Getting a divorce is never an easy task. Dealing with financial assets adds another layer of complexity, with inheritance being one such asset that can cause complications. Inheritance refers to the property or money that a person acquires through a will after the death of a relative or friend. However, understanding what happens to your inheritance during a divorce in Iowa requires careful consideration. This article aims to explore this issue for the guidance of Iowans who are currently going through a divorce.
Understanding Iowa’s Property Division Laws
Iowa follows the equitable distribution principle when it comes to property division in divorces. This means that property needs to be divided fairly, although not necessarily through an exact 50-50 split. The court considers various factors to achieve an equitable distribution for both spouses.
To start, Iowa courts classify property as either marital or nonmarital during divorce proceedings. Marital property encompasses assets obtained by the couple during their marriage, while nonmarital property consists of assets considered separate and not part of the marital estate.
Is Inheritance Considered Marital or Nonmarital Property in Iowa?
In Iowa, inheritance is generally not considered part of the marital property, unless it becomes commingled with assets acquired during the marriage. Commingling occurs when the inheritance money is mixed with marital income or used to purchase property that is also classified as marital.
For example, suppose a spouse receives an inheritance and decides to deposit the funds into a joint checking account, subsequently using that money to pay for expenses related to the marriage. In that case, the inheritance funds become commingled and, therefore, transform into marital property. When commingling occurs, the court may order the asset to be divided among the spouses.
How Can I Protect My Inheritance During Divorce?
If you find yourself wanting to safeguard your inheritance during a divorce in Iowa, it is crucial to follow these steps:
Keep your inheritance in a separate account: To ensure the preservation of your inheritance, avoid depositing the money into a joint account or utilizing it to cover marital expenses. By maintaining it in a separate account, you establish a clear distinction between marital and nonmarital assets.
Avoid commingling your inheritance: It is essential not to mix your inheritance money with marital funds, especially when purchasing assets such as a family home or other properties considered part of the marital estate. By keeping your inheritance separate, you maintain its classification as nonmarital property.
Keep detailed records: Maintaining accurate documentation is vital in protecting your inheritance. Keep receipts and documents that provide a clear history of your inheritance, demonstrating its separate status. These records serve as evidence and can help support your claim that the inheritance should be considered nonmarital property.
Conclusion
Inheritance holds significant value during a divorce, but it can also become a source of conflict between spouses. While Iowa generally considers inheritance as nonmarital property, specific situations can lead to its inclusion in the marital estate and subsequent division between spouses. Protecting your inheritance necessitates proactive steps such as keeping it in a separate account, avoiding commingling, and maintaining comprehensive records. By following these measures, you can increase the likelihood of preserving your inheritance during a divorce in Iowa.