Can I Keep My Inherited Assets After My Divorce?
Generally speaking, inherited assets are not considered a part of the marital estate. It’s the marital estate (not your entire estate) that gets divided during a divorce. However, there are certain situations in which your own personal assets, such as inherited ones, become “commingled” with the marital estate. In this case, the court will consider those assets part of the marital estate. In this article, the Largo, FL, divorce attorneys at the Law Office of Kevin F. Coleman will discuss a case in which one spouse’s personal inherited assets were commingled with the marital estate, thus becoming part of the marital estate.
Background of the case
In the case of Sorgen v. Sorgen, 162 So. 3d 45 (Fla. 4th DCA 2014), the wife inherited a one-third interest in her parents’ home prior to her marriage. After the home was sold, she placed her share of the inheritance proceeds into a joint bank account that she and her husband both used during the marriage. When the couple divorced later, the wife argued that the inheritance remained her non-marital (personal) property, making it exempt from equitable distribution. Her husband, on the other hand, argued that since the funds had been commingled in the joint account, they had been transmuted into marital property.
During their marital dissolution trial, the trial court found that the inherited funds were still non-marital property and awarded them solely to the wife. The husband appealed the decision.
The appeal
On appeal, the Fourth District Court of Appeal reversed the trial court’s decision. According to the appeals court, once the wife placed the inheritance proceeds into the joint account, a legal presumption of gift to the husband arose, which made the funds marital property (part of the marital estate).
Under normal circumstances, Florida law treats inheritances as non-marital property, but only if those assets are kept separate from the marital estate. When inherited funds are commingled with marital funds to the point where they can no longer be distinguished, they lose their “non-marital character” and are no longer considered the separate property of one spouse. By depositing the inheritance into a joint bank account, the wife created the presumption that she intended to gift her inheritance to her husband. In addition, since the funds were used in a way consistent with joint ownership, the presumption was not rebutted. Therefore, the funds became marital property and were thus subject to equitable distribution.
Significance of the case
In this case, the wife should have opened up a separate bank account or used her own bank account to deposit the money. Since she didn’t, the court was forced into the position of presuming that she gifted her inheritance to the marital estate.
Talk to a Largo, FL, Divorce Lawyer Today
The Law Office of Kevin F. Coleman represents the interests of Largo residents during their divorce. Call our Largo family lawyers today to schedule an appointment, and we can begin addressing your concerns right away.
Source:
casemine.com/judgement/us/5914cffeadd7b049348250f6
