Your child is getting divorced. Is your money safe?

You spent a lifetime building your family’s wealth. Here is what you need to know to make sure it stays in the family, whatever happens in your children’s marriages.

Few things are more painful than watching a child go through a divorce. But for many parents and grandparents, there is another worry too: that the money they have gifted, the property they helped to buy, or the inheritance that has passed down the generations might end up going to a son or daughter-in-law. With the right legal arrangements in place, it does not have to.

You may be wondering:

• Could my child’s ex-spouse claim part of the money I’ve gifted?
• Is the family home I helped them buy at risk?
• Can I still pass on my wealth safely to my children and grandchildren?

The good news is that with the right planning, there are clear, practical ways to protect family wealth without causing conflict or drama.

Why your wealth could be at risk

When couples divorce, the court looks at the overall financial picture: income, savings, pensions, property, and sometimes even past or expected gifts from family.

This means that:

• Gifts to your child (for example, towards a house deposit) may be taken into account.
• Inherited money that has been mixed into joint assets can become harder to separate.
• Family support that was never formally documented can be misunderstood or treated as part of the “marital pot”.

You can’t stop your child’s relationship from breaking down, but you can take steps to ring‑fence your own wealth and make your intentions clear.

Using trusts to protect family wealth

One of the most effective tools for protecting wealth is a trust.

A trust can:

• Hold assets on behalf of your children or grandchildren
• Keep control over how and when money is used
• Help separate family wealth from marital assets in the event of divorce

For example, instead of gifting your child a lump sum directly, you might place money into a trust that can be used for their benefit (such as housing or education), but is not legally “theirs” in the same way as a straightforward gift.

Trusts are flexible, but they must be set up carefully to be effective and tax‑efficient. This is where specialist legal advice is essential.

Helping with a house purchase safely

Many parents help their children onto the property ladder. But if your child later divorces, the property may be treated as a joint asset, even if you contributed a large part of the deposit.

There are ways to protect your contribution, such as:

• A Declaration of Trust – clearly recording who owns what share of the property
• A Loan Agreement – treating your contribution as a loan rather than an outright gift
• Buying through a trust or company structure in some circumstances

The key is to document everything before or at the time the money is provided, not years later when things have gone wrong.

Pre‑nuptial and post‑nuptial agreements

If your child is in a serious relationship or about to marry, a pre‑nuptial agreement (before marriage) or post‑nuptial agreement (after marriage) can help protect family wealth.

These agreements can:

• Set out what should happen to certain assets if the relationship breaks down
• Ring‑fence gifts, inheritances, or trust interests
• Reduce uncertainty and the risk of costly disputes later

While they are not automatically binding in England and Wales, courts increasingly give significant weight to well‑prepared, fair nuptial agreements, especially where both parties had independent legal advice and full financial disclosure.

Reviewing your Will and estate planning

Protecting your wealth from the impact of a child’s divorce is also about good estate planning.

You may want to:

• Review your Will to ensure your wishes are still appropriate
• Consider leaving assets in trust rather than outright to your children
• Think about how and when your grandchildren might benefit
• Coordinate your plans with any existing trusts, life policies, or pensions

A carefully drafted Will can help ensure that your wealth passes down the generations in the way you intend, with as much protection as possible.

Balancing protection with family harmony

These are sensitive issues. You may worry that raising them could upset your child or be seen as a lack of trust in their partner.

Handled well, though, these conversations can actually:

• Provide clarity and reassurance for everyone
• Reduce the risk of future disputes
• Show that you are thinking about the long‑term security of the whole family

At Garner & Hancock, we are used to navigating these conversations with care. We combine technical expertise with a calm, friendly approach, helping families protect what matters most without creating unnecessary tension.

How Garner & Hancock can help

Our specialist team can advise you on:

• Setting up trusts to protect family wealth
• Structuring gifts and loans to children safely
• Declarations of Trust for property purchases
• Pre‑nuptial and post‑nuptial agreements
• Wills and estate planning with divorce‑proofing in mind

We have many years of experience in family law, wealth protection, and estate planning, and are consistently rated 5 stars by our clients for our clear advice and supportive, professional service.

Talk to us about protecting your family’s wealth

If you’re concerned about how a child’s relationship or divorce might affect your family’s assets, it’s always better to get advice before problems arise.

You can:

• Book a one‑off legal meeting to discuss your situation, or
• Contact us to explore the best way to protect your wealth for future generations.