In family law matters, one of the most common questions we receive at Ramsden Family Law is:
Can my ex claim my inheritance?
The answer isn’t always straightforward.
While inheritance is often considered a personal gift, in certain circumstances, it may be included in the property pool during a separation or divorce. Here’s what you need to know.
How Does the Court View Inheritance?
Inheritance may be treated differently depending on when it was received and how it was used during the relationship.
Before the Relationship
If you received an inheritance prior to the relationship, it’s more likely to be considered your initial contribution. While still acknowledged, its impact can diminish over time, especially in long-term relationships where contributions become more intertwined.
During the Relationship
If the inheritance was received during the relationship and used for joint purposes, such as purchasing a home, paying down a mortgage, or funding family expenses, it is more likely to be treated as part of the shared asset pool.
After Separation
An inheritance received after separation is typically more protected. However, if there are ongoing financial matters or pending property settlements, the Court may still consider it when assessing the overall financial positions and needs of each party.
Key Factors the Court Considers
When determining if and how inheritance should be included in a property settlement, the Court considers:
- Timing of the inheritance
- Intended use (was it used jointly or kept separate?)
- Length of the relationship
- Financial and non-financial contributions of both parties
- Future needs – including health, age, income disparity, and care of children
Is Inheritance Always Divided?
Not necessarily. The Family Court adopts a discretionary approach. While inheritance can be included in the asset pool, it doesn’t mean it will be split equally, or at all.
In many cases, the court may adjust the division to reflect the contribution of the inheriting party, particularly if the inheritance formed a significant portion of the total assets. For example, if one party received a substantial inheritance late in the relationship and it remained separate, they may retain a greater share of the total asset pool.
However, if the inheritance was integrated into joint finances or used to benefit both parties, the Court may treat it as a joint contribution, especially in long-term relationships.
How to Protect an Inheritance
If you are concerned about protecting your inheritance, consider the following legal options:
1. Binding Financial Agreements (BFAs)
A BFA, commonly referred to as a prenup or postnup, can set out how assets, including inheritances, will be treated if the relationship ends. These agreements must be carefully drafted and require independent legal advice for both parties.
2. Keeping Finances Separate
Maintaining the inheritance in a separate bank account and avoiding using it for joint expenses can help demonstrate it was intended to remain your asset.
3. Clear Records
Document the source and use of your inheritance. This evidence can be critical if a dispute arises.
Ramsden Family Law Can Help
At Ramsden Family Law, our experienced family lawyers understand how emotionally and financially complex separation can be, especially when inheritances are involved.
Whether you’ve received an inheritance or are concerned your ex may claim part of yours, we provide tailored, strategic advice to protect your interests and future.
Find out more about our inheritance legal services.
Need Advice About Your Inheritance and Separation?
While your ex may not automatically be entitled to your inheritance, it’s important to understand that the Family Court has broad discretion in how assets are treated during a property settlement.
The outcome will depend on your unique circumstances, including the timing, use, and contribution context of the inheritance.
Contact us today to book your free 30-minute consultation with one of our accredited family law specialists.
