States have divorce laws that govern how to deal with inheritance, joint ownership, and state-fair distribution. The divorce laws of the states generally govern and regulate inheritances and joint property in one state and equitable distribution in another.
In the overwhelming majority of states, inheritance is considered to be property in its own right belonging to the spouse who received the inheritance and it cannot be split in a divorce. In other words, if one spouse receives an inheritance during the marriage, the money or assets received by the spouse are normally split as separate assets and the other spouse can claim the money in the event of divorce. If a spouse receives the inheritance and deposits it into the couple's joint checking account the inheritance is likely to be considered joint property and if the inheritance is used for the couple's expenses it can be used to buy items that are shared by the couple.
When you divorce, it is assumed that each spouse owns most of the assets he or she acquired during the marriage return gifts. A common example of the conversion of an inheritance into marital property is when an inherited spouse mixes or mixes inheritances with marital property. Another example is the deliberate conversion of property when a separated spouse inherits a house and puts the other spouse's name on the deed.
Remember that if you kept your inheritance separate from your spouse during your marriage, in the event of a divorce it will count as your non-marital property. Whether your spouse can claim the inheritance depends on his or her status as separate from the marital assets. Incidentally, the property and assets you have received during the marriage are inheritances that are considered out of wedlock and cannot be divided by the court.
Another thing to consider in order to protect your inheritance in the event of a divorce is signing a separation agreement with your spouse or a pre-marital agreement stipulating that the money from the inheritance will remain your out-of-wedlock property. By protecting your inheritance outside of your marriage, ensure that it is separated from your marital assets in order to avoid any mixing, conversion or non-monetary contributions from your spouse. If you want to keep the inheritance in your sole name in an account, you should consider entering into a marriage contract to protect it with a little more flexibility, but spouses in common law should think about how to protect their inheritance.
If you mix your inheritance and live in a community with a certain property, the state courts will divide the marital assets 50 / 50 after divorce, and your spouse has half of your inheritance. Apart from the fact that the inheritance was acquired during the marriage, it is considered to be property in its own right, and the person who receives the inheritance must retain the funds in the event of divorce. Coming is crucial, because if separate assets are used to benefit the joint marital assets, inheritance is no longer considered separate assets and is subject to division in the event of divorce.
This definition makes things look simple with regard to inheritance, since matters of separation of property that arise in the event of divorce are excluded, including those in which separate property arises and becomes joint property. Some laws allow spouses to protect their separated assets from division if it gets in the way of inheritance. In such states, the law protects the inheritance from the division of the property in the event of divorce if both spouses can bear the burden of proving that the inheritance is separate property.
An inheritance determined by a spouse is considered to be property in its own right and is not subject to division by the court during divorce proceedings. Separate assets include assets acquired by both spouses during marriage, but also gifts received either from one spouse during marriage, and inheritances received from one or both spouses after marriage. Separate assets also include assets and assets acquired before marriage, claims for damages, gifts and inheritances made to a spouse before or during marriage.
If you received an inheritance during your marriage or if you expect an inheritance to come while your divorce is pending, you might be concerned you will have to hand over half of it to your spouse. If you have taken out a loan to pay for repairs or used your income for monthly payments, you have converted your inherited assets into separate inherited assets (marital or joint assets). Even if the spouse convinces the court that he should never share the inheritance, the inheritance rules state that it is not a “joint fund” or a “traced inheritance” that distinguishes between a joint current account and that each spouse can keep the inheritance as his only personal property.
If two people divorce, the question arises as to whether a spouse can claim the inheritance rights acquired during the marriage. Separate joint property can change, and inherited property can be mixed with marital property.
In this scenario, when divorce is imminent, the inherited spouse will come under heavy pressure to convince a judge that the house was never intended as marital property. If there is a mixture and the inherited property is regarded as a joint property it will be a difficult fight with a heavy burden of proof for the spouse who received the property to prove to the court that the mixture was not intended to change the designation of the asset as separate from the community.
As in other matters, wedding and post-marital arrangements reflect the spouses “mutual wishes when it comes to dividing assets and debts in the event of divorce, and they confirm that both spouses agree to retain certain assets and incomes, even if they are separate property.
