Going through a divorce is undeniably a demanding and intricate process. Among the most contentious aspects of a divorce is the division of property. In Indiana, couples are required to equitably divide their marital property, which encompasses all assets obtained during the course of the marriage. However, when it comes to inherited property, matters can become even more convoluted.
The Definition of Inherited Property
Inherited property refers to any property that one spouse receives as an inheritance from a family member or friend. This can encompass various kinds of assets, such as real estate, cash, stocks, bonds, and more. In Indiana, inherited property is considered individual property that solely belongs to the spouse who received it.
Equitable Distribution vs. Separate Property
Indiana adheres to the principle of equitable distribution when it comes to dividing marital property during a divorce. Under this principle, the court takes into consideration several factors to determine a fair and just distribution of property. However, the court typically approaches inherited property differently.
In Indiana, inherited property is generally viewed as separate property, meaning it solely belongs to the spouse who received it and is not subject to equitable distribution. Nonetheless, there are exceptions to this rule.
Exceptions and Special Circumstances
Inherited property can sometimes become part of the marital estate and subject to equitable distribution in limited situations. This can occur if the spouse who received the inheritance takes certain actions, such as:
- Mixing the inherited property with marital property
- Making a joint investment with the other spouse using inherited assets
- Depositing inherited assets into a joint account with the other spouse
In such cases, the inherited property may no longer be regarded as separate property and could be subject to equitable distribution in Indiana.
Tracing Separate Property
When inherited property is mixed with marital property, it can prove difficult to determine which assets belong to which spouse. Indiana law acknowledges the concept of "tracing" separate property, which means the court will determine the extent to which the inherited property can be traced.
If the spouse who received the inheritance can provide evidence of which assets originated from the inheritance, those assets can be considered separate property. However, if the inheritance has been commingled with marital property to the point where tracing becomes impracticable, it may become subject to equitable distribution.
Factors Taken into Account by Indiana Courts
Indiana courts consider several factors in deciding how to divide property during a divorce. These factors include:
- The duration of the marriage
- Each spouse’s contributions to the acquisition and maintenance of marital property
- The value of each spouse’s individual property
- The economic circumstances of each spouse
- Any dissipation of marital assets by either spouse
- The needs of each spouse
By taking these factors into account, Indiana courts aim to effect a fair and just distribution of property during a divorce.
Safeguarding Inherited Property: What You Should Know
If you possess inherited property and find yourself navigating through a divorce in Indiana, it is vital to take the necessary measures to protect your assets. The most effective approach is to keep your inherited property separate from marital property.
In cases where you must combine inherited and marital property, it is crucial to maintain detailed records and impeccable financial documentation. Creating a separate account specifically for your inherited property can also help prevent any confusion or complications.
Concluding Remarks
Divorce is undoubtedly a challenging experience, and the division of property adds another layer of complexity. The regulations pertaining to inherited property in Indiana may seem intricate, but developing an understanding of them is essential for safeguarding your assets. If you have any questions or concerns about your particular situation, seeking guidance from an experienced Indiana divorce attorney is always advisable.