I want a Divorce, but what about my Inheritance?

Family Law | Originally posted 11 January 2018

For many divorcing couples this is a real worry when considering the financial aspects of their divorce proceedings. Many don’t want their personal inheritance to form part of the ‘Matrimonial Pot’ which is available for division by the Court during your divorce.

It’s important to understand that inherited assets are not automatically excluded or ‘ring-fenced’ from the Matrimonial Pot. However, in the same breath they’re not automatically included. As per a leading Court of Appeal case it is established that Inherited Wealth that has not been earned can be treated differently to wealth accrued by joint efforts.

The Manx Courts must therefore take a view on each individual case. The matter of Inherited Wealth has been explored greatly in Case law and would attract the following questions from the Court:

  • What was the size of the inheritance?
  • When it was received?
  • How it has been used?
  • What are the financial needs of the parties and children (if any) at the time of the divorce?

Once the above basic details have been established the Isle of Man Courts will explore more in depth the nature of the Inheritance. For example they would ask, whether the inherited assets had been transferred to joint names or used for the benefit of the couple/family? If so, it is likely that the Inheritance would form part of the Matrimonial Pot.

Should the inherited assets have been received shortly before the breakdown of the marriage they are less likely to be included in the Matrimonial Pot. It would however depend upon whether there are other sufficient assets available to meet the couple’s or family’s future needs.

It may be that the Inheritance you are worried about dividing has not yet been received. Usually future inheritances are not taken into account when dealing with the financial aspects of a divorce however they may be if it is expected that inheritance is of a substantial worth or if the person making the bequest is expected to die in the near future.

Divorce versus Inheritance | Talk to us today
If you need to talk to someone around divorce and inheritance issues, then take the first step and please email [email protected] or call them on 01624 639350 to arrange your free initial consultation with us today.