Divorce proceedings can be a highly overwhelming and emotionally charged experience. The division of assets is often one of the most contentious and difficult aspects of a divorce, especially when it involves inherited property. New Mexico, like other states, has specific rules regarding property division, and it’s crucial to have a clear understanding of how inheritance affects this process.
Community Property vs. Separate Property
To comprehend the impact of inheritance on property division, it’s important to distinguish between the two types of property recognized in New Mexico: community property and separate property.
Community property refers to assets acquired by both spouses during the marriage. On the other hand, separate property encompasses any property owned by an individual prior to the marriage, as well as assets acquired through inheritance or gifts during the marriage.
Inheritance and Property Division
In New Mexico, inheritance is generally considered separate property. This means that the property you inherit is likely to be excluded from the pool of assets subject to division during divorce proceedings. However, the handling of the inheritance can influence how it is divided in the divorce.
Commingled Inheritance
In certain cases, inherited property may become commingled with community property assets, making it challenging to ascertain its value. For instance, if you deposit your inheritance into a joint account shared with your spouse, it can become mixed with community property. In such situations, the court might view the inheritance as partially community property.
Tracing Inheritance
Nevertheless, if you can demonstrate that the inheritance was kept separate and not mingled with community property, you may potentially retain the entire inheritance as separate property. Though this can be a complex task, maintaining detailed records that clearly identify the property and its value can bolster your case.
Marital Agreements
Another effective approach to address inheritance within divorce proceedings is to safeguard it through a prenuptial or postnuptial agreement. These legally binding agreements establish guidelines on how property should be treated during a divorce. If you have a prenuptial or postnuptial agreement that specifically addresses inheritance, chances are that the inheritance will remain protected and not subjected to division.
Equitable Distribution
It’s important to note that New Mexico follows the principle of equitable distribution during property division. This allows the court some flexibility in dividing assets, taking various factors into account. These factors include the duration of the marriage, the contributions of each spouse to property acquisition, and the economic circumstances of each spouse. Even if the inheritance is considered separate property, it may still be considered as one of the many factors the court considers when dividing assets.
Conclusion
To summarize, inheritance is generally treated as separate property in New Mexico divorce cases. However, certain circumstances can influence how it is divided during the divorce process. It is crucial to seek the guidance of a reputable and experienced divorce attorney who can provide valuable assistance in navigating these complexities. They can help you understand the intricacies of property division, protect your rights, and advocate for your best interests throughout the process.