A History Of Growing Trust In Kentucky

How inheritance can be labeled marital property in a divorce

On Behalf of | Apr 26, 2019 | divorce

For the most part, any inheritance received while you are married will be considered separate property when you file for divorce. This means that you will not have to divide this money with your spouse as part of the division of assets. But, there are some circumstances where an inheritance can wind up as marital property when divorcing in Louisville.

The first circumstance that turns inheritance into marital property is if you decide to deposit the money into a joint account with your spouse. The minute you deposit the money into a joint account, that money becomes marital property. You can argue that the money was your inheritance, but you should have kept it in a separate account.

The second circumstance is if both you and your spouse are named as joint beneficiaries for a chunk of money from a family member. This means that both of you will have access to the money and it should be deposited into a joint account. When both spouses inherit money from the same person it is automatically considered marital property and must be divided equally in a divorce.

The third circumstance occurs when you use inheritance money to make improvements to your marital home. The money that is used to make the improvements adds value to the home. The added value must be considered marital property and divided equally when you get a divorce.

As you can see, there are certain circumstances that can happen in life that turn separate inheritance into marital property. Make sure you know the situation prior to filing for divorce so you are not surprised at any ruling a judge might make against you.