An inheritance is not automatically excluded from your property settlement, and it is not automatically split either. Australian family law has no fixed rule for inheritances. How yours is treated depends mostly on when it was received, what was done with it, and what else is in the property pool.
Timing matters more than anything
Received early in the relationship: an inheritance is usually treated as a contribution by the receiving party, but its significance fades over a long relationship as both parties contribute in other ways.
Received late in the relationship or after separation: it carries much more weight as that party’s contribution. A recent inheritance is often kept out of the division in practice, with the rest of the pool adjusted, but it can still be counted, particularly where the other party has strong future needs and the pool is otherwise small.
Not yet received: a mere expectation of inheriting from someone still living is generally not property to be divided, though in limited circumstances it can be relevant to future circumstances.
What you did with it matters too
An inheritance paid into the joint mortgage, renovations or family spending becomes intermingled and harder to isolate. One kept in a separate account in your sole name retains a clearer identity. This does not decide the outcome by itself, since the court looks at contributions and future needs across the whole pool, but separation of funds preserves your argument.
Protecting an inheritance
If you have received or expect an inheritance and the relationship is healthy, a binding financial agreement can quarantine it. If you are separating, get advice before agreeing to anything, and remember the time limits: 12 months from a divorce becoming final, two years from separation for de facto couples.
Frequently asked questions
My parents left the inheritance only to me. Does my ex still have a claim?
Being the named beneficiary makes it your contribution, but it still forms part of the overall analysis. There is no automatic shield, and no automatic entitlement for your ex either.
What about an inheritance received after we separated?
It is generally treated as a post-separation contribution by you and often dealt with separately from the main pool, but it can still be relevant, especially to future needs adjustments.
Can I just not mention it?
No. The duty of full and frank disclosure covers inheritances, and settlements reached without disclosure can be set aside.
Get clarity before you negotiate
Inheritance questions are highly fact-specific, and a small difference in timing or treatment can move outcomes significantly. A 90-minute consultation gives you a realistic assessment for your numbers. Use the enquiry form just below, or call (02) 4210 9288. Garrison Lawyers acts for clients across Wollongong, Shellharbour, Kiama, the Illawarra and the Shoalhaven.
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This article is general information only, current at the date of publication. It is not legal advice and does not take your circumstances into account. For advice about your situation, speak with a family lawyer.