safeguarding inheritance

Safeguarding an Inheritance: Legal Strategies to Protect Your Assets in a Divorce

Inheritances can add a layer of complexity to divorce proceedings, but there are legal strategies you can employ to safeguard the significant funds you inherited during your marriage. Here are the key considerations for safeguarding an inheritance in the event of a divorce:

  1. Keep the Inheritance separate: One of the most crucial steps is to keep the inherited funds separate from marital assets. Deposit the funds into a separate account in your name only and avoid mingling them with joint accounts or using them for joint expenses, and do not use them to pay down the mortgage on the matrimonial home.
  2. Document and Track: Maintain detailed records and documentation regarding the inheritance. This includes any communication, wills, probate documents, or other evidence that clearly establishes the origin and nature of the inherited funds. A clear paper trail can strengthen your case in demonstrating the funds as being separate property.
  3. Prenuptial or Postnuptial Agreement: If you haven’t already, consider a prenuptial or postnuptial agreement that explicitly outlines the treatment of the inheritance in the event of a divorce. These agreements can provide legal clarity and protection for both parties.
  4. Avoid Using the Inheritance for Marital Assets: Refrain from using the inherited funds for joint purchases, such as a home or investments, without proper legal documentation. Mixing the inheritance with marital assets can blur the line between separate and marital property.
  5. Invest Wisely: If you choose to invest the inheritance, do so carefully and consult with a financial adviser. Consider keeping the investment account in your name only and avoid joint investment accounts with your spouse.
  6. Consider a Trust: Establishing a trust for the inherited funds can provide an additional layer of protection. A trust allows you to dictate how the funds are managed and distributed, potentially protecting them from being considered marital property.
  7. Maintain Financial Independence: Throughout the marriage, maintain financial independence to the maximum extent possible. Continue to contribute to separate accounts and avoid co-signing loans or joint credit applications that could potentially intertwine your financial interests.
  8. Legal Representation: In the event of a divorce, consult with an experienced family lawyer. Share the documentation of your inheritance and seek guidance on the best legal strategies to protect these assets.
  9. Negotiate a Settlement: During divorce proceedings, consider negotiating a settlement that addresses the treatment of the inherited funds. This may involve proposing an unequal distribution of other marital assets to compensate for the value of the inheritance.

It’s important to note that the effectiveness of these strategies can vary based on individual circumstances. Seeking legal advice early on and staying proactive in protecting your inheritance can significantly impact the outcome in the event of a divorce.


Paradigm Family Law have a team of experienced and highly recommended divorce lawyers to help guide you through the process of divorce, just waiting to hear from you.

If you would like more details on this or want to discuss your family law matter, please do not hesitate to contact James, Frank, or Evelyn. Paradigm Family Law offers a free initial consultation with a top rated divorce lawyer and our fixed fee solutions cover financial proceedings from start to finish. You can call us on 01904 217225 or email us to [email protected].