Is inheritance from US, to a dual US/Australian citizen living in Australia, community property in Australia?

Question

My son lives in Australia with his wife; They both have dual citizenship (US/Australia) and have separated (to be divorced). She is about to inherit $$ from the US.

1) Is that considered community property in Australia? (EG would my son be entitled to any part of this inheritance?)

2) Could his wife fly to the US, collect her inheritance under California law (which is her sole and separate property), then fly back to Australia, get divorced, and keep the inheritance as sole property?

3) her brother is the executor of their parents estate in the U.S. could he and her stall the collection of her inheritance until after her divorce as a device of keeping it all to herself?

Answer 1

You need to talk to a competent family law lawyer about this. The inheritance is probably protected, but there are no absolute rules in Australian family law. Where she is when she takes delivery of the property will make no difference at all.

One option may (big may) be to commence divorce proceedings in California. If (big if) Californian courts have jurisdiction, Californian law will apply to the division of property.

Delaying the execution of the estate will make no difference as the entitlement has crystallised.

Answer 2

Using slightly lateral thinking; does the money have to come to Australia just now? Could it be discretely placed somewhere outside the reach of Australian courts or tax authority?

Answer 3

the money she is getting has nothing to do with their marriage, it wasn't something they worked for together so why should it be community money

all she has to do is prove they are separated when she gets the money
the money is coming from HER family