Is Inheritance Subject to Property Division in a New Jersey Divorce?
Divorce proceedings in New Jersey involve the complex process of equitable distribution, where marital assets are divided. However, when one spouse has received an inheritance, it raises questions about whether that asset is subject to property division. Understanding how New Jersey law treats inherited property is important for anyone going through a divorce. Read on and work with a skilled Morristown property distribution attorney for more information today.
What is Inheritance?
Inheritance refers to the assets, property, or money passed on to an individual after the death of another, typically a family member or loved one. The assets are transferred according to the terms of a will or by state intestacy laws if no will exists. Almost any asset can be inherited, including real estate, bank accounts, stocks, retirement funds, jewelry, artwork, and personal belongings.
Is NJ an Equitable Distribution State?
Yes, New Jersey is an equitable distribution state when it comes to property division in divorce proceedings. This means that during a divorce, the court aims to divide marital assets fairly, but not necessarily equally, like a 50/50 split. The term “equitable” means a division that is just and reasonable, based on a variety of factors considered by the court, such as the length of the marriage, the economic circumstances of each spouse, and contributions made to the marriage.
It’s important to understand that equitable distribution only applies to marital assets, meaning property acquired by either or both parties during the marriage. Any property deemed separate property is considered owned by only one spouse and is generally not subject to division.
Is Inheritance Subject to Property Division in an NJ Divorce?
In New Jersey, inheritance is generally considered separate property and is therefore not subject to equitable distribution during a divorce. Separate property includes assets owned by either spouse prior to the marriage, as well as gifts or inheritances received by one spouse during the marriage.
The idea is that the inheritance was a transfer of wealth specifically to one party, not acquired through the joint efforts of the marriage. Therefore, as long as the inherited assets remain separate and are not commingled with marital funds, the inheriting spouse retains ownership. However, it is important to note that the circumstances surrounding how inherited property was treated can sometimes lead to a portion of its value being subject to division.
When Can Inheritance Be Divided in a Divorce?
Inheritance, while generally separate property, can become subject to equitable distribution if it is commingled with marital assets. Commingling occurs when separate property is mixed with joint funds or used for the joint benefit of the marriage, making it difficult to trace its separate origin. For example, depositing inherited money into a joint bank account or using inherited funds to pay for a marital home constitutes commingling.
It’s also important to note that even if the original inheritance remains separate, any appreciation in the value of the asset during the marriage may be considered a marital asset and subject to division, depending on the circumstances. Understanding the state’s laws regarding inheritance and property distribution is crucial to protect your rights.
