Explaining how inheritance is separate property
  1. Home
  2.  → 
  3. Property Division
  4.  → Explaining how inheritance is separate property

Explaining how inheritance is separate property

by | Apr 26, 2019 | Property Division |

Property division is an important part of divorce in Kentucky. It can also be a very challenging and stressful part of the process, especially if you and your spouse are nowhere near on the same page. One asset that is not considered marital property when going through a divorce is an inheritance unless it meets certain criteria that makes it eligible to be divided.

For the most part, the laws regarding inheritance keep it separate from marital property, especially if only one person inherited the money. Since a will typically names individual beneficiaries, this document is good enough to keep inheritance separate from the other spouse when going through a divorce.

There are a couple of exceptions to the inheritance rule when getting divorced. They include money that was put into joint accounts, inheritances used for upgrades to the home and those inheritances that named spouses as joint beneficiaries. The first exception is when the recipient of the inheritance deposits the money into a joint account with their spouse. This money is no longer separate property in the marriage.

The second exception to the rule is when the inheritance money is used to make upgrades to the home. Since the home is marital property, the value added to the home using the inheritance money will be joint property when the couple finalizes the divorce.

The third exception is if both spouses were named as co-beneficiaries for the inheritance. This means that they both received a portion of the inheritance and therefore must share it when they finalize the divorce.

Dividing maritial property in a divorce can take quite a bit of time. When inheritance is in the picture, make sure you have proof that it was never deposited into a joint account or used to upgrade the home. If it was, it can be equally divided between the spouses.