March 9, 2023
Some couples persevere through the challenging phases of marriage and come out the other side wanting to share everything. It’s unlikely that any of these couples will ever have to worry about protecting their individual inheritances from one another. Yet, partners whose marriages look like they’re on the verge of dissolving may see things very differently. When a divorce becomes imminent, it can be too late to protect inheritances from a spouse, even if the inheritance was never meant for anybody except the receiver.
Community property states and equitable distribution states have different rules governing how marital assets are divided and who keeps what. Like the vast majority of the United States, Florida follows the principles of “equitable distribution.” During a divorce, assets in a community property state are divided equally, but in an equitable distribution state, they are divided fairly.
But it might be hard to figure out what’s fair in a tense divorce. A judge will decide how to divide their property evenly depending on a number of variables if the couple can’t agree on a settlement. That said, Florida law distinguishes between marital property and independent property, such as an inheritance.
Unless otherwise agreed upon by both parties, all money and possessions earned or obtained by either spouse during the marriage are considered marital property. To further clarify, anything you have acquired during your marriage is considered marital property, including any income you made, any vehicles purchased with funds from your joint bank account, any properties purchased, and any retirement funds to which either of you contributed. Possessions that are kept apart from one another include:
- Personal injury awards often include components that are treated as separate property. Awards for pain and suffering are regarded as distinct property, whereas any component that reimburses you for lost wages is deemed marital property.
- Any property purchased by one spouse with funds from the other’s separate assets is deemed the owner’s separate property.
- All property designated as separate in a prenuptial or postnuptial agreement is treated as such.
- All inheritances obtained either before or after the marriage are regarded as distinct property until they are combined with other assets during the marriage.
- Any property obtained in one spouse’s name during the marriage, purchased with inherited money, and never utilized for the other spouse’s benefit or titled in the other spouse’s name would most likely be regarded as separate property.
- Property acquired by one spouse as a gift either before or during the marriage but never transferred to the other spouse’s name is termed distinct property.
- Separate property that includes any assets that were owned by either spouse before the marriage but have remained in the sole names of their respective owners throughout the marriage.
To What Extent Can an Inheritance Be Shared between Spouses?
Although it might seem obvious that any gifts or inheritances received before or during the marriage would remain solely in the original recipient’s possession, this is not always the case after a divorce. Let’s say your Aunt Jane bequeathed you a beach house in California. You and your spouse not only make frequent use of the house for holidays during your marriage, but you also make improvements to the house using money from the marriage’s joint finances. The court presiding over your divorce may decide that the beach house is community property because both of you spent time there and money from the marriage on improvements.
Due to the mixing of funds throughout the marriage, the beach house may now be considered community property as well as distinct. It’s possible that this means you get three-quarters of the house, and your partner gets a quarter. That is to say, if the couple had spent money from the marital estate improving the beach house, the non-inheriting partner would be entitled to some of those improvements.
Conclusion
There are several ways to keep inherited assets during a divorce. The most important thing is to be proactive and plan ahead. Talk to an attorney about your specific situation and what steps you can take to protect your assets. Be honest with your spouse about your assets and devise a plan that works for both of you. If you cannot come to an agreement, the court may decide for you.
If you are looking for well-trusted and experienced attorneys specializing in Divorce and Dissolution of Marriage in Jacksonville, FL, look no further than our experts at The Dorsey Law Firm. We are the top Jacksonville attorneys, and we offer our services in cases related to family law, criminal law, and personal injury. Contact us today, and let us handle your legal concerns for you.
