Inherited Wealth and Divorce

Inherited Wealth and Divorce

Date online: 16/06/2011

The Court of Appeal has recently handed down a judgment in a ‘big money’ divorce case which shows the approach the courts are likely to take towards financial settlements on divorce when one of the spouses has substantial inherited assets.

The case concerned a couple who were divorced after 25 years of marriage. The Court ruled that the settlement payable by the husband, who had very considerable inherited wealth, should be reduced from £8 million to £7 million.

The decision was made after the factors listed below had been taken into account, the Court stressing that the objective in such cases is to achieve a just result.

The fact that wealth was inherited and not earned justifies it being treated differently from wealth accumulated during the marriage;
The nature of the inherited wealth must also be taken into account – an investment portfolio would not be treated in the same way as, for example, an ancestral home. This might be a good reason for departing from the equality principle which might otherwise apply;
The duration of the marriage may be in point if it determines the time the wealth has been enjoyed by both parties; and
The standard of living provided by the inherited wealth would also be in point, as would the extent to which it has been added to or depleted. In principle, the longer wealth has been enjoyed by both the parties to the marriage, the less fair it would be to ‘ring-fence’ it in a settlement.
There is, said the Court, no formula which applies: what constitutes a fair division of assets in each case will depend on the individual facts.

If you require further information about a divorce or family matter then please contact us here at Molesworths Solicitors on 01706 356666.

Kelvin Eatherington. Marketing & Business Development Manager

Tel: 01706 767407. email:


The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.

Molesworths Bright Clegg is a firm of solicitors established in the United Kingdom and is registered with theSolicitors Regulation Authority.

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