Family Assets in Divorce ======================== What Are Family Assets in Divorce? ---------------------------------- In divorce law, family assets - also referred to as familial or parental assets - are those derived from one spouse's family, typically through inheritance, gifts, or family trusts. These assets are usually considered non-matrimonial, meaning they are not automatically subject to division upon divorce. Courts distinguish between [matrimonial](https://vardags.com/law-guide/how-the-courts-decide-a-financial-settlement/matrimonial-assets-in-divorce)assets (acquired during the marriage) and [non-matrimonial](https://vardags.com/law-guide/how-the-courts-decide-a-financial-settlement/non-matrimonial-assets-in-divorce)assets (acquired outside the marriage), but may still consider the latter if needed to meet financial [needs](https://vardags.com/law-guide/how-the-courts-decide-a-financial-settlement/the-needs-principle). Are Family Assets Divided in Divorce? ------------------------------------- Generally, family assets are ring-fenced and retained by the spouse who received them. However, the court may "invade" these assets if: - The matrimonial assets are insufficient to meet the other party's [needs](https://vardags.com/law-guide/how-the-courts-decide-a-financial-settlement/the-needs-principle) - The family assets were used for joint purposes during the marriage - The asset has been [matrimonialised](https://vardags.com/law-guide/how-the-courts-decide-a-financial-settlement/matrimonialisation-of-assets) (e.g. used to buy the family home) Key Factors Courts Consider --------------------------- When deciding whether family assets should be included in the financial settlement, courts assess: - The source of the asset - Whether it was kept separate or used jointly - The needs of both parties (especially housing) - The standard of living during the marriage - Whether the asset has been intermingled with matrimonial property Can Family Assets Become Matrimonial? ------------------------------------- Yes - through [matrimonialisation](https://vardags.com/law-guide/how-the-courts-decide-a-financial-settlement/matrimonialisation-of-assets). This occurs when: - Family wealth is used to fund joint purchases - Gifts or inheritances are deposited into joint accounts - Family-owned property is transferred into joint names Once matrimonialised, these assets may be subject to equal [sharing](https://vardags.com/law-guide/how-the-courts-decide-a-financial-settlement/the-sharing-principle). Conclusion ---------- If one party contributes significant familial wealth to the marriage at the outset, this is likely to be taken into account when considering the fairest way to divide the assets. Equally, if, during the marriage, one party receives significant gifts from family members, or inherits their family's assets, these too could be ring-fenced by the court for that party to retain upon divorce. However, if those familial assets are required to meet the other spouse's "needs", for example their need to be re-housed, then the court is entitled to "invade" them, and they may well fall to be divided in the financial settlement. The court will take into consideration the standard of living enjoyed by the parties during the marriage when considering a spouse's needs in the future. Familial assets which do not legally belong to one of the parties to the marriage will not form part of the settlement, unless it can be shown that the spouse has a beneficial interest in those assets, despite the fact that they do not hold the legal title. The importance of the source of familial assets can diminish over time. There may be, for example, intermingling of familial and marital assets, which results in the familial assets thereafter becoming "[matrimonialised](https://vardags.com/law-guide/how-the-courts-decide-a-financial-settlement/matrimonialisation-of-assets)". How the assets have been held and how they have been made use of by the parties during the marriage is therefore extremely important, and relevant for the court to consider when exercising its discretion upon division. The way in which the courts view familial assets is fact specific and depends upon all the circumstances of the case. ### **Need Expert Help?** **If your divorce involves family wealth, inheritance, or gifted assets, our expert solicitors can help you protect what's yours. We offer a free initial consultation to qualifying individuals.** [BOOK FREE CONSULTATION](https://vardags.com/contact "BOOK FREE CONSULTATION") About Us -------- Ayesha VardagFounder & President "A DIVORCE LAWYER WIDELY REGARDED AS ONE OF THE WORLD'S BEST" The Metro Vardags offer a unique approach to the law, specially tailored to the needs of HNW individuals. We offer City-quality representation for your divorce and family law needs. Our lawyers come from the very best universities and receive the very best training - they are determined, diligent, and dedicated to getting the best outcome... [read more](https://vardags.com/about-us) [BOOK FREE CONSULTATION](https://vardags.com/contact) Related Reads ------------- ### Inheritance law and divorce When an ex-husband or ex-wife dies, make sure you check the grant of probate or letters of... [READ MORE](https://vardags.com/family-law/inheritance-law-and-divorce "Inheritance law and divorce") Related Guides -------------- [How Are Assets and Liabilities Valued in Divorce?](https://vardags.com/law-guide/how-the-courts-decide-a-financial-settlement/how-are-assets-and-liabilities-valued "How Are Assets and Liabilities Valued in Divorce?") [How are different assets, incomes, and liabilities treated by the courts?](https://vardags.com/law-guide/how-the-courts-decide-a-financial-settlement/assets-income-liabilities-on-divorce "How are different assets, incomes, and liabilities treated by the courts?") [Is inheritance included in a divorce settlement?](https://vardags.com/law-guide/how-the-courts-decide-a-financial-settlement/is-inheritance-included-divorce-settlement "Is inheritance included in a divorce settlement?") Glossary Reference ------------------ ### Non-matrimonial property Non-matrimonial property refers to assets that were built up other than during the marriage. The information on this website is intended as a guide and does not constitute legal advice. Vardags do not accept liability for any errors in the information on this website, nor any losses stemming from reliance upon the statements made herein. All articles and pages aim to reflect the legal position at time they were published, and may have been rendered obsolete by subsequent developments in the law. Should you require specialist advice, tailored to your situation, please see how Vardags can help you. 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