When dealing with divorce settlements in Australia, the question of how future inheritance is treated can arise.
While inheritances already received are often included in the property pool, future inheritances are generally not automatically included.
However, the Family Court may consider a future inheritance in divorce settlements Australia in certain circumstances, such as when it is imminent or has a significant impact on the financial needs of either party.
If you’re navigating a divorce and wondering how your or your ex-partner’s future inheritance may factor into the settlement, understanding the rules and legal considerations can help you prepare.
Are Future Inheritances Included in Divorce Settlements?
Unlike an inheritance that has already been received, a future inheritance is not usually included in the property pool for division.
This is because the inheritance does not yet exist as an asset owned by either party—it is a prospective entitlement.
However, the court can consider the likelihood and timing of a future inheritance as part of the overall financial picture.
For example, suppose you or your ex-partner is expected to receive a significant inheritance in the near future. In that case, the court may factor this into its assessment of financial needs and future entitlements.
Key Takeaway: Future inheritances are not directly included in the property pool but may still influence the court’s decision, particularly if the inheritance is imminent or significant.
Need a Lawyer?
Factors Considered by the Court
When deciding whether a future inheritance will influence a divorce settlement, the court takes into account various factors:
- Certainty of the Inheritance: The court is more likely to consider an inheritance if it is certain or highly probable, such as when a will specifies the recipient.
- Timing: If the inheritance is expected soon, it may be given more weight than an inheritance that is many years away.
- Impact on Financial Needs: The court may assess whether one party’s future inheritance could address their financial needs and adjust the settlement accordingly.
- Current Contributions: If one party has contributed to maintaining or growing the asset that is expected to be inherited, this may be considered.
Key Takeaway: The court assesses certainty, timing, and the financial impact of a future inheritance when determining its relevance to a settlement.
Family Lawyer Brisbane
We’re a family lawyer Brisbane can bank on. Offering legal support and services across divorce, child custody matters, and property settlement, our team works with you to keep costs and your stress down.
A Family Lawyer Brisbane Can Rely On
Ending a long term relationship can be a highly sensitive and stressful time. Where divorce, property settlement negotiations, and especially children matters are concerned, it can make for an incredibly trying experience. When you partner with our law firm, you’ll receive a family lawyer who understands and who can offer you ongoing support and guidance.
Hands-On Support, Tailored Guidance Through Family Law Matters
There are plenty of considerations you will need to be aware of throughout your family law process, your family lawyer will stay across these on your behalf. Our firm is committed to minimising your stress and working to create the most pleasant process we possibly can. We do this by keeping you informed and prepared, working to keep matters outside of the Court, and by offering flexible consultation arrangements.
Divorce & Separation Family Lawyer Brisbane
Highly experienced across all aspects of family law, our firm can support you through the divorce process. According to Australian Law, to have an Order of the Court declare you divorced you’ll need:
1. To have been separated for 12 months prior
2. To have no likelihood of reconciliation
3. To be able to show you’ve made appropriate arrangements for children
Your family lawyer can guide you through the divorce process, including the creation and lodgement of your divorce application. You can also partner with your family lawyer for property settlements, financial agreements, child custody matters, pet arrangements, and any other family law matter.
Family Lawyer Brisbane: Child Custody Matters
Children’s matters are one of the more stressful processes in family law. Our first stop in the custody process is to try and create a parenting plan through mediation. This sees both parents sit down together and come to a fair, equitable plan that suits both parties, but more importantly benefits the child the best. We understand this is an uncomfortable and tense process, we work to create a comfortable, supportive environment for our clients.
Where needed, we’ll then support you through the court process, should mediation not work.
Property Settlements Handled By Your Family Lawyer Brisbane
Your family lawyer will support you through the property settlement process. Following a divorce or separation, couples will need to divide their property and assets. We prefer to resolve these matters in mediation as it keeps costs down, as well as your stress. However, we’ll guide you through court processes where it becomes necessary too.
How The Family Law Act Finds An Equitable Settlement
When you divide your property, it’s not necessarily going to be a 50/50 split. The Family Law Act works to ensure property is divided in a way that is equitable and beneficial to both parties. So, rather than directly halving assets and property, The Act considers what each party contributed to the asset pool, what they’ll need moving forward, and the resources each party has.
So, as an example, say a separated couple owned two homes and had three children together. The wife had worked full-time and the husband had been the stay at home carer of the children. The law might consider the wife’s financial contributions, though these may be balanced by the husband’s contributions to the family home. Say the couple had agreed that the husband would take the children throughout the week, with the wife taking them on weekends — the husband would be in a more favourable position to take the larger, family home.
Financial Agreements
Financial agreements, binding financial agreements, or in some cases “prenuptial agreements” are legally binding, contractual agreements between two parties. The agreement specifies how their property and assets should be divided in the case that their relationship ends. It means that if the time does come around, the couple have already created a directive — before the situation is tense and sensitive.
