I Inherited Property in Sri Lanka. Can My Ex Claim It If We Separate in Australia?

If you are living in Australia and have inherited a house, land or other property in Sri Lanka, you may be wondering:

“This property came from my family in Sri Lanka. If my spouse and I separate in Australia, can they claim part of it?”

It is a question that can cause real concern, particularly where the property was inherited from your parents or grandparents or has been in your family for generations.

There is no simple rule that says an inheritance is automatically excluded from an Australian property settlement.

But there is also no rule that says your former spouse automatically receives half of your inheritance.

What happens depends on the circumstances of your relationship, the inheritance and your overall financial position.

I inherited a house or land in Sri Lanka. Can my ex claim it if we separate in Australia?

Inherited property can be relevant when an Australian property settlement involving Sri Lankan property is being considered.

Under Australian family law, the parties’ existing legal and equitable interests in property and their liabilities are identified. Contributions are then considered, together with relevant current and future circumstances, before determining whether the proposed outcome is just and equitable.

The Federal Circuit and Family Court of Australia specifically identifies gifts and inheritances from family members when explaining indirect financial contributions.

That means an inheritance should not simply be treated as irrelevant because it came from your family.

At the same time, it does not follow that your former spouse automatically receives a particular percentage of it.

The circumstances matter.

My parents gave me the property in Sri Lanka. Why should it be relevant to my Australian property settlement?

This is often the real concern.

You may think:

“My parents worked for this property. My spouse did not. Why should my spouse have anything to do with it?”

The source of the property is relevant.

An inheritance or gift from your family may be an important contribution on your side of the relationship.

However, an Australian property settlement considers the parties’ circumstances as a whole rather than applying a rule that every asset must simply be divided equally.

The timing and value of the inheritance, the length of the relationship, the parties’ other contributions and their current and future circumstances may all become relevant.

Does my ex automatically get 50% of the property I inherited in Sri Lanka?

No.

There is no automatic Australian family law rule that your former spouse receives 50% of an inheritance. A property settlement is not automatically 50/50.

Likewise, there is no automatic rule that inherited property must always be completely excluded.

Property settlements depend on the circumstances of the particular relationship.

That is why advice given to one person about an inheritance may be very different from advice given to another.

What if I inherited the Sri Lankan property before I got married?

The timing of an inheritance can be important.

If you inherited a property before the relationship or marriage began, that may form an important part of the history of your contributions.

But timing is not the only consideration.

For example, the length of the relationship, what happened to the property during the relationship, other contributions made by each party and the parties’ current and future circumstances may also be relevant.

You should therefore not assume that “I owned it before marriage” automatically answers the property-settlement question.

What if I inherited the property while we were married?

An inheritance received during the relationship may also be relevant when contributions are assessed.

Important factual questions may include when the inheritance was received, its value, what happened to the property afterwards and the broader financial history of the relationship.

The treatment of an inheritance received during a long relationship may involve different considerations from one received in very different circumstances.

What if I inherited property in Sri Lanka after we separated?

This can raise another important question:

“We had already separated when I inherited the property. Why should it have anything to do with my ex?”

The timing may be highly relevant, but you should not assume that an inheritance received after separation can automatically be ignored.

Property settlement requires consideration of the parties’ existing property interests and financial circumstances, together with the relevant contributions and current and future circumstances.

If you receive or expect to receive a significant inheritance around the time of separation or before your property settlement is finalised, obtain advice about your particular circumstances.

The Sri Lankan property is only in my name. Does that make a difference?

It can be relevant, but sole ownership does not necessarily mean that the property is outside the Australian family law process.

Australian property settlement is not confined to assets registered jointly.

The Court identifies existing legal and equitable rights and interests in property belonging to either or both parties.

If a house or land in Sri Lanka is registered in your name, tell your Australian family lawyer about it and provide the relevant ownership documents.

What if the house or land has been in my family in Sri Lanka for generations?

For many Sri Lankan families, inherited property is not viewed simply as an investment.

A family home or parcel of land may have passed from grandparents to parents and then to you. It may have considerable emotional and family significance.

Those circumstances should be explained to your lawyer.

However, the fact that property has been in your family for generations does not, by itself, mean that it can simply be ignored when an Australian property settlement is being considered.

Its history, ownership, value and the circumstances in which you acquired it need to be understood properly.

Do I have to tell my ex about property I inherited in Sri Lanka?

Australian family law imposes financial disclosure obligations in property and financial matters.

Do not assume that property can be left undisclosed because:

  • it is in Sri Lanka;
  • your former spouse does not know about it;
  • it came from your parents;
  • it is registered only in your name; or
  • you believe it should not form part of the final settlement.

Read our guide on whether you need to disclose property you own in Sri Lanka in an Australian property settlement.

If you are uncertain about whether a Sri Lankan asset or interest must be disclosed, obtain legal advice rather than deciding to leave it out.

My ex has never contributed to my Sri Lankan property. Does that mean they cannot make a claim?

Not necessarily.

Property settlement does not involve looking at each asset separately and asking only who paid for that particular asset.

