When it comes to property matters in the family courts, the person receiving an inheritance is often a consideration in property settlements. There are several factors that affect the weight given to an inheritance in terms of the final property settlement. These include:
#1. When the inheritance was received – 30 years ago or three years ago? If it was a long time ago, the contribution is often considered to have ‘eroded’ over the duration of the relationship. If the inheritance was given about the same time as the separation, the inheritance is to be a significant contribution by the person who received it, which they will be given credit.
#2. The amount of inheritance given – a huge contribution cannot be ignored as a contribution, and a small inheritance minimally impacts the property division contributions factors.
#3. Expected inheritance interests – this is whereby a person may ‘expect’ an inheritance, but this is not taken into consideration by family court, because it is not a given. Say you were always destined to inherit your mother’s millions, then her new husband encouraged her to change her will right before she unexpectedly dies, and you ended up with nothing. Expected inheritances don’t mean anything. It may be taken into consideration if one person’s financial wellbeing includes inheritances in the future.
Issues regarding expected inheritances include when, what the will says, asset contributions to the inheritance (such as a farm), and other factors.
If you don’t understand where you stand with an inheritance and property settlement, you need legal advice before you make any more decisions. Contact Vanessa Ash.
Call Vanessa Ash for a free case assessment and chat.