One of the most challenging issues when navigating divorce is property division. Deciding who receives which assets are acquired during the marriage can be complex and contentious. Adding inherited assets into the equation often raises even more questions and potential disputes. So, what happens when an inheritance enters the picture? Does a spouse have any legal claim to another spouse’s inheritance in a Florida divorce?
Florida Equitable Distribution Laws in Divorce
Florida follows equitable distribution laws for dividing property during a divorce. Unlike community property states, which divide marital property equally, Florida courts aim to divide assets “fairly.” A fair division could mean a 50-50 split, but it could also involve a different proportion, such as 60-40, depending on the circumstances.
However, equitable distribution applies only to marital property. Non-marital or separate property, including certain inherited assets, is not subject to division in a divorce.
Marital Property vs. Non-Marital Property
In Florida, marital property generally includes assets acquired by either spouse during the marriage. These assets are subject to division in a divorce. On the other hand, non-marital property includes assets acquired by one spouse individually through inheritance, bequests, non-interspousal gifts, or descent.
An inheritance received by one spouse is considered a non-marital asset. Therefore, the other spouse typically has no legal claim to it during a divorce. However, there are critical exceptions to this rule. Without proper precautions, inherited assets can become marital property and thus subject to equitable division.
Mixing Inherited Assets with Marital Property
For an inheritance to remain protected as a non-marital asset, the receiving spouse must keep it separate from marital assets. Mixing inherited property with marital property can blur the lines and potentially subject the inheritance to property division. Here are some examples of how mixing can occur:
- Jointly Titled Assets: If you inherit a boat and later add your spouse’s name to the title, the boat is now considered a marital asset.
- Using Inheritance to Buy Joint Assets: If inherited funds are used to purchase a home or vehicle titled in both spouses’ names, the asset becomes marital property.
- Investments in Inherited Property: Suppose you inherit a lake house and use funds from a joint bank account to make renovations. In this case, the lake house could be deemed marital property because marital funds were used to enhance its value.
- Shared Access to Accounts: If you inherit a savings or investment account but allow your spouse access or use of the funds, the account could potentially be classified as a marital asset.
Once mixing occurs, separating the inherited portion from the marital assets can be extremely difficult, if not impossible.
Protecting Your Inheritance in a Divorce
To safeguard your inheritance from becoming marital property, proactive measures are crucial:
- Keep Inherited Assets Separate: Avoid depositing inherited funds into joint accounts or using them to purchase jointly titled assets.
- Maintain Records: Retain clear documentation of the inheritance, such as account statements, deeds, or wills, to prove its origin.
- Prenuptial or Postnuptial Agreements: Consider seeking help from an experienced divorce attorney who will help you draft a prenuptial agreement before marriage or a postnuptial agreement during the marriage to explicitly designate inherited property as separate property.
Additionally, consulting with an attorney can provide guidance on how to preserve the separate nature of inherited assets and advise on strategies to prevent mixing.
Taking the Next Step
Inheritance can add significant complexity to property division in a Florida divorce. Once an inheritance is mixed with marital property, courts may attempt to separate the marital and non-marital portions, but the process is often time-consuming and requires substantial evidence. To avoid unnecessary disputes and protect your financial future, it’s essential to act now.
If you have questions about protecting your inheritance or any other aspect of property division, our team at Florida Women’s Law Group is here to help. Call us today at 904-200-2419 or schedule a call here and take the first step toward securing your financial independence and peace of mind.
