You married their family too: Marrying into money and the implications upon divorce
Last updated: July 2026 | Jurisdiction: England & Wales | Estimated reading time: 6 minutes
As Netflix has shown starkly with Harry and Meghan’s 2022 documentary, marriage sometimes brings with it a lot more than a spouse. This can have a profound impact on the marriage, and raises a question we're asked often: what happens to inherited money and divorce when they collide?
Where there is multi-generational wealth, it’s common for family members to provide a helping hand to couples in the form of financial assistance. Whether it’s gifting a deposit for a home, paying for private school or funding a lifestyle, with this generation set to be the first who earn less than their parents, it’s a pattern that will likely continue and perhaps become more common. But what happens when a marriage that has been funded by family wealth attributable to one party, breaks down? In what circumstances does this “help” form part of the matrimonial pot, where it can be shared upon divorce?
The predictable answer is: it depends. When it comes to inherited money and divorce, the starting point is that gifts or inheritance from one spouse's family are generally treated differently by family courts than assets generated by the parties during their marriage. However, there are many circumstances where this does not apply. I have set out below some of the most common ways in which family money from one spouse can become a central issue on divorce, and the key factors at play.
When your home is funded by the bank of (your partner’s) mum and dad
If your ex’s family have been involved somehow in the purchase or ownership of your home, the first questions to ask are: how is your home owned, is your name on the title, is it owned by your spouse or by their family? These questions are fundamental to your right to claim against any property. On divorce, you can only claim against a property (or a share of property) that is owned by your spouse. It is not possible to claim against a property (or share of property) that is owned by their family.
The next thing to consider is where the purchase monies have come from. If the deposit for your home was gifted to your spouse by their family, then the gift will fall into the matrimonial pot and can be divided upon divorce. However, if the deposit was loaned to your spouse by their family (and it is a “hard” loan) then it must be repaid to the lender and will be excluded from the matrimonial pot. The question of whether a loan from a family member will be considered a “hard” loan centres on whether there is a real expectation of it being repaid.
Follow the money
During your marriage, was your lifestyle funded by your spouse’s family money? If so, where did the money come from: a trust, a parent, a wider family member? In the case of gifts of money from family members to one spouse, if these funds were used to support your standard of living, then they can become ‘mingled’ with other property and will form part of the matrimonial pot. The longer the marriage, the greater the risk of ‘mingling’. However, if the funds have been held in a separate bank account and not touched during the marriage, they will likely be treated as separate property and will not be shared on divorce, particularly if there is enough money in the matrimonial pot to cover both parties’ respective needs.
In the case of money flowing from a trust, if there is a connection between the trust and the marriage, or the trust makes some form of continuing provision for both or either of the parties or any children, the court can deem it to be a “nuptial settlement” and consequently make an order to vary the trust in any way. The court can also view a trust as a financial resource of one party and make orders accordingly. This is perhaps the most common way that trust assets are brought into the matrimonial pot upon divorce. It’s important to consider where the money that you are living off is coming from, as it could make a difference to your entitlement upon divorce.
Is inherited money protected in a divorce?
When it comes to inherited money and divorce, the starting position is that inheritance is treated as non-matrimonial property, sitting outside the pot to be shared. This protection is not automatic, though. As set out above, inherited money is likely to lose that status if it has been mingled with joint finances or used over time to fund the couple's lifestyle.
The court will also look at whether the matrimonial pot alone can meet both parties' needs. Where it cannot, the court may still make an order against inherited assets, even where they technically remain separate. This is often the deciding factor, rather than where the money originally came from. If you're concerned about protecting inherited money, or think a former partner's inheritance should form part of your settlement, it's worth getting early advice on how the courts are likely to view your specific circumstances.
It’s not personal, it’s business
In many cases, a marriage may be funded by a business held by one party or their family, or income derived from that business. In principle, where a business has been acquired or accumulated during the marriage, it is deemed matrimonial property and therefore should be considered as part of a fair division of the matrimonial assets. Though, as with property, you are only entitled to make a claim against a business or share of business that is owned by your ex. It is therefore important to understand the structure and ownership of the business when considering your claims upon divorce. In cases where there is family money that is disproportionately attributable to one party in a marriage, it’s always important to consider the ownership and source of the assets as that is key to understanding your potential entitlement upon divorce.
Getting support if you have a situation with inherited money and divorce
nherited money and divorce can be a complicated combination, and getting it wrong can mean losing protection you're entitled to or missing out on a fair share you deserve. We're always happy to have a no-obligation chat about the way forward, so please do contact a member of the team if you'd like to talk through your circumstances.
Frequently asked questions about inherited money and divorce
Does it matter if the inheritance was received before or during the marriage?
It can. Inheritance received before the marriage is generally easier to keep separate, while money inherited during a long marriage is more likely to have been mingled with joint finances and treated as part of the matrimonial pot.
What if I inherit after we've separated but before the divorce is finalised?
An inheritance received after separation is more likely to be treated as separate property, particularly if it has not been used to meet the family's needs. However, timing alone is not decisive, and the court will still look at whether the matrimonial pot is sufficient without it.
Can a prenuptial or postnuptial agreement protect an inheritance?
A well-drafted prenuptial or postnuptial agreement can help ring-fence inherited money, though as the law currently stands these agreements are not automatically binding on the court. They carry significant weight where both parties received independent legal advice and the agreement is fair, which makes early planning worthwhile.
Does the length of the marriage affect how inherited money is treated?
Yes, generally speaking. The longer the marriage, the more likely it is that inherited money has become mingled with joint assets or used to support the couple's lifestyle, which increases the chance it will be treated as shared.