These agreements are obviously very useful for both parties and work to protect them. However, to ensure these agreements stand up and cannot be disputed, a lawyer must oversee the documentation. Financial agreements can be arranged privately or via Consent Orders of the Family Court.
Wills & Estates Brisbane
Your family lawyer is also totally across will preparation and estate planning. These documents work to protect you, your family, and ensure your final wishes are met. We understand that the preparation and planning of these documents can be overwhelming — it’s hard to think about a time where you’re not here. Our team will guide you through the process and considerations needed to create a tight legal document.
Meet Your New Family Lawyer Brisbane
As a family lawyer Brisbane can rely on for tailored support and guidance, as well as quality, insightful legal advice, we’re passionate about providing a high standard of service. We’ll partner with you to ensure you’re feeling supported, informed, and confident moving forward.
Family Lawyer Brisbane: Our FAQs
Who gets the house after divorce depends on many different factors. Basically, the law will take into consideration who contributed what to the household — financially and in care, and who needs the house moving forward. So, if one party is taking care of the children for a majority of the time following the separation, the Family Law Act is likely to favour them to take the house.
Family law is the section of the law that pertains to family and domestic matters. Family law covers divorce, child custody matters, property settlements, and wills and estates.
Property settlement is the process of dividing up assets and property following separation or divorce. It’s a legal process that is typically facilitated by a family lawyer.
The Family Law Act is an Act of the Australian Parliament. Basically, the Act specifies laws, rules, and processes for legal proceedings in the family law space. These laws are created to try and create equitable processes and fairer outcomes for families.
Family Law Courts will typically award custody of the child or children to the parent whose care is in the children’s best interests. It is in the best interest of the child or children for the parents to create a parenting plan, however where this isn’t feasible or the parents cannot come to an agreement together, the Family Law Court will come to a decision based on the child’s needs.
A family lawyer wears many different hats. From acting as a support to clients and facilitating mediation, to researching and gathering evidence, and through to representing clients in court.
Family lawyers support clients through divorce and separation, property settlement, child custody matters, financial agreements, and the preparation of and planning for wills and estates.
Mediation sees two people sit down to resolve a dispute with a neutral third party facilitating the conversation. Family lawyers will usually encourage couples to go through mediation in the first instance, especially where children are involved.
Book a Family Law Consultation
Our family law consut is where we will discuss your situation in detail and provide thorough advice on the next steps you should take to resolve your matter.
Book a Call for Wills and Estates
Our Wills and Estates call is an initial discussion with our team to discuss your wills, powers of attorney or estates.
How Future Inheritances Can Influence Property Settlements
Although future inheritances are not usually divided, they can indirectly affect property settlements. Here’s how:
Adjustments to Financial Contributions
If you or your ex-partner is likely to receive a significant inheritance, the court may adjust the settlement to reflect this future financial advantage.
For instance, the other party might receive a greater share of the current property pool to balance out the disparity.
Financial Resource Consideration
The court may treat a future inheritance as a financial resource rather than an asset. This means it may not be divided but could influence how existing assets and liabilities are distributed.
Spousal Maintenance
If spousal maintenance is being considered, a future inheritance may be relevant to determining the financial capacity of the party who is expected to receive it.
Key Takeaway: Future inheritances can influence the distribution of current assets or spousal maintenance, even if they are not divided directly.
Protecting Future Inheritances
If you’re concerned about your future inheritance being considered in a divorce settlement, there are steps you can take to protect it:
- Binding Financial Agreements (BFAs): A BFA, commonly known as a “prenup” or “postnup,” can specify how future inheritances will be treated in the event of a separation.
- Trust Structures: Placing assets in a trust can sometimes protect them from being included in a property settlement, though this approach has limitations and should be carefully planned with legal advice.
- Clear Communication: Discussing inheritance expectations with family members may help set boundaries and avoid disputes.
Key Takeaway: Steps like creating a Binding Financial Agreement or using trust structures can help safeguard future inheritances during property settlements.
The Importance of Legal Advice
Given the complexity of future inheritances and divorce settlements, obtaining personalised legal advice is highly recommended.
A family lawyer can assess your situation and provide tailored guidance, ensuring your rights and interests are protected throughout the process.
Whether you are concerned about your own inheritance or that of your ex-partner, a lawyer can clarify how the court might view it and help you prepare accordingly.
Key Takeaway: Legal advice can provide clarity and confidence when navigating the treatment of future inheritances in divorce settlements.
Future inheritance in divorce settlements in Australia is not automatically included in the property pool, but it can still play a role in shaping outcomes.
Whether you are on the receiving or opposing side, understanding how the court considers these matters is key to preparing for negotiations or proceedings.