Is my former partner entitled to my inheritance

An ex-partner may be able to claim part of an inheritance when a relationship ends, whether it was a marriage or a de facto relationship.

The easiest and most practical way to protect an inheritance after separation is by reaching an agreement on how assets including the inheritance would be divided.

The agreement can become legally binding when applying for consent orders from the Court or having lawyers create a binding financial agreement.

If a couple is unable to come to an agreement through negotiation. They may file an application with the court to determine whether the inheritance will be kept solely for the beneficiary's benefit or will be added to the property pool available for distribution.

If a recipient of an inheritance took steps to protect what they received, such as by keeping it separate from the pool of family assets, the court may in some cases treat the inheritance as separate from the property pool available for distribution.

The way the court divides assets, including inheritance during a property settlement, is not predetermined. Considering the particular facts and merits of each case, the court strives for a just and equitable outcome.

When making a decision, the court may consider the following factors:

• The time the inheritance was received:
  • Whether the inheritance was obtained prior to the start of the relationship, during the relationship or following separation, the court may take this into consideration.
• Contributions made by the ex-partner to the inheritance:
  • Contributions from a former partner can expose the inheritance to being included in the asset pool for division.
• The size of the inheritance:
  • The court may compare the size of the inheritance to the total value of the joint assets. If the inheritance is significantly larger, it may be included to ensure a fair settlement.
• Relationship of the ex-partner with the Benefactor/Testator:
  • The court may consider the relationship between the ex-partner and the benefactor, along with the benefactor's intentions in the will, and decide whether to include the inheritance in the asset pool for division.

Navigating the complexities of a property settlement, can be daunting especially when inheritances are involved. Contact us for expert legal advice on the most appropriate and cost-effective course of action for you and your family. Call us at (02) 4647 2968 or complete an enquiry form on our website to get started.