The Cost of Delay – Receiving an Inheritance and Family Law Matters
An inheritance is often an intensely personal thing for someone. It is often a time of grief and sadness, because the person you receive the inheritance from is likely a very close loved one whom you have lost. And, if it is a significant inheritance, it can also then mean a really significant help financially. It might mean being able to buy that bigger house you have craved; it might mean paying off debt you have been drowning in or it might mean finally taking your children on that long-awaited holiday you have been promising.
If you are going through a separation, the timing of an inheritance is important. There is often a misconception that an inheritance for the person who receives it. Unfortunately, this is not always the case and timing of when the inheritance is received is very important.
Let’s use a case study to explain our point:
John and Jane have separated. At the time of separation, John moves out and Jane’s elderly, yet active, mum moves in to help Jane through the separation and with caring for the children. John is really struggling with the breakdown of the relationship and is not interested in doing anything about a property settlement. He doesn’t get a lawyer, he doesn’t respond to correspondence, he just makes like an ostrich and plants his head firmly in the sand.
Jane, on the other hand, wants this over and done with. She wants to reach an agreement, formalise it and move on but she’s really focused on saving money where possible, particularly when she’s had friends go through divorce and spent 30K on legal fees and that sounds avoidable to her. After 6 months of getting nowhere with John, Jane’s lawyer suggests seeking the Court’s help because John can’t ignore Court proceedings. Jane hears the word ‘Court’ and shuts down. Sounds way too expensive. So, in goes Jane’s head in the sand as well. John and Jane remain separated, and Jane gets her lawyer to send a few letters but then feels like it is all too hard and leaves it.
Two years pass by and John and Jane are still separated, and nothing has been formalised. In the meantime, the former family home’s value has skyrocketed and unfortunately Jane’s mum has unexpectedly passed away, leaving an inheritance of $500,000 to Jane. Jane is devastated, but all of a sudden, John is interested in pursuing a property settlement. How Jane’s inheritance will be treated will depend upon all of the other facts and circumstances of the matter, however all of a sudden there is a further $500,000 in the pool which is potentially up for division!
If Jane had been willing to take the steps necessary to try and progress the matter more quickly earlier, then there is a possibility the matter could have been finalised before Jane received her inheritance. If that had happened, Jane’s inheritance would have most likely remained Jane’s inheritance and John wouldn’t have been able to make a claim upon it.
In our case study above, we have demonstrated how not delaying advice and pressing a matter in Court can actually save you a significant sum of money. If you have questions about inheritance and how it may affect a family law matter, we’re here to help.
Our experienced team has availability usually see you within a day or so of booking. You can book a free discovery call here or call us at the office on (02) 8379 1835.
We look forward to helping you.
Author: Kalisha Martin, Senior Lawyer at Lagom Family Law
** The information contained in this blog is general and does not constitute legal advice on your particular maner. You should consult a lawyer specialising in family law for independent legal advice regarding your particular circumstances **
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Lagom Family Law is a boutique legal practice lead by Principal Lichee Hogland who strives to achieve the best possible outcome for her clients whilst being approachable and respectful.