Updated 20 August 2020
The simple answer to this question is – yes.
Generally any property that is acquired after separation and before a final property settlement will be included as an asset in the property pool available for distribution even if the asset is held in only one party’s name.
A recent case examined this question in the context of an inheritance by the husband of $715,000.00 from his late brother’s estate after separation.
Whilst the parties had separated almost five years prior to the husband receiving the inheritance they had not applied for a divorce nor finalised their property settlement at the time the inheritance was received.
The court included the inheritance in the property pool that was available to be distributed to the parties in their property settlement. This case serves as a warning that just because assets are acquired after separation does not mean that they are immune from the property settlement process.
It is not uncommon for clients who see us to have acquired significant assets after separation, such as purchasing a new house.
We recommend that parties seek legal advice and formalise their property settlement early after separation to prevent situations like the above from arising. Contact our Cairns family lawyers today to obtain strategic legal advice on your family law property settlement.