As many as one in three parents are apparently reluctant to leave an inheritance to their married children, because they fear the relationship will end in divorce and ultimately result in assets leaving the immediate family.
The study, by Investec Wealth & Investment, found that 12% of parents said their children’s marriages had already broken down and a further 14% had little or no confidence they would last a lifetime.
Investec Wealth & Investment has seen a rise in the number of clients enquiring about measures to mitigate the risk of assets leaving the family unit in the event that their children’s marriages fail to last. Its research shows that one in six (17%) parents are favouring small financial gifts rather than a lump sum to help with day-to-day living, while 14% have decided to skip a generation and leave assets to their grandchildren.
“In our experience parents may disapprove of their children’s choice of partner but can be reluctant to interfere in case they cause a family rift,” explained Simon Bashorun, Financial Planning Team Leader, Investec Wealth & Investment. “But with divorce rates as they are in the UK, we are seeing increasing numbers of parents looking to protect wealth from leaving the immediate family, particularly if they’re pessimistic about the state of their children’s marriages.”
For expert legal advice on the potential financial implications of divorce or separation, then contact our specialist family lawyers today.