Divorce is a challenging and emotionally trying time for any couple. Matters become even more intricate and nuanced when there are questions surrounding the division of property, including inherited property. In the state of Pennsylvania, specific laws govern the distribution of inherited property during divorce proceedings.
Inherited Property: Separate or Marital Asset?
An essential initial consideration in the distribution of inherited property is whether it is categorized as separate or marital property. Pennsylvania operates under the principle of equitable distribution, where property division aims to be fair and just, but not necessarily equal.
Typically, separate property is not subject to division in a divorce. In Pennsylvania, separate property refers to assets acquired prior to the marriage or assets obtained after separation. It includes inheritance, personal injury awards, or gifts received exclusively by one spouse. However, distinguishing between separate and marital property might become more complex when inherited assets become entwined with marital assets.
Commingling Inherited Property
When inherited property becomes mixed or commingled with marital property, a presumption arises that it has transformed into a marital asset. Consequently, any increase in value during the marriage may be considered marital property, and the court is tasked with determining the respective proportions to be awarded to each spouse.
For instance, suppose a spouse inherits a family home but utilizes marital funds to finance upgrades or repairs. In that case, the augmentation in the home’s value may be deemed marital property. Furthermore, if inherited funds are deposited into a joint bank account and subsequently used for household expenses or investment opportunities, those funds may also be categorized as marital property.
Evidence of Separate Assets
To prevent inherited property from being classified as marital property, it is crucial to provide substantial evidence demonstrating the asset’s separate status. Such evidence may encompass documentation such as a will, trust agreement, or proof of maintaining inheritance in a separate account entirely distinct from marital funds.
However, it is important to note that maintaining inherited property separately does not necessarily guarantee its continued separation in the future. Any income generated by the asset during the marriage, such as rental income from an inherited property, may be considered marital property, irrespective of the underlying asset’s separate classification.
Discretion of Courts
Ultimately, the judges possess significant discretion when it comes to dividing both marital and inherited property in a divorce. They carefully consider a multitude of factors, including the duration of the marriage, each spouse’s contribution to the marital property, and the standard of living maintained during the marriage.
In cases where the inherited asset is deemed marital property, the judge takes into account various aspects, such as the degree of commingling, the length of the marriage, and the respective contributions of each spouse, while determining the division of the asset.
Conclusion
Divorce is an undoubtedly stressful life event, and dividing inherited property can introduce an additional layer of complexity into the proceedings. It is vital to thoroughly grasp the available options pertaining to inherited assets and to be aware of your rights under Pennsylvania law. Enlisting the guidance of an experienced lawyer will prove invaluable, as they can skillfully navigate you through the process, ensuring a fair distribution of property in your divorce.