Can a Prenuptial Agreement Protect Inherited Assets?
When preparing for marriage, it is natural to focus on building a future together. However, for individuals with significant inherited assets or family wealth, protecting these assets can be an important part of planning ahead. A well-drafted prenuptial agreement can provide reassurance and help safeguard inherited property in the event of a divorce.
Understanding how inherited assets are treated during financial settlements — and how a prenuptial agreement can help — is crucial for anyone concerned about preserving family wealth.
What Happens to Inherited Assets During Divorce?
Under English law, all assets owned by either party, including those acquired before or during the marriage, can be considered when reaching a financial settlement. This includes inherited assets such as family homes, investments, land, or valuable heirlooms.
Although inherited assets are often treated differently from marital assets, they are not automatically excluded. The court’s primary concern is achieving a fair outcome that meets the needs of both parties and any children involved. If necessary to meet reasonable needs, inherited assets can be shared between spouses.
The longer the marriage and the more the inherited assets are used for family purposes (such as being used to purchase the family home), the more likely they are to be treated as part of the matrimonial pot.
How a Prenuptial Agreement Can Protect Inherited Assets
A prenuptial agreement allows couples to agree in advance how assets, including future or existing inheritances, should be treated if the marriage ends. A properly drafted prenup can specify:
- That inherited assets are to remain the separate property of the person who inherited them.
- That income derived from inherited assets, such as rent or dividends, should not be shared.
- That any increase in value of inherited property during the marriage should remain with the original owner.
While prenuptial agreements are not automatically binding in England and Wales, they are highly persuasive if certain conditions are met. Courts increasingly give significant weight to prenuptial agreements where both parties have entered into them freely, with full disclosure, and with independent legal advice.
Key Requirements for a Prenuptial Agreement to Be Effective
To maximise the chances of a prenuptial agreement being upheld, it must:
- Be entered into voluntarily, without pressure or duress.
- Be signed well in advance of the wedding (at least 28 days is recommended).
- Involve full and frank disclosure of each party’s financial position.
- Be fair and not prejudice the reasonable needs of either party or any children.
- Be supported by independent legal advice for both parties.
An agreement that seeks to leave one party in financial hardship is unlikely to be enforced. However, a fair prenup that addresses both needs and non-matrimonial property, such as inheritances, has a strong chance of being upheld.
Final Thoughts
For anyone bringing significant inherited wealth into a marriage, a prenuptial agreement offers a clear, sensible way to protect assets while still planning positively for the future. It provides financial certainty, reduces the potential for disputes, and ensures that family wealth is preserved for future generations.
At Pembridge Solicitors, we provide expert advice on drafting and negotiating prenuptial agreements tailored to your personal circumstances. Our experienced family law team can help you protect your interests while maintaining a respectful and collaborative approach to future planning.
Contact Pembridge Solicitors today for expert advice on prenuptial agreements:
Pembridge Solicitors
Calderwood House, Montpellier Parade, Cheltenham, GL50 1UA
Telephone: 0330 900 0377
Email: info@pembridgesolicitors.co.uk
Website: www.pembridgesolicitors.co.uk
