Loading...

Treatment of a Large Inheritance in a Property Settlement – What Can Happen

22 June 2020

The court recently had to consider how to treat a large inheritance received by the wife during the relationship. In particular, the court had to consider whether those assets should be excluded and quarantined from distribution, or whether everything should be included in the pool available to distribute.

The facts:

The wife received an inheritance of approximately $3.5 million a few months after the parties were married. The inheritance included investment properties and a company which provided the wife with a substantial annual income. The husband also worked during the relationship.

The argument:

The wife’s argument was that the inherited assets and her post-separation assets should be quarantined and only the property and assets acquired jointly during the marriage should be divided between the parties.

The outcome:

The court did not agree with the wife’s argument, saying that she was downplaying the husband’s contributions during their nine-year relationship, including his non-financial contributions to the care of their child.

The court determined that the property pool should include all assets, and noted that the wife had made the overwhelming financial contribution to the asset pool. The court assessed that the husband should receive 8% of the asset pool for his contributions. The court also awarded the husband an additional 2%, taking into account the wife’s superior earning capacity and financial resources. The husband received approximately 10% overall, with the wife retaining the balance.

The outcomes in Family Law matters can be unpredictable, but it is worth getting professional legal advice to ensure you know your rights and achieve the best possible outcome. We specialise in all matters of Family Law, please call us (07) 3221 4300 to organise your initial fixed-fee consultation – protect your rights!

For further information read our Inheritance in Property Settlements article.

Treatment of a Large Inheritance in a Property Settlement – What Can Happen. Accompanying picture: modern multilevel house exterior
2020-06-22T12:11:27+10:00

Client Testimonials

Your team is professional, warm, friendly and real.
N.R., Crows Nest
Amy’s work was extremely professional but above all she has a manner and wisdom in dealing with people under stress. I will be recommending your firm to anyone that requires assistance.
K.H., Augustine Heights

I would like to thank your firm for the support and compassion shown while dealing with my matter.

C.M., Brisbane
A personalised and professional service. Information has been clear and provided timely to assist my decision-making.
S.S., Hamilton
I appreciate you being upfront with fee estimates. You also have a fantastic website and the seminars REALLY helped to get me focussed.
T.C., Tarragindi
Thank you for providing me with a professional yet empathetic approach to gain the best outcome for me. My solicitor was excellent in explaining the processes and in representing me in Court. You have great customer service!
T.V., Everton Park
I always felt that the service provided by Michael Lynch Family Lawyers was of a high standard. Each time, after appointments I came away feeling secure. Keep doing what you are and maintain the ‘family feel’ that permeates your services.
C.W., Brookfield
My family lawyer was very helpful in assisting me to combat a very ugly situation without stooping to the low levels that the other solicitor attempted to take us.
M.J., Manly
If I need a family lawyer in the future I’ll be heading to Michael Lynch Family Lawyers again.
C.W., Brookfield

Michael Lynch Family Lawyers know what they are talking about.

R.M., Warwick
I appreciate my lawyer’s professional approach and her being on top of my situation.
N.S., Mt Gravatt
Amy, thank you. You have been diligent, accurate and pro-active for the entire duration of my matter. I appreciate it.
R.P., Cleveland
Michael Lynch Family Lawyers always gave me competent and knowledgeable advice. I was consistently kept up to date. The meetings and phone calls were kept business-like, yet caring and thoughtful of my emotional state at the time. Thank you.
J.S., Holland Park
Your team’s communication with me was exceptional, I knew exactly what was happening.
A.A., Eatons Hill

Many thanks to Stephanie for her help and support through this time, I was incredibly impressed with her work.

L.K., North Lakes

Thank you Debra for all the work you did for me, you both made the process manageable and brought sense to the chaos.

R.B., Toowong

My solicitor is a good listener. My documentation maintained the high moral ground.

S.S., Hamilton
Thank you for the outstanding legal advice you have provided and professionalism in which you conduct yourself. I am truly thankful that it was you who represented me.
M.T., Stafford

I was always confident that I was getting the very best advice.

T.S., Flinders

I really liked the personable service by Michael Lynch Family Lawyers, the simple plain language you adopt and everyone’s patience.

A.O., Kedron
I like your friendly service and the ability to speak to my solicitor directly.
R.G., Wishart
Thank you for your ongoing conciliatory approach in this matter and as always I appreciate your level headed advice. I certainly feel that I ended up with the right Solicitor.
S.C., Nundah
I really appreciated the happiness of your secretarial staff.
G.C., Clayfield
My solicitor provided a personalised service, prompt and quick responses and cost information prior to my commitment.
G.C., Southport
The staff at Michael Lynch Family Lawyers were great. Everyone was fantastic, professional, understanding, caring and always communicated with me. I knew I was in good hands.
A.A., Eatons Hill
Michael is very personable and very good at covering the material and explaining the strategy.
J.O., Hawthorne
May I take this opportunity to express my gratitude to you and your staff for the excellent professional services I received. In a word, priceless.
D.H., Hendra
Michael Lynch Family Lawyers have really listened to me. I felt confident my case was handled well. The law has changed recently, and I did not feel that a previous law practice I spoke to was suitably up-to-date.
P.B., Carindale
Thank you, you placed my needs first, you were aware of the need to reach a final result and not get caught up in the personal issues of the other party.
S.L., Moranbah

I have appreciated the way that you and the staff at your firm have handled my situation. I would especially like to mention the professional and caring way my lawyer conducted my case, I am deeply grateful and extremely happy with the results. I will be referring others to your service.

