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How does an Inheritance affect a Property Settlement after we separate?

How does an Inheritance affect a Property Settlement after we separate?

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Inheritances are treated as a financial contribution by the person who receives it.  It also depends on when the inheritance was received and what it was spent on.

If it was late in the relationship or after separation then some Judges have segregated the money from the other assets if there are enough other assets to be shared.  It is also treated as a financial resource of the person who received it and that is also factored in.

If the money was received during the relationship and used to build up the assets (like paying off a mortgage) then it is counted as a contribution which could then see that person receiving a higher portion of the assets.

There are other factors to consider but large inheritances usually see that person receiving more of the assets when the property is divided.  It is a fallacy that property settlements are usually split evenly.That is actually rarely the case.

It is important to obtain legal advice before entering into and property settlement agreement.  Call Ruth Single on freecall 1800 087 934 or why not register for our upcoming FREE Family Law Information Session by clicking https://familylawgosford.com.au/events/free-family-law-information-session-5/