Will I have to share my inheritance if my relationship ends?

Family Law: 26 May 2026

Author: Abbey Hoolahan - Our People

Inheritance and separation can be complex, especially when family money feels personal. In family law, inherited assets aren’t always protected in a property settlement. Understand the key factors that determine whether an inheritance is shared.

Inheritance and separation: what happens to family money? An inheritance often arrives at an emotionally difficult time. It may come after the death of a parent, grandparent or close family member, and it may feel deeply personal to the person receiving it.

But if a couple is considering separation, or is already going through a property settlement when the inheritance arrives, one of the first questions people often ask is: does inherited money stay with the person who received it, or can it be considered part of the relationship’s property pool?

The answer is not always straightforward.

In family law, an inheritance is not automatically protected simply because it came from one person’s family. It may still be relevant to a property settlement, depending on the timing of the inheritance, the length of the relationship, how the money was used (for example to pay off a mortgage), the other financial contributions made by each person during the relationship, and whether there are enough other assets available to reach a fair outcome.

Our firm regularly comes across matters whereby our client or their former spouse have received early inheritances from family members during their relationship, or subsequent inheritances once the relationship has ended.

We have seen many different situations which clients ask us about – for example

• “I am thinking about separating, but a family member has just died. What happens to my inheritance?”
  
  
• “We have separated, but our property settlement is not finalised. Can my former partner claim part of my inheritance?”
  
  
• “My divorce was finalised last year, and I have now received an inheritance - does my former partner still have a claim over that?”
  
  
• “I was in a long relationship and helped care for my former partner’s parents. Do I have any claim if they later leave an inheritance to my former partner?”
  
  
• I am in my in-laws Will, but my relationship is no longer viable, and I am going through the process of a divorce – am I cutting myself out of the Will via the divorce process?

These are understandable questions, but there is no single rule that applies to every case. We know that our clients want straightforward answers, and we do our best to provide these, but it is vital to get tailored advice because we have found that every single relationship and combination of factors is different.

Everything from income during the relationship earned by both parties, expenses incurred caring for older family members, and whether the couple share children (in the case of inheritance from a grandparent) all can make an impact. These become factors which may be negotiated after an inheritance – and in the case where the couple cannot agree - may be factors which are argued in Court to settle the matter.

A useful case example in this area is Bonnici v Bonnici [1991] FamCA 86, which tells us, that it is never safe to assume that such inheritance will be “protected” or automatically excluded from being considered in the combined matrimonial pool. 

In Bonnici, the parties were married for a period of 17 years and separated under one roof on 1 January 1990. Shortly prior to the end of the marriage, the husband received a late inheritance. This included $20,000 from his uncle’s estate in 1987, a substantial sum from his late mother’s estate within a year of separation.

The question for the Court in this case, was what weight, if any, the husband’s substantial assets that he received should be given, given the timing that they came into his hands.

In making its findings about how the substantial assets should be categorized as, the court stated that these assets were not a “resource” but instead were clearly property.

When making this assessment, the Court has made it clear that this assessment is dependent upon the circumstances of the individual case before the Court.

In this case, the Court had to work out whether it could find that the parties had contributed equally could be justified given the timing of the latter sums. Additionally, this involved looking at whether there are “ample funds” available in the pool to give rise to an appropriate property settlement and fair and just outcome, without having regard to the inheritance funds received by the husband.

The Court subsequently held that funds received by the husband should not be brought into account.

The reasoning for this was because, “[the wife] cannot be regarded as contributing significantly to an inheritance received very late in the relationship and certainty not after it has terminated, except in very unusual circumstances.” Noting that such circumstances include things just as caring for the testator prior to death. Circumstances of which did not apply in this case.

If the facts were different in Bonnici, and if for example, “there had been no other assets than the husband’s inheritance, but the wife had, as his Honour found, clearly carried the main financial burden in the support of a family and also performed a more substantial role as a homemaker and parent than the husband, then it would clearly be open and indeed incumbent upon a Court to make a property settlement in her favour from such an inheritance.”

In other words, ordinary contributions during a relationship, including homemaking and parenting (by either partner), do not automatically give one partner a claim over an inheritance received very late in the relationship.

However, the Court may have a different view where there is a more direct connection, such as caring for the person who left the inheritance (testator), helping preserve an inherited asset (e.g. helping to maintain an inherited property), or where excluding the inheritance would make the overall settlement unfair.

The overall takeaway from this case example, is that no assumptions can be made when it comes to inheritances, and a Court will always look at the facts of the individual case before it to determine what is the most fair and just outcome.

If you or someone you know needs advice, we encourage you to reach out to our Family Law team at Aitken Partners. We specialise in handling these difficult and complex matters with compassion and discretion to help you get a fair outcome.