Can You Lose Your Inheritance During a Florida Divorce?

In many Florida divorces, it is not uncommon for one party to be the recipient of an inheritance, which can take the form of cash or property from parents or other relatives. According to Florida law, inheritances fall under the category of nonmarital properties and are usually protected from division in a divorce. However, this is no longer the case when an inheritance gets mixed or “commingled” with marital property. In this article, we’ll review a case involving an inheritance that was mixed up with the marital estate and, therefore, subject to equitable distribution.

Background of the case

Generally speaking, when one party receives an inheritance from another party, it is considered their own separate property and not the property of the marital estate, which is subject to division during a divorce.

The problem arises when inheritances have been deposited into joint bank accounts, or the inheritance has been spent for the common needs of the husband and wife. As a result, the court could rule that the inheritance is part of the marital estate because the funds were mixed together in a joint bank account or something similar.

In the course of divorce hearings, the trial court should examine what steps were taken with the money from an inheritance.

The lower court ruled that the inheritance became marital property.

The appeal

The wife, who received the inheritance, challenged the decision, claiming that her money should be considered separate property and that half should not be allotted to the former husband. The court of appeals examined the facts relating to how the money was handled by the couple while they were married.

According to the Fourth District Court of Appeal, nonmarital property could become marital property upon being mixed with marital property. An inheritance, for example, deposited into a joint bank account would be considered marital property.

Tracing plays a significant role in these types of cases. If one spouse managed to trace an inheritance and prove that it stayed separate during the course of the marriage, the property could remain nonmarital. But when the property is mingled with marital property, it becomes eligible for equitable distribution.

Thus, the appeals court upheld the ruling made by the trial court.

Key takeaways

When discussing this case, it is important to recognize the fact that inherited assets may be lost to one spouse or divided equally in a divorce if the inheritance was commingled with marital property. Under Florida law, an inheritance is normally considered non-marital property. However, it is important for one spouse to protect themselves to keep inherited money and other items safe.

If spouses wish to protect inherited assets in divorce proceedings, it may help to:

• Keep inherited funds separate;
• Avoid joint ownership or titling;
• Document transactions and other financial information; and
• Use inherited money for non-marital purposes only.

Disputes regarding commingling are not uncommon in divorces that take place in Florida, especially for long marriages during which finances have been entangled. In many instances, it is necessary to evaluate how inherited assets were treated in the marriage in order to determine their fate.

Talk to a Clearwater, FL, Divorce Lawyer Today 

Cairns Law, P.A., represents the interests of Clearwater residents during their divorce. Call our Clearwater family lawyers today to schedule an appointment, and we can begin discussing your next steps right away.

Source:

case-law.vlex.com/vid/lakin-v-lakin-no-888819193