The Court considers relevant financial and non-financial contributions and contributions to the welfare of the family, together with current and future circumstances.

The fact that the inheritance came entirely from your side of the family may be important, but the overall circumstances still need to be considered.

How will my house or land in Sri Lanka be valued for an Australian property settlement?

This can become a practical issue in Australia–Sri Lanka property matters.

You may have:

  • a Sri Lankan government valuation;
  • a local market valuation;
  • a value contained in inheritance or testamentary documents;
  • an estimate from family members; or
  • no recent valuation at all.

Those figures may be very different.

Where the value is material or disputed, appropriate valuation evidence may be required.

Currency conversion may also need to be considered when the parties’ overall financial circumstances are expressed in Australian dollars.

What documents should I get from Sri Lanka?

Depending on your circumstances, relevant documents may include:

  • deeds or title documents;
  • testamentary documents;
  • probate or administration documents;
  • documents showing how you inherited the property;
  • current valuation material;
  • documents relating to any income produced by the property; and
  • other documents establishing your legal or beneficial interest.

If relevant documents are in Sinhala or Tamil, appropriate English translations may be required depending on how the documents are to be used.

Do not incur unnecessary expense obtaining documents or translations without first discussing what is actually required for your matter.

Can an Australian court deal with property that is physically in Sri Lanka?

Overseas property can be relevant to an Australian property settlement.

However, where an asset is physically situated in another country, additional practical and legal questions can arise, including ownership, valuation, documentation and the practical implementation or enforcement of Australian arrangements affecting the overseas asset.

That is one reason Australia–Sri Lanka property matters should be identified as cross-border matters from the beginning.

Should I get Australian or Sri Lankan legal advice?

The answer may sometimes be both.

Your Australian property settlement is governed by Australian family law.

But if an important asset is located in Sri Lanka, there may also be Sri Lankan questions concerning title, inheritance, documentation, valuation, transfer or implementation.

The important point is to identify the cross-border issue early rather than reaching an Australian settlement first and only later asking whether it can practically be implemented in Sri Lanka.

I have inherited property in Sri Lanka and I’m separating in Australia. What should I do?

Do not make assumptions that:

“It came from my parents, so my ex cannot touch it.”

Equally, do not assume:

“I’m separating, so my ex automatically gets half of my Sri Lankan inheritance.”

Neither approach properly reflects how Australian property settlement works.

Get advice based on your actual circumstances.

Discuss your circumstances with AustraLanka Lawyers
AustraLanka Lawyers assists clients with Australian family law matters involving Sri Lankan circumstances, including property settlements involving houses, land, inheritances and other interests in Sri Lanka. Start an enquiry, call 0423 469 407 or email miyuru@australankalawyers.com.au.

This article contains general information only and is not legal advice. Family law outcomes depend on the individual circumstances of each matter.

Frequently asked questions

My mother left me a house in Sri Lanka. Can my husband claim it in Australia?

There is no automatic rule that your husband receives part of the house simply because you separate. However, the inheritance may be relevant to an Australian property settlement. The timing and value of the inheritance, contributions during the relationship and the parties’ current and future circumstances may all need to be considered.

My father gave me land in Sri Lanka before I married. Is my wife entitled to any of it?

Property received before marriage can be relevant when contributions are assessed, but the date you received it does not by itself determine the final outcome. The overall history and circumstances of the relationship need to be considered.

I inherited property in Sri Lanka after we separated. Do I still have to disclose it?

Do not assume that a post-separation inheritance can simply be ignored. Financial disclosure obligations and the relevance of the inheritance should be considered in the circumstances of your particular property matter.

The Sri Lankan deed is only in my name. Can the property still be considered in Australia?

Yes, potentially. Australian property settlement is not limited to jointly owned assets. Existing legal and equitable interests held by either party are relevant to identifying the parties’ financial circumstances.

My ex never paid anything towards my Sri Lankan property. Can they still make a claim?

The source of the property and the parties’ contributions are relevant, but Australian property settlement does not simply divide each asset according to who paid for it. The parties’ overall contributions and current and future circumstances need to be considered.

Do I have to disclose my Sri Lankan inheritance if my ex does not know about it?

Do not conceal or omit relevant financial information because the other party is unaware of it. Australian family law imposes disclosure obligations in property and financial matters.

How do I prove what my inherited property in Sri Lanka is worth?

Depending on the circumstances, appropriate valuation evidence may be required. A government valuation, family estimate and current market value may not necessarily be the same.

Can an Australian court consider a house or land located in Sri Lanka?

Overseas property can be relevant to an Australian property settlement. However, property situated in another country can also raise practical issues concerning ownership, valuation and implementation or enforcement.

Do I need a Sri Lankan valuation for property in Sri Lanka?

That depends on the circumstances and whether the value is disputed or material to the settlement. Obtain advice about the appropriate evidence before commissioning unnecessary valuations.

Should I transfer my Sri Lankan property to a relative before property settlement?

Do not transfer, conceal or restructure property in an attempt to avoid Australian family law obligations without obtaining proper legal advice. Transactions involving property during a family law dispute can create serious legal and disclosure issues.

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