Dividing assets during a divorce can raise complex questions, especially when inheritance is involved. You may wonder whether your spouse has a right to money or property a family member left to you. The answer depends on how you treated that inheritance during the marriage.
When inheritance stays separate
In most cases, courts consider inheritance separate property. If you received money or property and kept it in your name only, it generally remains yours. For instance, if you placed inherited funds in an individual account and didn’t use them for shared expenses, the court will likely view it as separate.
The same rules apply to inherited real estate. If you inherited a home and avoided adding your spouse to the deed or using joint funds for maintenance or improvements, you usually keep full ownership. Keeping inherited assets apart from shared finances plays a key role in maintaining separate status.
When inheritance becomes marital property
Inheritance can lose its separate classification if you mix it with joint assets. This process, known as commingling, occurs when you deposit inherited funds into a shared account or use them to purchase jointly owned property.
You can also convert separate property into marital property by using it in a way that benefits both spouses. For example, if you and your spouse use inherited funds to renovate your primary residence or treat an inherited home as marital, the court may divide its value.
How courts in New Jersey decide
Courts in New Jersey examine how and when you received the inheritance, along with how you used it. If you can show that the asset remained separate, the court may allow you to keep it. But if you handled it as shared property, the court might divide it as part of the divorce settlement.
Detailed financial records can make a difference. Documentation like account statements, property deeds, and receipts help demonstrate that you treated the inheritance separately. These records carry weight in high-asset divorce proceedings.
What you can do to protect it
To safeguard your inheritance, keep it apart from marital property. Use separate accounts, avoid joint expenses, and consider a prenuptial or postnuptial agreement that clearly defines ownership.
Taking these steps during your marriage can reduce confusion and conflict later. Clear financial boundaries protect your interests if the relationship ends.