Inheritance and Divorce: What Happens

Is inheritance counted in a divorce settlement?

Sometimes. Inheritance is not ignored, but it does not sit in the same pot as everything else by default. The courts in England and Wales first identify which assets are matrimonial property, built up during the marriage, and which are non-matrimonial, such as an inheritance or something owned beforehand. Non-matrimonial assets may be left out, or may be shared where they are needed (gov.uk, as at July 2026, subject to change).

Matrimonial or non-matrimonial property

The starting point is a split between the two categories. Assets built up together during the marriage or civil partnership, such as the family home and joint savings, are generally matrimonial property and shared. Inheritances, gifts and pre-marriage assets are often treated as non-matrimonial and may be ring-fenced, though any growth in their value during the marriage can still be looked at (gov.uk, as at July 2026, subject to change).

Type of asset	Usual starting treatment
Family home and joint savings built up together	Matrimonial property, generally shared
Inheritance kept separate from marital finances	Non-matrimonial, may be ring-fenced
Inheritance mixed into the home or joint accounts	Often treated as part of the shared pot
Growth in value of an inherited asset	Can be taken into account in some cases

Type of asset

Usual starting treatment

Family home and joint savings built up together

Matrimonial property, generally shared

Inheritance kept separate from marital finances

Non-matrimonial, may be ring-fenced

Inheritance mixed into the home or joint accounts

Often treated as part of the shared pot

Growth in value of an inherited asset

Can be taken into account in some cases

General position based on gov.uk, getting a financial agreement, as at July 2026 and subject to change. How any case is decided depends on its own facts.

When inheritance stops being ring-fenced

Ring-fencing is a starting point, not a guarantee. Even an inheritance kept separate can be brought into a settlement where the other assets are not enough to meet both people's reasonable needs and those of any children. In that situation the courts can look to non-matrimonial money to bridge the gap, so a large inheritance may still be shared in whole or in part (gov.uk, as at July 2026, subject to change).

How the inheritance was handled matters too. Money paid into the family home, a joint account, or used for family spending tends to lose its separate character and be treated as part of the shared pot. Where a couple cannot agree, a judge decides how assets are split, weighing factors such as the length of the marriage and each person's role in the family (gov.uk, get the court to decide, as at July 2026, subject to change).

Because outcomes turn on needs and the individual facts, many people take advice from a family law solicitor before assuming an inheritance is protected.

What about an inheritance you have not received yet?

A future inheritance is usually harder to bring into a settlement, because it has not happened and may never arrive in the form expected. A person can change their will at any time, and the value and timing are uncertain, so the courts are generally cautious about counting money that is only expected (gov.uk, as at July 2026, subject to change). Where an inheritance is thought to be imminent and substantial, though, it can sometimes be a factor.

Both people are expected to give full and honest disclosure of their finances when reaching a settlement, whether through agreement or the court. If parties agree how to divide things, they apply for a consent order to make it binding; if not, a judge can make a financial order (gov.uk, as at July 2026, subject to change). A mediator can help resolve issues out of court.

A worked example (illustration only). Priya inherits £150,000 partway through a marriage. She keeps it in an account in her sole name and never mixes it with the couple's money. On divorce, the family home and joint savings comfortably meet both people's housing and income needs, so her inheritance may be treated as non-matrimonial and left largely out of the split. Change the facts, so that the £150,000 had gone into the family home, or the couple had few other assets, and the same money could instead be drawn in to meet needs (gov.uk, as at July 2026, subject to change). This is a general illustration, not a prediction for any real case.

How does divorce affect your will?

Divorce does not cancel your will, but it changes how parts of it work. Once a marriage or civil partnership is legally ended, the will generally takes effect as if the former spouse or civil partner had died on that date, so any gift to them and their appointment as executor usually fall away, unless the will says otherwise (gov.uk, the effect of divorce on wills, as at July 2026, subject to change). The rest of the will stands.

Timing is important. Until the divorce is final, an ex-partner may still inherit under an existing will and, for married couples, spouse transfers can be exempt from inheritance tax, with the nil-rate band set at £325,000 per person (gov.uk, as at July 2026, subject to change). Because a gap between separating and finalising can leave an out-of-date will in force, many people review their will as they separate. For the detail, see our note on how divorce affects a will.

Before the divorce is final. The existing will usually still names the spouse, so they may inherit if you die in that window.

After it is final. Gifts to the former spouse and their role as executor generally lapse, unless the will provides otherwise.

Making a new will. Many people write a fresh will once arrangements are settled. See How to Write a Will.

Inheritance and divorce in Scotland and Northern Ireland

The general approach differs by nation. Scotland has its own family law, and inheritances and gifts received by one person are often treated as separate rather than matrimonial property when a marriage ends, with the shared property broadly that built up between marriage and separation. Northern Ireland has its own rules that are closer to those in England and Wales but not identical. Because the treatment of an inheritance can vary, it can be worth taking advice in the relevant nation. For the wider picture, see our estate planning guide.

Frequently asked questions

Does my spouse have a right to my inheritance in a divorce?

Not automatically. An inheritance is usually treated as non-matrimonial property and may be ring-fenced, especially if kept separate from joint finances. It can still be shared where the other assets do not meet both people's reasonable needs or those of children, depending on the circumstances (gov.uk, as at July 2026, subject to change).

Can I keep an inheritance separate during marriage?

Keeping an inheritance in a sole account and away from the family home and joint spending can help it remain non-matrimonial, which the courts may then leave out of a split. It is not guaranteed, because needs can override ring-fencing. Many people take advice on how their circumstances would be viewed (gov.uk, as at July 2026, subject to change).

Is inheritance received after separation still counted?

It can be, though it is often treated with more caution than assets built up during the marriage. Money received after separation may be seen as non-matrimonial, but where the shared assets fall short of both people's needs, the courts can still take it into account, depending on the facts (gov.uk, as at July 2026, subject to change).

Does divorce cancel gifts to my ex in my will?

Once a divorce or dissolution is final, the will generally takes effect as if the former spouse or civil partner had died on that date, so gifts to them and their role as executor usually lapse unless the will says otherwise (gov.uk, as at July 2026, subject to change). Before the divorce is final, the existing will can still apply.

How do we make a financial settlement binding?

Where a couple agree how to divide money and property, they apply for a consent order so the agreement is legally binding, and a mediator can help reach terms out of court. If they cannot agree, a judge can make a financial order deciding the split (gov.uk, as at July 2026, subject to change). Applying for the divorce itself carries a separate fee of £612 (gov.uk, as at July 2026, subject to change).

Do I pay tax when transferring assets to my ex?

You do not usually pay Capital Gains Tax on assets given to a spouse or civil partner before the divorce is finalised, and different rules can apply once it is final (gov.uk, as at July 2026, subject to change). The position can be complex, so many people check with HMRC or a tax adviser before transferring anything.

About Fairchild Oldfield

The Fairchild Oldfield team brings together estate planning, tax, independent financial advice and client care, working with families across England and Wales.

Fairchild Oldfield are estate planning specialists and will writers, not a firm of solicitors. This article is general information based on practical experience, not legal, tax or financial advice.

Important: This article is general information only and is not legal, tax or financial advice. Reading it does not create a professional relationship. It is based on the law of England and Wales, and other UK jurisdictions may differ. Figures and rules are current as at July 2026 and are subject to change. Before acting, many people choose to seek advice from a suitably qualified professional, such as a family law solicitor, a STEP practitioner, an accountant, or an FCA-authorised financial adviser, who can consider your individual circumstances.