Inheritance and Divorce: What You Need to Know

Inheritance can be a contentious issue in divorce proceedings, particularly when it comes to property division. As family lawyers, we often advise clients on how inheritance is treated in family law and the factors that can affect its inclusion in the asset pool.
Generally, inheritance received by one party during the marriage is considered a contribution by that party. However, the timing of the inheritance, how it was used, and the length of the marriage can all influence how it is treated in a property settlement.
For example, an inheritance received early in a long marriage and used for the benefit of the relationship, such as purchasing the family home, is more likely to be considered a joint contribution. On the other hand, an inheritance received shortly before separation and kept separate from the relationship's assets may be considered a separate contribution.
The Court also considers factors like the size of the inheritance, the financial needs of both parties, and any contributions made by the other spouse to the inheritance's maintenance or growth.
In some cases, parties may enter into Binding Financial Agreements to specify how inheritance will be treated in the event of a relationship breakdown. This can provide certainty and avoid potential disputes.
As family lawyers, our role is to analyse the specific circumstances of each case and advise clients on the likely treatment of inheritance in a property settlement. This involves gathering evidence, negotiating with the other party, and presenting arguments to the Court if necessary. By understanding the legal principles and potential outcomes, individuals can make informed decisions about their inheritance and protect their financial interests in the event of a divorce.




