Property division is a complex aspect of a divorce. Often, the longer a marriage lasts, the more assets a couple has acquired, including the family house, stocks, retirement funds, and others. When it comes to property division in Madison County, things can get even more challenging if a spouse has obtained a huge inheritance or will soon get one. Thankfully, divorcing couples can always turn to family attorneys at The Harris Firm for legal help and guidance.
Divorce and Its Impact on Inherited Assets
In the state of Alabama, marital assets are split between the two spouses based on what the court considers equitable and fair. Depending on the couple’s circumstances, the outcome will vary. When dividing marital assets, it is important to determine which assets are marital property and what are separate property.
Marital property includes assets or debts acquired during the marriage. In an Alabama divorce, only marital property is divided. Meanwhile, separate property refers to assets or property that one spouse owned before they got married. It includes inheritances. This type of property is not impacted by the property division aspect of a divorce. Thus, the spouse who owns such assets will keep them.
Assessing Inheritance
In general, marital estates do not cover inheritances during a divorce. But when you start to combine an inheritance with marital funds, it can be challenging to determine whether your inheritance is still separate property. To keep the inheritance to yourself, consult with an attorney and educate yourself about the law. Some instances could become marital property when:
- The funds from your inheritance have been deposited to your joint bank account that you two have access to.
- If you and your spouse utilized the funds from the inheritance as a downpayment to buy a shared property.
- The inherited funds were used to renovate or improve your shared home.
- You and your spouse started a business using the funds and you both own and work in this business.
- You both used the inherited funds for expenses you both shared.
Generally, whenever it is hard to figure out which funds are marital or separate, they are considered marital property. If you and your spouse can’t work out property division, your lawyers need to present arguments and particular circumstances to the family court. The decision will be made by the court.
Impacts of Inheritance on Spousal Support
Any inheritance a spouse gets may impact the way spousal support is navigated in divorce proceedings.
The income of every spouse is a major factor when determining alimony or spousal support. The financial needs of the lower-earning spouse are compared to the higher-earning spouse’s financial capacity.
If the spouse who earns more inherits a huge amount of assets or a big income, this could impact the spousal support amount. Meanwhile, if the lower-earning spouse gets an inheritance, their need for spousal support might reduce or be eradicated, depending on the support amount.
Inheritances will affect a divorce in Alabama only if a spouse already has obtained them or will get them after the settlement of the deceased loved one’s estate. Any expected inheritances from a living member of the family shouldn’t factor into a divorce.
If you are in the middle of a divorce and are wondering about the impact of your inheritance on the process, seek advice from a reliable lawyer. This lawyer can help you determine which assets or marital or separate. Also, you need an attorney if you are expecting to get an inheritance soon and want to protect it or use it safely in your marriage. No matter the case, a divorce lawyer can help you make informed decisions.