Can I ring fence my inheritance?

[PersephoneParlormaid]

This is a question for actual legal people, as I’ve asked the solicitor dealing with my father’s estate and he gave a negative answer. Something to do with hiding assets or something.

This seems sensible.

Your solicitor is correct. You cannot ring fence your inheritance. However, if you keep it separate from any marital money and don't use it to buy marital assets, the courts will try to preserve it for you if you divorce and will only dip into it if there is no other way to meet your husband's reasonable needs.

By the way, I note that you say you have made a will leaving everything to your children. Your husband will be able to challenge this will under the Inheritance (Provision for Family and Dependents) Act 1975 on the basis that you have failed to make reasonable financial provision for him. In broad terms, he is likely to get as much as he would have received if your marriage had ended in divorce and, of course, if he did take action, some of your estate would be eaten up in legal fees. You may want to rethink your will to avoid this situation.

@prh47bridge I’ve left it that he can live in ( my half of) the house until he dies/remarries/cohabitates.
He has a considerable pension, unlike me who was a SAHM for years so that he could do his job, so he would have plenty of money to live on.

I don’t see how creating a will that leaves everything to your (adult? Young adult?) children is an issue, if you have made provision for your husband’s continued living arrangements? I would definitely get advice on that in the hope that you’ve created a ‘work around’.

My situation is different as I am divorced but I have made a point of not living with or remarrying while my kids are at home. Everything I have goes to my kids and once they’re all safely off to uni I will go back to the solicitor to make sure nothing goes to my future husband (as I hope to remarry). I found that the divorce process was generally more forgiving for a SAHM, the lack of pension etc was definitely taken in to consideration.

Edited to add that my divorce was finalised around 13 years ago so I can’t say what changes have occurred.

I’ve asked the legal person in our household. All assets when you get married, whether in your own account or a joint one, become marital property. Your best bet is a really healthy prenup, which are increasingly being recognised in the UK.

It’s a bit late for that now!
And I believe that if DH can be housed and live comfortably off his pension, I am more likely to be able to keep it. I dont think there’s a yes or no answer, it’s very individual.

Get legal advice then. You’ve had an offer of a free initial call; take it.

A financial settlement will attempt to split all assets fairly. 50/50 is the starting point and the only thing usually that varies this is children - the older the children the less variance.
Until you file for divorce you have no way of knowing.

Is your dh aware of the inheritance? If not, do not tell him or discuss it.

It’s an issue because the will comes into effect only when someone dies and deals with what they’ve got at the time of death. What the OP is asking about is the division of assets at the time of divorce.

It will make no difference whether funds are in a joint or separate bank account.

Pensions are also considered a marital asset, so if he has a healthy one, you are entitled to start to negotiate 50% of that for yourself. So maybe a decision for him to keep his pension and You to keep your inheritance? Or combine and split equally?

I kept all of mine and recouped what I had paid into the joint mortgage.

However, I had a shit hot solicitor and I exploited the fact my ex had caused the divorce and emotionally guilted him into it. He was agreeable that he shouldn’t have it and when court had to rubber stamp settlement the thought it was all OK. Had my ex been an arsehole and said he wanted it, I’d have lost some I think.

My financial advisor said mixing it into joint assets would be the worst thing to do.