FAQs About Protection Of Inheritance After Divorce

Divorce itself is an overwhelming experience both emotionally and financially. All the other aspects that you need to consider and worry about just add to the uneasiness of the whole process. So, if you are planning or currently dealing with a divorce, one thing is that your current and future inheritance can be impacted.

Divorce is the time when you are losing a relationship that you cherished once. Now is the time to minimize your losses on the other fronts. So, knowing the roles and responsibilities in every aspect of settlements and division can help you secure your interests.

During the financial settlement proceedings, the court will divide your assets into a matrimonial and non-matrimonial pot. The assets in the matrimonial pot will be divided equally between the two parties - withholding the sharing principle.

Inherited assets from both parties may be considered non-matrimonial by the court most of the time. These assets are treated differently from matrimonial assets and ring-fenced from the matrimonial pot. However, this factor depends on the two key factors and facts in each case.

• The parties needs

• How parties dealt with the received asset.

Some questions that can pop up in your mind when thinking about inheritance division after divorce are answered in the following article.

What If I Received My Inheritance Before Marriage?

The fulfillment of the needs of both parties and any minor child is the court’s top priority in any financial settlement case.

So, if the inheritance is received before marriage, the court may consider the following points;

• Inheritance amount

• The time when you received the inheritance

• Length of time the couple remained married

• The financial needs of the parties

• Whether the inheritance was used for the benefit of family or marriage

If the parties’ financial needs are not met with the sharing principle. Then the court moves into resourcing of the non-matrimonial assets. In the first step, the inheritance received before marriage is added to the matrimonial pot to ensure that the parties' needs are met.

If the inheritance property or money has been mixed or mingled with the matrimonial assets. The opposite party can claim the inheritance to be treated as a matrimonial asset and demand equal division. This can happen in cases. For instance, if a priorly inherited home becomes the marriage home or if the inherited amount is kept in a joint account.

What If Inheritance Is Received During Marriage?

The proceedings in this scenario are simple. If the inheritance was received while being lawfully wedded, the court will consider it part of the matrimonial assets pot.

What Will Happen To My Future Inheritance?

The element of uncertainty in the time and amount of future inheritance makes the court protect it from division. It is an extremely rare case for the court to consider future inheritance both in terms of money and property.

What If I Get Inheritance During Financial Remedy Case?

During any litigation or financial remedy case, all the parties owe each other and the court a full, frank, and clear disclosure of the financial assets. When completing the financial statement, everyone is obligated to disclose any inheritance received during the proceedings and provide a copy of the Will and grant of probate.

How Can I Protect My Inheritance During Marriage?

Divorce is not the only time couples and individuals think about inheritance safety. Not to the surprise, Peak Family Law says there are options available where you can protect your inheritance while being in the marriage:

A Pre Or Post Nuptial Agreement

A prenuptial agreement is an agreement signed by the consensus of the two parties before marriage. It is a document deciding the financial aspects of the family after marriage. What will be a common asset and who will be responsible for what financial duty is all decided in a prenup agreement.

In short, a prenup can be a record of assets being matrimonial or non-matrimonial. Although the terms and conditions of a prenup are scrutinized during the financial settlement process, a judge is bound to consider a prenup agreement. However, a prenup can be nullified if the details were not entered properly and family needs are not met.

Keep Inheritance Separate From Marriage

If you are about to inherit property and want to keep it safe for yourself, then avoid using it for the benefit of the marriage. This will help you keep the inheritance out of the matrimonial pot of assets in case of separation.

Put Inheritance In Trust

Consider placing the inheritance into a trust to protect it from division.

Conclusion

Disagreements over the inheritance in any divorce or separation case are common and daunting. These disagreements can cause stress and acrimony for all the involved parties. However, consulting a trusted family solicitor or lawyer with special expertise in financial settlements can help you get your desired outcome.

Disputes during divorce make the process even more stressful. The article answers commonly asked queries about the protection of inheritance after divorce.