Inheritance & Separation: Does my ex have an entitlement?

After separation, the ordinary course is for the parties to finalise their property settlement in the form of a Court Order, either by consent or with the assistance of the Court.  In this article we consider what would happen when one party receives an inheritance after separation, but before the property settlement has been finalised.

It's my inheritance so I get to keep it, right?

The first and most important thing to know is that a post-separation inheritance will still form part of the property pool available for distribution between you and your former partner.

However, this does not mean that your former partner is automatically entitled to receive any of the inheritance.  In some situations, the party who received the inheritance may get to keep it and the rest of the assets are distributed based on the parties’ respective contributions and future needs.  Alternatively, the inheritance may be treated the same as the other assets, with the party who received the inheritance retaining a greater percentage of the property pool.

Is there any way I can protect my inheritance?

Here are some things you can do to protect your inheritance:-

• Finalise your property settlement

If you have already completed your property settlement at the time you receive your inheritance, you will not need to share it with your ex.

•  Keep the inheritance separate

If you receive an inheritance before you have finalised your property settlement, make sure you keep it separate from any other assets.  Where the inheritance has not been mixed up with other funds or assets, it will be easier for you to say that it should be treated differently as part of the overall property pool and that you should be able to keep it.

•  Obtain comprehensive estate planning advice

To ensure that your own estate is distributed to your loved ones as intended, talk to us about your estate planning options to make sure your beneficiaries are protected.

There is no one size fits all approach and every situation will depend on the circumstances of the individual.  Contact us to make an appointment to discuss your estate planning and property settlement options.