Divorce has long been recognized as a major financial turning point, but its impact on inheritance and estate planning is often overlooked. On BNN Bloomberg, Shulman & Partners LLP shed light on how inheritances can complicate separation, spousal support, and long-term financial planning. The conversation explored common misconceptions around whether inheritances are automatically protected, how timing matters, and why decisions made during a marriage can have lasting consequences after separation. For families navigating divorce in Ontario, understanding how inheritance is treated under family law is essential to avoiding unintended financial exposure and future disputes.
“If you are receiving an inheritance during the course of the marriage, you are able to claim it as an exclusion, but you have to be able to trace it and you definitely don’t want to intermingle that asset with your spouse’s funds.”
— Insights shared by Shulman & Partners LLP
The interview focused on how inheritances interact with divorce and spousal support under Ontario family law. A key theme was timing. When an inheritance is received during a marriage, it can generally be excluded from property division if certain conditions are met. Tracing the inheritance back to a will or estate is critical, and keeping those funds separate is essential. Once inherited assets are mixed with joint funds or used toward the matrimonial home, the exclusion may be lost entirely.
The discussion also addressed inheritances received after separation or divorce. While the inheritance itself is not automatically shared, problems can arise when that money is invested. Rental income, interest, or dividends generated from inherited funds may be treated as income, which can affect spousal support obligations. This applies to both payors and recipients. A payor who generates new income from an inheritance may face increased support payments, while a recipient may be expected to invest inherited funds responsibly when assessing need.
Another important takeaway was the misconception that inheritances are always untouchable. Without proper planning, even assets intended to stay within one family can influence support calculations or be indirectly shared. This is why marriage contracts or post-nuptial agreements were highlighted as practical tools. These agreements can clarify how inheritances will be treated for property and support purposes, reducing uncertainty and conflict later on.
The conversation emphasized proactive planning and communication. Many people marry young without considering inheritance or estate issues, only to confront them years later. Seeking legal advice early, especially when an inheritance is anticipated or received, can help couples understand their rights, obligations, and options before financial decisions are made.
Watch the full BNN Bloomberg segment here.
This media appearance is part of Shulman & Partners LLP’s ongoing contributions to Canadian family law discussions. Explore more of our media features in our In the Media archive.