Have you received an inheritance from a loved one before filing for divorce? You might be wondering whether this will be subject to Florida’s equitable distribution laws. While courts aim for an equal split between spouses, your inheritance is usually safe.
However, if you have mixed the inheritance with the marital estate, it may lose its legal protection. Understanding how this occurs is important in protecting your asset.
When an inheritance becomes marital property
In Florida, the law treats your inheritance as non-marital property. This means it belongs to you and has protections from property division during a divorce. However, performing these actions can pierce through its separate asset protection:
- Commingling: You mixed the inheritance with marital property. This can occur when you deposited the cash into a joint bank account that you and your spouse share.
- Transmutation: You legally added the name of your spouse to the deed or title of a physical asset, such as a house, vehicle and business venture.
- Using funds to improve a marital asset: You paid for the house’s mortgage or its renovations with the cash from your inheritance.
- Active appreciation: Your spouse has exerted time and energy to grow your inheritance’s value. This applies to family businesses, and the increase in its value is subject to division.
If you have done any of these, the courts may start with the premise that your inheritance should be divided equally. You must prove that it is strictly non-marital.
What to do to secure your family wealth
Ensuring your inheritance remains yours is possible. You must avoid mixing it with marital property by placing it in an individual bank account under your name. Consider drafting a postnuptial agreement to explicitly define that the inheritance remains your sole property after divorce.
Seek legal advice to further understand your protections
The nuances of Florida law add complexity in securing your inheritance from property division. If you are not sure about the statutes, refrain from acting on your judgment. Instead, seek legal guidance to learn more about your options for maintaining the separate status of your gift.