Keeping It In The Family: How Prenups Can Help Protect Inherited Wealth

Across the UK, families are preparing for the largest intergenerational transfer of wealth in living memory. In the next three decades alone, an estimated £5.5 trillion to £7 trillion will change hands between parents, grandparents, and their adult children. Much of that wealth takes the form of property, business shares, or financial gifts, passed on during lifetime or left through carefully structured estates. But with that generosity comes a quiet anxiety: what happens if the recipient's relationship breaks down?

For many families, the risk isn't just theoretical. Divorce can destabilise plans that took years to build. In the absence of clear legal safeguards, assets gifted or inherited with long-term intentions in mind can become entangled in financial remedy proceedings. Even where wealth is ringfenced on paper, the Family Court has wide discretion to prioritise fairness and need, and that means family wealth can find its way into the matrimonial pot, often against the original donor's wishes.

When family money becomes marital money

In English law, the dividing line between matrimonial and non-matrimonial property is supposed to offer some protection for inherited assets. But in practice, that line is easily blurred. Take, for example, a property gifted by a parent to their child before marriage. If that property becomes the couple's family home, is used as a joint financial springboard, or features in a shared lifestyle over many years, it may lose its 'separate' character entirely. Even wealth held in trust may be seen as a financial resource if it supports joint spending or provides indirect benefits to both parties.

The court's primary concern remains fairness, especially where there are children involved. That means inherited money, even if technically non-matrimonial, can be taken into account when calculating appropriate financial outcomes. It's not uncommon for a parent's gift to end up partially awarded to a departing spouse, simply because it has become part of the financial fabric of the marriage.

Prenups

This is precisely where prenuptial and postnuptial agreements come into their own. When carefully drafted and fairly entered into, a nuptial agreement can set out clear terms about what should happen to specific assets in the event of divorce. Importantly, it can identify inherited wealth, or the expectation of future inheritance, as something to be preserved outside the matrimonial pool.

Since the landmark decision in Radmacher v Granatino in 2010, the courts in England and Wales have shown increasing willingness to uphold nuptial agreements, provided certain safeguards are met. These include full financial disclosure, independent legal advice for both parties, and the absence of undue pressure or unfair outcomes. If those conditions are satisfied, a prenup is likely to carry significant weight, and may be decisive.

From a legal perspective, the value of a prenup lies in the certainty it brings. But for families, especially those with long-standing businesses, legacy properties, or multi-generational estates, its real value may be emotional. It gives donors, trustees, and parents peace of mind that their intentions will be respected, even if the couple's relationship later falters.

A vital link between family law and estate planning

Estate planning professionals have long used a range of tools to preserve and pass on family wealth. Trusts, lifetime gifts, co-ownership structures, family investment companies, and carefully worded Wills all play a role. But those tools can only go so far if the recipient of the wealth later enters a marriage unprotected by any nuptial framework.

For instance, where a discretionary trust is designed to preserve wealth for the next generation, but the trust income or benefits are used to support a couple's lifestyle, the courts may still view that trust as a resource. Or consider the now-common scenario where parents gift a deposit for their adult child's first home. If that property is purchased jointly or becomes the family home, and there is no formal agreement in place, the gift may well be absorbed into the couple's shared finances, particularly if the relationship spans many years.

In these situations, a prenup acts as a bridge between legal structures and relationship realities. It allows families to complement their estate planning with a form of protective foresight that recognises life's unpredictability. Increasingly, family lawyers and private client practitioners are working together to offer joined-up advice that captures this intersection.

The wealth transfer is real

The scale of the challenge isn't hypothetical. According to recent research, baby boomers alone are expected to pass on more than £5 trillion in the next few decades. Yet studies show that many feel unprepared for the complexity involved. A 2025 report from EY found that 14% of boomers hadn't begun preparing for the transfer at all, while 22% felt the process had become significantly more complex in just the last few years. Meanwhile, HMRC inheritance tax investigations have surged by 41% in the past year, and tax receipts continue to hit record highs, underscoring the need for well-documented, carefully structured wealth transfer strategies.

But inheritance planning isn't just about tax. For families who want to ensure that property, farms, business assets or heirlooms stay within bloodlines, or are preserved for future grandchildren, relationship breakdowns are a more pressing concern. The emotional fallout of watching a child's inheritance become a disputed asset during divorce proceedings is not one many parents plan for. A nuptial agreement helps close that gap.

Reframing prenups as a positive conversation

Despite their growing recognition, prenups still carry a certain stigma. Some couples are reluctant to raise the idea for fear of seeming mistrustful. Yet in practice, many couples find the opposite is true: entering into a well-considered agreement can help clarify expectations, strengthen mutual understanding, and reduce the risk of conflict if things later go wrong.

Seen through that lens, a prenup becomes less about doubt and more about dignity. It allows couples (and their families) to approach marriage with open eyes and honest intentions. For those with inherited wealth, or parents preparing to make significant lifetime gifts, it is simply a wise and respectful step towards preserving the family's broader legacy.

At Buckles, our family law and private client teams work together to provide exactly this kind of joined-up advice. Whether you're considering a prenuptial agreement, preparing to pass on wealth, or advising children who are entering marriage with significant assets, we're here to help you navigate the conversation with clarity and confidence.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.