J.H., Wellington Point
Michael, thank you again for your presence here yesterday. We really appreciated the clarity and accessibility of your presentation. It is a rare thing to find somebody who not only has expertise, but also has a skill in communicating it.
J.S., Brisbane
I liked my solicitor keeping things as simple as possible.
S.M., Clayfield

Thank you for being very personable, professional and always providing me with the most appropriate advice in my times of difficulty. The other party’s lawyers were extremely aggressive, while Michael Lynch Family Lawyers remained calm and professional.

S.D., Parkinson

Michael Lynch Family Lawyers are easy to deal with, and your systems are good.

D.T., Ferny Grove
Thank you for the great newsletter. Your article on “Coping with Christmas” is brilliant – clear, caring and helpful. Thanks again!
C.T., Bribie Island

Thank you, you kept me sane in a difficult situation and gave me the encouragement and the confidence to keep going. You made me feel extremely comfortable.

A.M., Chambers Flat

My lawyer was the most knowledgeable of all lawyers I spoke to when looking for a lawyer. Michael Lynch Family Lawyers showed professionalism.

R.R., Brighton
Many thanks for your assistance – life is now great – I’m moving on.
J.K., Mansfield
The professionalism and reliability delivered by Amy Honan was fantastic. I had an urgent matter around my property sale and Amy offered to provide assistance over a weekend if I required it – that’s above and beyond!
E.F., Nundah

My lawyer has been an amazing help through this stressful time. I will remember her help for the rest of my life. Thank you.

J.H., Brisbane

Your staff is knowledgeable, professional and very calm.

A.C., Helensvale
My lawyer acted with professionalism in all her dealings with me and with the lawyer on the other side. I was always kept in the loop. I liked her approach. Thanks.
D.S., Coorparoo

Thank you for helping me through this difficult time. You have been caring, compassionate and efficient. Some of my divorcing friends have not been so fortunate. In my mind, you are the best family lawyer in Brisbane. If anyone I know needs a good family lawyer, I will tell them to speak to you. Thanks again.

B.T., Clayfield
Amy, thank you for all that you have done during this matter. You impressed me with your professionalism from our initial meeting, and you have proven beyond doubt, to have had the skills and knowledge required. You are a credit to the company, and I would highly recommend you to anyone in a similar situation.
R.P., Cleveland

After utilising the mediation services team recommended by your organisation, my ex-partner and I were able to reach some interim agreements about parenting. I am incredibly grateful for the advice provided by Debra Effeney; and found your firm’s services to be exceptionally professional. If we needed to consult a family lawyer in the future, we would have no hesitation in reconnecting with your firm.

K.M., Paddington
I was guided through a really difficult time with expertise of Michael Lynch Family Lawyers. I am more than happy with the outcome of mediation.
J.H., Windaroo
Lovely to deal with and provides a balanced view in what are very difficult circumstances.
A.C., Morningside

You, guys, provide extraordinary service.

A.O., North Brisbane

I just wanted to get in touch to say thanks for helping me get through my custody and settlement. Thanks again to you and your staff. You have had a significant positive impact in my kids’ lives!

B.S., Brisbane
Your newsletters are great, I appreciate them.
K.B., Carina
I like that my lawyer treated me like a friend and kept jargon to a minimum. She was easy to contact and kept me informed.
L.R., Samford

We had such a positive experience with Michael Lynch Family Lawyers, and we highly recommend their services. Meticulous attention to detail, attended quickly to every additional request we made, and made sure we always knew exactly where we were every step of the way. Our lawyer took what was such a stressful and emotional time for our family, and made the process feel so smooth and seamless.

N.B., Brisbane

I’m very glad ‘Michael Lynch Family Lawyers’ is my lawyer and not the other side’s solicitor.

S.S., Hamilton
So pleased to have had a good, sound and knowledgeable firm.
C.W., Brookfield

At Michael Lynch Family Lawyers I got professional and ‘no-nonsense’ advice, costs were within quoted amounts and my matter was resolved quickly – well done!

L.R., Ascot
Amy, thanks very much to you and your team. Throughout my dealings with MLFL I have been continually impressed with your level of professionalism and, in particular, your understanding of circumstances and the articulate way you conduct yourself. I was completely satisfied with today’s outcome and without your experience and expertise in family law I doubt that the result would have been achieved.
M.R., West End

Thank you very much to everyone at Michael Lynch Family Lawyers. Thank you for helping me get my life back and make a fresh start. To have that fresh start without fear and anxiety is priceless.

A.A., Perth
I was impressed by my solicitor’s attention to detail and her concern for me, and that the process was explained to me and that I understood it at all times.
B.W., Chapel Hill

I was very impressed with the initial interview. Everything was well-explained, and the advice was honest about what I should expect.

C.M., Morningside