Can I Keep My Inheritance In A Divorce?
When you get divorced and your property needs to be divided up, what happens to an inheritance? If someone left something behind for just you, not naming your spouse, do you have to split it up along with everything else? The simple answer is no, but there are some mistakes that people can make that allow their spouse to claim a part of their inherited assets. Our Morristown divorce attorneys want to help you avoid these pitfalls.
Is an Inheritance Separate Property?
Simply put, yes. If someone leaves you something and does not mention your spouse, then it is a gift for you and only you. Even when the rest of your property is being equitably distributed during the divorce process, your spouse should not have access to your inheritance.
It is a different story if someone leaves something to both of you. If you are both explicitly named in a will or put on the deed to a piece of property, that is going to be considered shared property. So to sum up, if your father passes away and leaves you a house and $200,000, that is yours. If your father passes away and leaves you and your spouse the house and the money, it is not going to be considered your separate property.
When Can an Inheritance Be Subject to Division in a Divorce?
Even if something is only left to you, there are situations where a spouse can try to make a claim to your inheritance during a divorce. This is why you have to be careful and avoid:
Commingling: This is a common mistake and a costly one. If you inherit money and place it in a joint account that you share with your spouse, this is considered commingling. Your inheritance was separate, but now you have mixed it with shared money. Even if you only put the money in your joint account for a short time, this can give your spouse an excuse to try and claim a piece of it in the divorce.
Conversion: Another common mistake? Putting your spouse on the deed or title of an inherited property is a bad idea. There is really no reason to do it, even if you plan to leave your spouse this property when you pass away. If you divorce and their name is on an inherited asset, they can try to grab their share of it.
Letting your spouse care for an inherited asset: Let’s say you inherit a beach house, but you never use it or really pay attention to it. Meanwhile, your spouse cares for the property, updates it, and increases its value. In a divorce, they can convincingly claim that they contributed to the asset and that they should receive a portion of its increased value.
Talk to Our Divorce Attorneys
If you want to learn more about the property division process and how you can protect inherited property, contact Lazor Rantas, PC. We can stand up for your interests during negotiations and help you avoid mistakes that could put your assets up for grabs.
