Inheritances will be considered by the Family Court during separation proceedings. But it depends on your individual circumstances whether it will be included in the pool of marital assets to be divided. Of many factors, the Court may consider:
- When the inheritance was received;
- The intention/s of the donor;
- The length and nature of your relationship with your spouse;
- The financial contributions made during the marriage;
- The future needs of each party;
- The current size of the asset pool; and
- Other factors set out in the Family Law Act 1975.
Generally, an inheritance received during the relationship is considered a financial contribution. As such, it cannot be excluded from the asset pool simply because it is an inheritance. However, if your inheritance significantly helped you to acquire your marital assets (e.g. your matrimonial home), the Court will recognise your contributions and make adjustments in your favour.
If you received your inheritance late in the relationship or after separation, it is unlikely that your ex-spouse could have contributed to the receipt of the inheritance. Therefore, the Court may treat the inheritance as separate from the asset pool. Nevertheless, this will be subject to personal factors, such as the intentions of the donor, the current size of the asset pool and the future needs of each party.
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