Family Law: Windfalls: Inheritances and Lottery Winnings

So, you’ve just received an inheritance. Or perhaps, you’ve won the lottery! When you are involved with a family law matter, these sorts of windfalls can greatly impact your circumstances. A windfall is a sum of money which you have received but not worked for per se. The impact of a windfall will depend on when it is received.

 Before Separation

If you receive your windfall before the relationship commenced or even during the relationship, it is usually considered a financial contribution to the relationship. If you have made a greater financial contribution to the relationship as a result of this windfall, it is likely that you’ll receive an adjustment in the split of the property pool in your favour. However, any financial contribution may also be offset by non-financial contributions and other factors. In addition, financial contributions to the relationship are of less importance the longer the sum contributed is in the combined asset pool.

 After Separation

In a family law property settlement, the asset pool of the relationship is determined as at the time of the trial. The property pool is not valued as at the date of separation. Consequently, if you have received a windfall after separation, it may still be included in the property pool. However, if you are in this situation, we recommend that you speak to a lawyer since your specific circumstances will play a big part in whether the windfall is included in the property pool. In situations where a couple have separated and started to live significantly separate lives before receiving a windfall, it is likely that the windfall may be excluded altogether even if the couple has not attended court.

 The area of windfalls is not a cut and dry area. There are many variables that may influence your position. As such, we highly recommend seeking legal advice if you have received a significant windfall and wish to know your rights and/or obligations in relation to it.

If you have a family law matter, concerns about your windfall or questions about family law and separation in NSW and want to find out more please do not hesitate to contact us on 9688 6023 or email us at info@franklegal.com.au.

This article is provided to the reader for general information. It is not legal advice. It was written by Andrea Spencer & Emily Graham and edited by James Frank.

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Family law, Separation, Family Law Lawyer, Financial considerations, financial impact, child support, children