Inheritance is often a worry for people going through a divorce. For anyone who has received or is going to receive an inheritance, the prospect of marital assets being divided in the divorce can be a troubling one. So is inheritance part of a divorce settlement?
If you’re unsure what is likely to happen to your inheritance, the best thing to do is to get in contact with a specialist divorce solicitor who will provide you with all the answers you will need. The following article will detail some of the important facts surrounding inheritances and divorce with a dedicated section for the state of Virginia.
Marital assets play a central role in divorce proceedings, often becoming a focal point for negotiation and division. These assets encompass a wide range of properties and finances acquired during the course of the marriage, including real estate, vehicles, bank accounts, investments, retirement accounts, and businesses.
In Virginia, marital assets are subject to equitable distribution, meaning they are divided fairly but not necessarily equally between spouses. However, determining what constitutes a marital asset can sometimes be complex, especially when assets are commingled or acquired before the marriage.
It’s essential for individuals navigating divorce to seek legal guidance to ensure a comprehensive understanding of their marital assets and their rights during the division process.
Past Inheritances and Divorce
There are some important facts related to past inheritances and divorce proceedings that will affect the outcome of any settlement. These key questions include the size of the inheritance, the date it was received, how it has been used, the financial situation of each party, and if there are any children involved.
Inheritance that is transferred to joint names or for the use or benefit of the family is likely to be placed as part of the matrimonial assets pot. If inheritance is received a short time after the breakdown of a marriage, they are unlikely to be used as part of the division of assets. However, this is subject to other assets meeting the sufficient needs of the couple or family.
The prevailing consideration is often the needs of the family, particularly if there are children involved. If the only way in which needs can be met is to transfer assets, then the court has the ability to do this. As previously mentioned, this will be done on a case-by-case basis by assessing each case’s individual circumstances.
Future Inheritance and Divorce
Future inheritances are usually more straightforward to deal with in divorce procedures than past inheritance. Oftentimes, a future inheritance is not considered when assessing the financials of a divorce. In cases where the bequest is likely to pass away in the short-term future and the inheritance is considerable, this may be viewed differently. It’s not uncommon for courts to postpone proceedings until the inheritance has been received.
Inheritance and Divorce in Virginia
In Virginia, inherited property is categorized as distinct, even if it’s received during the marriage. The court can only divide marital property and is not able to interfere with your inheritance. This means you will be able to keep your full inheritance.
As long as your inherited property remains separate from other assets, analyzing your inheritance is rarely met with complications. Where problems may arise is when inheritance is used to fund other assets.
It’s often the case that inheritance is reinvested into marital assets which can complicate the matter. This will naturally increase the amount of work related to determining how the inheritance is split but it does not mean that your inheritance is automatically divided.
In order to preserve your inheritance as separate property and avoiding having to divide it, you will need evidence. If you can prove how your inheritance has ended up in its current form via receipts and other expenditure information, you will have a good chance of keeping this separate.
Using inherited assets to pay for part of a marital asset will mean the new asset is considered hybrid property. Part of the hybrid property is a separate asset and part of it is a marital one. In these scenarios, the part of the asset that tracks back to your inheritance will stay as separate property providing you can prove this is the case.
It’s vital that legal documents and receipts relating to the purchase and the inheritance are kept. These will help you build a strong case and allow you to keep your property separate. This process can be long and arduous and will likely require the assistance of a professional to help you navigate it. However, it’s well worth doing if you have a substantial inheritance that you would like to keep.