Property division is one of the most highly contested issues in a New Jersey divorce. If you have received an inheritance, you are likely wondering whether those funds are subject to equitable distribution. Please continue reading, and get in touch with our skilled Monmouth County Division of Assets Attorneys to learn more about how divorce can affect an inheritance.
How is Property Distributed in a New Jersey Divorce?
When a couple dissolves their marriage in New Jersey, the courts are tasked with classifying their property as either “marital” or “separate” property. Marital property refers to assets acquired during the marriage, whereas separate property refers to assets acquired before or outside of the marriage.
The Garden State operates under an equitable distribution system. This means that marital property and debts are divided fairly, but not necessarily equally, like in community property states. The court uses statutory factors like the duration of the marriage, marital contributions, established lifestyle, and economic needs to determine a fair division of assets. Marital property is subject to equitable distribution. Separate property, on the other hand, is typically excluded from division.
Can I Lose My Inheritance?
When people receive an inheritance, a major concern is losing it in a divorce. Generally, an inheritance is viewed as separate property, meaning it is safe from being split. However, an inheritance can become marital property. For example, if you “commingle” it, which means mixing it with shared funds, in a joint account or using it for joint things like paying a mortgage, it can switch to being marital property and subject to division.
It can also be split if you put your spouse’s name on the title of inherited property or if you used inherited funds for a down payment on a property that is in both parties’ names. Additionally, if joint funds or a considerable effort from your spouse makes the asset worth more, that increase might be considered marital. Any money the inherited assets bring in, like rent, might be classified as marital even if the asset technically stays separate.
To keep an inheritance separate, you must keep funds in a separate account, refrain from using inherited funds for marital expenses or jointly titled assets, and avoid using your spouse’s name on the title of inherited property. Documentation is crucial for confirming the course of all inherited funds.
If you are concerned about your inheritance, consulting an experienced Monmouth County division of assets attorney at Paone Zaleski & Murphy is in your best interest. Our legal team is prepared to help you safeguard what you have received and mitigate unnecessary conflict.
