The division of assets can be one of the most critical issues in a divorce. You might be wondering if you must share the inheritance you received with your soon-to-be ex-spouse. Understanding property division rules and how they apply to inheritances is essential. Doing so can help you make informed decisions.
The general rule
In most cases, inheritances count as separate property. If you inherited money or assets from a relative, you may get to keep it all to yourself. However, there can be exceptions to this rule.
When inheritances become marital property
Your inheritance might become part of the marital property pool in certain situations:
- If you mix your inheritance with marital funds (for example, depositing money you inherit into an account you share with your spouse), it may no longer count as separate property.
- It might be marital property if you use the inheritance to benefit the marriage (such as renovating your shared home).
- If you add your spouse’s name to inherited property, they could consider it a gift to the marriage.
Fortunately, there are ways to keep your inheritance from being subject to property division.
Protecting your inheritance
To keep your inheritance separate from marital property, you can consider these steps:
- Keep assets you inherited in an account under your name only
- Do not use inherited funds for joint expenses or purchases
- Document the source and use of inherited assets carefully
It is important to note that laws vary by state. Consulting an attorney for advice specific to your situation may be beneficial. They can guide you through the complexities of property division and help protect your interests.
While inheritances are generally safe from division in a divorce, how you handle them during your marriage can make a big difference. By understanding these principles and taking appropriate precautions, you can better protect your inherited assets if your marriage ends in divorce.