Australia's leading provider of affordable DIY legal kits
Call our Customer Care Specialists on 1300 728 200
   

Legal Forum

Welcome to the FREE AussieLegal Forum

This FREE legal forum is supported by participating lawfirms in your local area.
The information contained in this public forum, and any comments made by the administrators, it's appointed mediators, or members of the public are of a general nature and may not be regarded as financial or legal advice in any way. We recommend that you seek formal advice from a practicing solicitor or licensed financial advisor regarding your particular situation. By registering to use this forum you meet the above criteria and agree to abide by all of the above rules and policies.

To be sure we provide you with the most relevant information to your state, please let us know which state you your legal matter resides in:

ACT  NSW  NT  QLD  SA  TAS  VIC  WA  

AussieLegal recommends this law firm:

  FAQ FAQ  Forum Search   Register Register  Login Login

Inheritance used on home purchase

 Post Reply Post Reply
Author
  Topic Search Topic Search  Topic Options Topic Options
Norm View Drop Down
Newbie
Newbie


Joined: 15/May/2017
Location: Australia
Posts: 2
  Quote Norm Quote  Post ReplyReply Direct Link To This Post Topic: Inheritance used on home purchase
    Posted: 15/May/2017 at 18:02
My ex used her inheritance to part fund a property with me. I made land and home loan payments from my wage. The property sold later at a loss. The sale funds went into our joint account. Now my ex wants her full inheritance reimbursed. Can you only spend it once? Is it still called inheritance money now or joint/ marital money?

Thanks for some light on this please.

Norm

Eddy View Drop Down
Senior Member
Senior Member


Joined: 14/December/2012
Location: Australia
Posts: 107
  Quote Eddy Quote  Post ReplyReply Direct Link To This Post Posted: 16/May/2017 at 12:41
Where the money initially came from is now irrelevant. The fair thing to do would be pro-rata the split based on what each of you put in eg if she put in $300,000 and you put in $100,000 but the property sold for $300,000 - she would get back 3/4 of that ($225,000) and you get back 1/4 ($75,000) since that's the relative amount you each put in.

Of course the law courts may see things differently based on more detailed considerations.

Norm View Drop Down
Newbie
Newbie


Joined: 15/May/2017
Location: Australia
Posts: 2
  Quote Norm Quote  Post ReplyReply Direct Link To This Post Posted: 16/May/2017 at 14:23
Thanks for replying, not sure if I explained myself properly.

Around 8 years ago, we built a holiday house for $168,000. My now ex-wife received an inheritance of around $90,000 that she put towards that cost. Along with a loan of $80,000 for the remainder of the cost of the house and also a loan of 130,000 for a block of land.

Only my wages serviced both the loans. When we eventually sold the property it was sold at a loss.

As I have suffered a loss on all the repayments I made, would I be correct in saying that her contribution should also wear a percentage of that loss?

My financial contribution by way of repayments was 60% and her inheritance was 40%

We have since divorced and are doing a financial settlement, she and her lawyer are making a claim that her inheritance greatly increased our current assets and are saying she is entitled to all of her $90,000 back.

Would really appreciate some insight into this
Thanks
norm

citizen-joe View Drop Down
Senior Member
Senior Member


Joined: 09/October/2005
Location: Australia
Posts: 275
  Quote citizen-joe Quote  Post ReplyReply Direct Link To This Post Posted: 17/May/2017 at 00:27
The fact that your wages serviced the loans while you were married is irrelevant. There were things that she was doing that contributed to the marriage that may not have a direct monetary value. Income from members of the partnership go into the family pool while expenses come out of it, It is not valid to claim that the financial pool is anyone's in particular, it is owned by both of you.

Eddy View Drop Down
Senior Member
Senior Member


Joined: 14/December/2012
Location: Australia
Posts: 107
  Quote Eddy Quote  Post ReplyReply Direct Link To This Post Posted: 17/May/2017 at 12:46
Originally posted by Norm

....We have since divorced and are doing a financial settlement, she and her lawyer are making a claim that her inheritance greatly increased our current assets and are saying she is entitled to all of her $90,000 back.....


You could argue that is she hadn't put in that money you may not have taken out that loan and may not have ended up with a loss - she too was a factor in the loss. It's a case of "would of - could of - should have" and you can only speculate what the alternative outcomes would have been and how good or bad her choice was.

End of the day you have a shared financial balance to split between you and her and it sounds like it's going end in court since she wants back more than she is entitled to (I think the $90k is her top limit starting point, to be negotiated down from there). Unfortunately, if it goes that far, the courts will decide the split and it may not necessarily seem fair.

webbrowan View Drop Down
Newbie
Newbie
Avatar

Joined: 12/May/2016
Location: Sydney
Posts: 19
  Quote webbrowan Quote  Post ReplyReply Direct Link To This Post Posted: 23/May/2017 at 13:17
I think this situation does not really need expert advice to determine where does that amount of finance belong to now. Since your ex has used her inheritance as a form of investment for the joint-account house, she cannot expect to have it reimbursed back fully into her inheritance. From the first day she withdrew funds from her inheritance, those funds should have stopped being categorized under inheritance as a whole. That is rather straightforward and makes complete sense.
Best Regards
Rowan Webb

 Post Reply Post Reply

Forum Jump Forum Permissions View Drop Down

Want to save money?

Check out our list of do-it-yourself legal kits.

Need formal advice?

Let us help you find a lawyer who specializes in your particular area of law.

Need further information?

Visit our legal forum where you can ask questions and search for similar topics.