A common misconception amongst people who are going through a
property settlement is that property, in particular inheritances,
can automatically fall into a 'protected category' and are
separate to the asset pool available for distribution.
So how is an inheritance treated in property settlement?
Nicholson CJ, Nygh and Tolcon JJ addressed the issue of whether
inheritances should be treated different from any other property in
which parties have an interest in the case of
Bonnici1. The answer, is that it must be
assessed on a case by case basis and depend on the circumstances of
that particular case.
In assessing matters on their individual facts and
circumstances, largely the deciding factor will often relate to the
timing of receipt of the inheritance in question or the impact that
the inheritance has on the size of the asset pool available for
distribution.
