How to Handle Family Inheritance in a Divorce

If you’ve received an inheritance, you may wonder whether your soon-to-be-ex spouse has a claim to it. Talking to a Bucks County family attorney is a way to understand how Pennsylvania law treats inherited property. Then, you can take steps to ensure your assets remain with you and your intended heirs.

Is Inherited Property Considered Marital Property?

In Pennsylvania, inherited property is generally considered separate property, meaning it belongs solely to the individual who received it. This means an inheritance is not automatically subject to division in a divorce like other marital assets, such as jointly owned homes or shared bank accounts.

Of course, each situation has its own assets, debts, and financial history to review. Certain factors can cause an inheritance to become marital property, including:

• Commingling funds. If inherited money is deposited into a joint bank account or used for shared expenses, it may be considered marital property.
• Using the inheritance for marital assets. When a spouse uses inheritance funds to purchase or improve jointly owned property, such as a family home, a spouse may have a claim.
• Gifting to a spouse. In situations where inherited property is gifted to the other spouse, such as by putting their name on a deed or title, they may have a legal claim to it.

It is normal to have concerns, but know that there are ways to shield your inheritance during a divorce.

What Are My Next Steps?

To be sure that your inheritance remains separate property, maintain those assets in a separate account. Avoid depositing them into joint accounts or using them for shared expenses to prevent them from becoming marital property.

Keeping clear records of your inheritance, including wills, trust documents, and bank statements, can help prove that the assets were intended solely for you, too. This documentation is crucial if your spouse tries to claim a portion of your inheritance during divorce proceedings.

A prenuptial agreement (before marriage) or postnuptial agreement (during marriage) is a way to explicitly state that any inheritance you receive will remain separate property as well. If you’re considering marriage or are already married, these agreements can provide a layer of protection in case of future disputes.

Once a divorce is finalized, update your estate plan, including wills, trusts, and beneficiary designations. Too often these documents are ignored and an ex-spouse remains as a beneficiary. Going through these documents and making the necessary adjustments ensures that assets go to intended heirs.

Some families have more complex inheritance issues than others, but whatever your situation, there are professionals who have helped others in similar circumstances. An experienced Bucks County family attorney can assist in proving your inheritance is separate property, negotiating a fair divorce settlement, and walking you through how to update your estate plan to reflect your new circumstances.

How have inherited funds been part of your marital finances? Have a conversation with the legal team at Kevin L. Hand, P.C. to determine the best path forward. Call 215-515-2604 to book a confidential consultation.