By Sharla Stevens
There are often situations where one party will acquire, or inherit, assets in the period after separation, but before property settlement matters have been finalised. How are these assets treated? Do they get included in the asset pool to be divided between the parties or are they excluded?
The recent case of Calvin & McTier  has confirmed that the treatment of property acquired after separation is a discretionary matter for the trial Judge, who may choose to include it in the asset pool or exclude it, depending on the circumstances.
In this particular case, the husband received an inheritance four years after separation. At the time of the trial he had around $430,000 of that inheritance left. The trial Judge included that money in the asset pool to be divided but the Husband appealed that decision, stating it should not have been included. His appeal was dismissed and he was ordered to pay the wife’s costs.
In the event that assets acquired after separation are included in the asset pool, then it may be that an adjustment is made in that person’s favour, to recognise their post-separation financial contributions.
To read the case in full see: http://www.austlii.edu.au/cgi-bin/viewdoc/au/cases/cth/FamCAFC/2017/125.html
If you need legal assistance in relation to a property settlement matter please contact Cristina Huesch, or one of our solicitors, Sharla Stevens or Angela Li, at Alliance Family Law on (02) 6223 2400.
Please note our blogs are not legal advice. For information on how to obtain the correct legal advice, please contact Alliance Family Law.