CHAPTER 5 – WHEN YOUR MOTHER IN LAW IS AN ASSET
Since discovering that Jack was cheating on her, Jill decided that she wanted to move out of their shared home in St Leonards. However, they had been together for three years, and Jill had made many financial contributions to the relationship and she had helped to buy the home.
Jill started a case against Jack in the family court to make her share of their assets. She thought that she would receive at least half of their St Leonards home, which was worth 1.2 million.
After being separated for four months and after Jill had started the case, Jack’s father died, leaving him an inheritance of $4 million. Jill wants to know whether she will receive any of this money, as she spent a lot of time at Jack’s Dad’s house caring for him during the relationship, when he was very sick.
Given the above facts it appears that Jill is likely to receive a small share in the inheritance as she cared for her father in law before he died.
In a recent case that dealt with this issue the husband received an inheritance from his father four years after separation but prior to the settlement of his divorce. His wife received 35% of the property, which would have been 50% if not for the inclusion of the inheritance in the calculations.
Q and A
Q: What happens if you receive the inheritance before the relationship begins?
A: Whether the money from your inheritance is considered to be a part of the Asset Pool may depend on whether you banked it in the joint bank account and used it to contribute to household expenses. This is called co-mingling, and will likely mean that it will be divided upon separation.
Q: What happens if you receive the inheritance during the relationship?
A: The same is true as if you receive your inheritance prior to the relationship. If the court finds that the funds were co-mingled, then they will be divided upon settlement.
How can E Berman & Co Solicitors help me?
E Berman & Co Solicitors is a Chatswood law firm that has been providing quality legal services to the public since 1984. Contact our office on 9412 2493 – we’re more than happy to have a quick chat! You can also visit us on our website for more information.
The information, including statements, opinions, documents and materials contained in this Chapter is intended for general information only. The Information does not take account of any specific needs you may have, or your specific circumstances, and it is not intended to convey legal advice. If you rely on or use any information provided in the Newsletter you do so at your own risk. If you intend to rely on the information as legal advice you should contact us first, or seek your own legal advice before relying on it.
© E Berman 2017
Contact Errol on 9412 2493