Question By: Inheritance typically remains the separate property of the individual who receives it, but it can become marital property under certain conditions. The classification of inheritance as marital property depends on how it is managed during the marriage.
Commingling of Assets: If the inheritance is mixed with marital assets, such as being deposited into a joint bank account or used to purchase jointly titled property, it can be considered marital property. Commingling makes it difficult to distinguish the inheritance from marital funds.
Transmutation: This occurs when the inherited property is treated in a way that changes its nature from separate to marital. For example, if inherited money is used to buy a home titled in both spouses' names, the inheritance can be viewed as a gift to the marital estate.
Spouse's Contribution: If the non-inheriting spouse contributes significantly to the maintenance, improvement, or value appreciation of the inherited property, a court may deem it marital property. An example is renovating an inherited home with joint funds or labor.
State Laws: The laws governing property division during divorce vary by state. In community property states, all assets acquired during the marriage are generally considered marital property, while equitable distribution states consider various factors to determine fairness in asset division.
Don't navigate this complex process by yourself. Contact their asset division attorneys in Dallas at Orsinger, Nelson, Downing & Anderson to schedule a consultation. For more detailed information, visit: https://ondafamilylaw.com/when-does-an-inheritance-become-marital-property/
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