Who owns the money in a joint account when there is inheritance money?

Does anyone know the answer to this? 

My husband and I have a joint account. We live in Scotland. He transferred the money he inherited from his mother into our joint account. I want to separate. We are amicable so far and thought of splitting the money in the joint account 50/50 however he thinks that this could be perceived potentially as he gifting part of the inheritance to me and be taxed for it.
I see it as it was mixed with our salaries used by both of us and after 25 years of both of us working and creating a family whatever is there is half and half.
And it shouldn’t affect his taxes as it is effectively my money as well since it is in the joint account. 

Any suggestions will be hugely appreciated 
thank you 

Comments

  • Prudent
    Prudent Posts: 11,437
    Name Dropper First Post First Anniversary
    Forumite
    Generally in Scottish law any inheritance does not form part of the matrimonial property. Your husband can keep all of his inheritance if you divorce. I am not sure of the position with regard to tax if he does wish to share this money with you.
    Frugal Living Challenge 2024 CROFT Crafting: £80/300, R (visiting daughter): £125/£500 Outside activities: £54/244 (Allotment), Outside 2 (Mud monsters et al) £120,  F(Family visits): £50/500 Tummy (food budget): Aiming to use full budget monthly of £200
  • tacpot12
    tacpot12 Posts: 7,836
    First Anniversary Name Dropper First Post
    Forumite
    You inherited any money and shared it with him, you have more of a moral basis on which to argue that he should share it. Don't forget that the a split doesn't have to be 50/50. If you have more need of the money than he does, you can make that arguement to. If you are likely to inherit any money, I don't see why he should split his inheritance if you are not also prepared to give him half of yours. 
    The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always try to check official information sources before relying on my posts.
  • Norman_Castle
    Norman_Castle Posts: 11,871
    Photogenic First Post Name Dropper First Anniversary
    Forumite

    I see it as it was mixed with our salaries used by both of us and after 25 years of both of us working and creating a family whatever is there is half and half.

    How long ago was it inherited and added to the joint account? Did your husband intend it to be shared and used by both of you? As the inheritance was left to your husband he has more claim to it than you.
  • MalMonroe
    MalMonroe Posts: 5,783
    First Anniversary First Post Name Dropper Photogenic
    Forumite
    If your husband didn't want you to have access to his inheritance, then he wouldn't/shouldn't have put it into your joint account.

    That's what a joint account is for, as far as I'm aware. Sharing expenses and income no matter how much who put into it.

    However, as your split is going to be amicable can't you just talk about it?

    I don't see why it would affect anybody's taxes, unless Scotland has different laws about joint accounts - I'm in England. And as a married couple with a joint account at the time of the inheritance, I'd consider it to be a joint inheritance. If you weren't married then that would probably complicate things but it doesn't seem complex as things stand.

    If your husband doesn't want you to have any of the money, then he should say so. 

    When my husband decided he wanted to leave our marriage, he actually froze our joint account - something I didn't feel he had the authority to do since it was joint. 

    You're probably going to need to consult a solicitor anyway if you're going to go on to divorce so you could perhaps contact one and ask for a free initial consultation. 
    Please note - taken from the Forum Rules and amended for my own personal use (with thanks) : It is up to you to investigate, check, double-check and check yet again before you make any decisions or take any action based on any information you glean from any of my posts. Although I do carry out careful research before posting and never intend to mislead or supply out-of-date or incorrect information, please do not rely 100% on what you are reading. Verify everything in order to protect yourself as you are responsible for any action you consequently take.
  • Heedtheadvice
    Heedtheadvice Posts: 2,421
    First Anniversary Name Dropper First Post
    Forumite
    edited 16 August 2022 at 9:01PM
    Please do not post if you do not know the answer, even to try and help on a moral or seemingly  sensible basis.

    Prudent has it correct: under Scottish  law....
    On divorce there is normally (but not necessarily) a joint split 50/50 of matrimonial assets which  can include things like pension assets.

    Matrimonial assets do NOT include things like heritable property ( such as the Matrimonial home) purchased prior to marriage ( unless specifically bought for the marriage) ....and inheritances.

    Now one spouse can gift  money to the other without any tax implication or gift an inheritance.

    I am not certain though that holding a monetary inheritance in a joint account makes any difference......unless of course some or all of the inheritance was gifted....

    Muddy water unless you know the  law and best not to guess!
  • Please do not post if you do not know the answer, even to try and help on a moral or seemingly  sensible basis.

    Prudent has it correct: under Scottish  law....
    On divorce there is normally (but not necessarily) a joint split 50/50 of matrimonial assets which  can include things like pension assets.

    Matrimonial assets do NOT include things like heritable property ( such as the Matrimonial home) purchased prior to marriage ( unless specifically bought for the marriage) ....and inheritances.

    Now one spouse can gift  money to the other without any tax implication or gift an inheritance.

    I am not certain though that holding a monetary inheritance in a joint account makes any difference......unless of course some or all of the inheritance was gifted....

    Muddy water unless you know the  law and best not to guess!
    It's correct that inheritances are not considered matrimonial property in Scots Law (unless the assets change form - e.g. if you inherit money and buy a house with it then the house becomes matrimonial property) but what's not clear to me is that once you put the money into a joint bank account and comingle it with daily expenditures how do you delineate the inheritance from the joint savings?

    If you inherit £50k and then 20 years later have £50k in the bank account then is it to be assumed that is all inheritance and one partner receives 0? Or was the inheritance spent on the mortgage and the current £50k is joint savings from employment income and therefore all marital assets?

    I think what is clear though is that if the OPs concern is tax that shouldn't be an issue. So if the parties are in agreement to split the money 50/50 there is nothing to stop them doing so. 
Meet your Ambassadors

Categories

  • All Categories
  • 341.5K Banking & Borrowing
  • 249.6K Reduce Debt & Boost Income
  • 449K Spending & Discounts
  • 233.6K Work, Benefits & Business
  • 605.9K Mortgages, Homes & Bills
  • 172.3K Life & Family
  • 246.7K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards