Receiving an inheritance from a family member, friend or other loved one after they pass away is an experience common to many people. Unfortunately, inheritances can also result in disputes when one or more parties question what they or others have, or have not received. When one receives an inheritance before or after they separate from a spouse, the situation can become even more complicated. In this situation, it is best to consult a Family Lawyer to ensure your rights under the law are protected.
If you and your former spouse are involved in a property settlement, how will an inheritance you received during your relationship be taken into account? This complex scenario will rely on several different elements, such as whether the inheritance was received during the relationship or after the relationship ended; the monetary value of the inheritance; and whether the former spouse can argue that they made a contribution to the inheritance. In this situation, it is simplest if the inheritance was received after your separation from your former spouse. In this scenario, it is more likely you could successfully argue that the inheritance should not be able to be claimed by your former spouse. However, this may have a negative flow-on effect in regards to what you may be entitled to when it comes to the property settlement of you and your former spouse’s combined assets.
The situation becomes more complicated when the inheritance was received while you and the other party were still in a relationship. It is generally more likely that the inheritance will be treated as a “joint asset” rather than as yours alone. In this situation, the party who received the inheritance may receive a positive “contribution adjustment” when it comes to negotiating the property settlement between parties. However, this may not necessarily be the amount that was actually given as inheritance. If this happens, it is important to discuss this with a Family Lawyer who can advise you on your best course of action.
Consulting a Family Lawyer becomes especially important in cases where when you have children, if you and your former spouse lived together before separating, as well as many other factors that can affect whether an inheritance is viewed as a joint asset to be divided between parties. This is because eachof these factors could bring forth further legal rights or obligations. Additionally, whether either of you had a Binding Financial Agreement or Pre-Nuptial Agreement in place will be important in determining the legal outcome of these matters.
As each family law matter is distinctive, it is important to get legal advice specific to your personal set of circumstances.
If you have any questions about your inheritance, family law matter or want to create a Binding Financial Agreement, give us a call on 02 8917 8700 or fill out the enquiry box and we will get back to you ASAP.