How you could be forced to give part of your inheritance to your ex even if you get the money AFTER breaking up with them – and the steps you need to take to protect your windfall
- Ex-partner can lay claim to your inheritance even if it is received after separation
- De facto couples can legally lay claim to an inheritance within two years of split
- Same rule applies to married couples as it takes 12 months to file for a divorce
- Lawyer Fiona Reid said couples could sign agreement to protect inheritance
- She also recommended keeping detailed records of any inheritance documents
Australians may have to give up part of their inheritance to their ex-partner even if they receive the money after break up, a top lawyer has warned.
De-facto couples under Australian law can legally lay claim to each other’s property within two years of separating.
Reid Family Lawyers founder Fiona Reid said that means an ex-partner could be entitled to a portion of your inheritance if it is received within that two-year period.
‘What many people don’t know is that everything goes into the asset pool, regardless of when that asset came into the relationship, and this includes inheritances,’ the Sydney lawyer told Daily Mail Australia.
De facto couples under Australian law can lay claim to each other’s inheritance within two years of separation, a lawyer has warned (stock image)
She said the two-year rule also applied to marriages as married couples have to be separated for 12 months to file for a divorce.
They then have a further 12 months to apply for a share of each other’s property – within which time one party could receive their inheritance.
Ms Reid said there were two steps couples could take to protect their inheritance from an ex-partner’s claim.
Firstly, she advised Australians to enter into a financial agreement with their partner which would deny them access to any future inheritance.
‘While these agreements aren’t bulletproof, you’re better to have one than not have one,’ she said.
The two-year rule also applied to marriages as married couples have to be separated for 12 months to file for a divorce and then have a further 12 months to apply for a share of each other’s property (stock image)
She also recommended keeping detailed records of any documentation related to an inheritance windfall.
That could include mortgage applications or probate documents.
‘Ensure you keep details of the amount of any inheritance you might have received during the relationship and how it was applied to the asset pool at large,’ she said.
‘This will be important evidence when you are asserting a greater contribution if your relationship ends.’
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