Inheritances

How an inheritance is dealt with in a property settlement will depend on your unique circumstances. If the matter proceeds to court, several factors will be taken into account.

Generally, if an inheritance is received during the course of a long marriage and used for the benefit of the relationship, it will likely be included in the property pool and considered a contribution by the spouse who received it.

If the inheritance is received towards the end of the relationship or after separation, the court may choose to exclude it from the joint asset pool, but may still adjust the division of the other assets—often awarding a higher percentage to the other spouse, depending on the overall circumstances.

The length of the relationship can also influence how the court treats an inheritance. In shorter relationships, inheritances may be more likely to be excluded.

If an agreement can’t be reached and the court is asked to decide, it will consider factors such as:

• Whether the inheritance was intended for both parties or just one
• When the inheritance was received—before, during, or after the relationship
• The length and nature of the relationship
• Whether the inheritance was applied to joint use or kept separate
• The size of the inheritance compared to the total asset pool
• Whether there was an expectation of the inheritance and how it was factored into financial planning
• Whether either party contributed in any way to the acquisition of the inheritance

On the other side of the coin, if one party is likely to receive an inheritance in the near future, the court may consider that as part of the assessment of the future needs of the parties.

If you’ve been unable to reach agreement, it may be worth reflecting on these factors. Not every case is the same, and outcomes can vary significantly.

Given the significant cost of court proceedings—which can run into hundreds of thousands of dollars—it may be more practical and cost-effective to find common ground and negotiate a financial agreement outside of court.

Need Assistance?
At Happily Divorced, we help you resolve matters efficiently, respectfully, whilst protecting your dignity, allowing you to move forward with confidence into the next chapter of your life.

Phone: 0415 807 583
Email: hello@happilydivorced.com.au
Website: happilydivorced.com.au