If you inherit money or a piece of property while you are married, are those assets up for grabs if you get a divorce? Usually, an inheritance is protected, but there are actions that you can take or mistakes that you can make that could make it harder to protect these assets when property has to be divided up. Our Morris County, NJ division of assets attorneys can tell you when you need to be careful and which pitfalls to avoid.
Is an Inheritance Separate Property?
In most cases, an inheritance is going to be considered a separate property in New Jersey. If your mother passes away and leaves you $50,000, then that money is yours. As long as your spouse was not also named in the will, they have no claim to that money.
This would apply to an inheritance like a house, a piece of land, or a vehicle too. If your name is the only name that is going to be put on the new deed or title, that’s your property. Even if you acquired it while you were married, it will not be divided up during the divorce process.
What Mistakes Should I Avoid With an Inheritance?
An inheritance should remain separate property, but some people make mistakes that can leave them vulnerable later on. Even if you think that you will never divorce your spouse, you should not do anything that would jeopardize an inherited asset’s status as separate property.
There are a few actions that can make matters more complicated and risk an inherited asset becoming a piece of marital property. The most common mistake might be commingling. This means that you took your inheritance and combined it with marital assets. This usually happens when someone takes money they have inherited and deposits it in a joint account. You should never do this, even as a temporary measure. Keep inherited funds in a separate account.
Another mistake is conversion. This happens when someone takes a property that belongs to them and adds their spouse as an owner. So if you inherit a house and put your spouse on the deed as well, it’s tough to argue that it’s separate property.
Then there’s contribution. Let’s say that you inherit a vacation home but never use it or prioritize taking care of it. Your spouse enjoys the home though and they use it with your permission. They maintain it and they even renovate it, increasing its value. If you get divorced, they have a credible claim that their contribution added value.
In all of these situations, a spouse can claim that an asset that you inherited is not just separate property. They may try to claim a piece of it and they could have legal standing.
Meet With Our Divorce Lawyers
If you have questions about property division and how to protect your assets in a divorce, we can answer them. Contact Townsend, Tomaio & Newmark, L.L.C. to schedule a consultation with our team.