Money received after separation

[Nimbus1999]

Hi,
A am set to receive a small amount of inheritance at some stage in 2024. Will this be included in the financial settlement on the divorce? Upon selling the family home soon, we will have enough money to rent a home each (50/50 childcare arrangement).

It would not have been received before completing form E but I will include in the next 12 months income section.

Should have said - been separated for 1.5 years and court case April re finances.

Has there been an official separation drawn up? My understanding is that inheritance can be set outside the financial agreement but you should check with your solicitor.

Not yet no, no agreements (hence court) although would like to settle beforehand.

You need to disclose the money. Then it can be considered and a decision made. The decision is either made between you or in court. The most likely decision is that it will be excluded as an asset to share. However it might, in limited circumstances, be viewed as an asset you have and thus reduce your “need”. For example if you inherited a 5 bed house and could live in it you would be seen to be housed.

Do you know at this stage how much or even when it will likely be received?

From the sale of the family home, we will get approx £125k each. Not enough to buy a property but enough to rent. Children 50/50 share childcare. It would be a cash inheritance, no property.

Would you say it could be argued our “needs” are met without the inheritance? I can’t imagine anything will be received until late 2024.

Probably £25k to £50k which would be a huge help as I don’t earn enough to cover the rent.

The issue for you and the other party is that this money will change your baseline wealth and that might have a material impact on decisions being made by that party or a court.

For example if I am asking for a bigger share of the equity because I am a lower earner and need more capital to buy but I am just about to receive 1m. There is a huge argument to say I don’t need a bigger share of the equity. That the 1m will set me up for the future. I could still get a share just not a bigger one. The question of whether I should get a smaller share could be asked.

It’s generally the case that ex’s know about potential inheritance. So there’s no point in hiding it. Instead you point out that it was not a marital asset. And that the current split of equity is sufficient to meet your needs post divorce.

@Nimbus1999 inheritance in uk is NOT considered part of matrimonial assets!

When this happened me my inheritance from my grandma was not included at any point even tho they knew I got it during proceedings

As with all things divorce in England especially there is no absolute position. In this case nobody has said that it absolutely will be treated as an asset. We have said it can make a difference to a settlement and explained why. Personal wealth changes the need calculation.

Plus if the inheritance is received during the marriage and used for the benefit of the marriage then it can be asset.

I would never hide it, I plan to fully declare everything in the form E. I’m assuming everything will be split 50/50 as both have equal needs. In that case, hopefully it will be excluded . I mean he received double of that amount as a redundancy payout since separation and that won’t be included (as probably all spent now).

i could try to ask for a bigger share of the equity to buy a house rather than rent (arguing more stability for the children, have a fixed mortgage rate to 2025, he is reckless with money etc) but it seems likely that the argument will be unsuccessful seeing as he no longer has any income and I work full time. Even with the inheritance, it would not be enough to buy a house to fit 5 people although it obviously helps. 50% equity plus 100% inheritance is enough to buy a 2 bedroom property for 5 of us.

Well the redundancy payment is a marital asset. It is usually related to length of service and therefore the period you are married.

You would be correct to bring it up. This is were you both agree they are not to be shared.

And if he has spent it all? Not much I can do then I guess. But then surely unreasonable to try to claim inheritance when he had double what I will get and kept it all.

Yes you can ask for disclosure on the amount. Where it went etc. But show willingness to trade it off if you want this over and done with.