Inheritance Protection During Divorce: Essential Tips

Going through a divorce is never easy, especially when it involves dividing marital assets. One crucial question that arises is the treatment of gifts and inheritances as marital property. In this guide, we’ll delve into the implications of inheritance in divorce proceedings and provide valuable insights on safeguarding your inheritance during this challenging period.

Understanding Inheritance and Divorce:

Under the divorce code, “marital property does not include…property acquired by gift, except between spouses, bequest, devise or descent” (23 Pa.C.S. 3501(a)(3)). This categorizes gifts and inheritances received during the marriage as non-marital property, exempt from equitable distribution.

The Impact of Commingling Funds:

However, there’s a crucial aspect to consider. Commingling of funds can blur the distinction between separate and marital assets (Verholek v. Verholek, 741 A.2d 792 (Pa. Super., 1999)). Depositing non-marital funds into shared accounts can create challenges in distinguishing between the two (Roher v. Roher, 175 A.2d 463 (Pa. Super., 1998)).

Preserving Your Inheritance:

To safeguard your inheritance during divorce proceedings, follow these essential steps:

1. Maintain Separate Accounts: Open and maintain a dedicated bank account solely for your gift or inheritance funds.
2. Transparent Transactions: If you need to use the non-marital funds for joint expenses, transfer specific amounts to the marital account, keeping meticulous records.
3. Document Everything: Preserve all relevant documents, including receipts and statements, to demonstrate the purpose of the inherited money.
4. Seek Legal Guidance: Consult an experienced family law attorney to receive personalized advice for your unique situation.

Gifts and inheritances are generally considered non-marital property, but commingling funds can complicate matters during divorce. Protect your inheritance by keeping it separate and documenting its usage. Seeking legal advice will help you navigate the process with confidence. Act now to secure your non-marital assets for the future.

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