Did you receive an inheritance while you were married? Are you now going through the divorce process? If so, you may have an important question to answer: what happens to the inheritance with regard to property division?
Generally speaking, an inheritance is not considered marital property. For this reason, it is not subject to equitable distribution. Instead, this is known as separate property and will belong to the person who received it.
Every state has its own laws regarding how an inheritance is treated if it has been shared with a partner. For example, what happens if the inheritance is deposited into a checking account shared by both people? In this case, the inheritance may no longer have immunity, meaning that it has to be divided in the event of a divorce.
If you received an inheritance before marriage, you should also know how this will be treated in the event of a divorce. Once again, state laws are in place to decide how this type of property is divided.
Many people bringing an inheritance into a marriage opt for a prenuptial agreement. This helps protect the assets in the event of a future divorce.
If you receive an inheritance during marriage, it is important to understand what will happen to the money if you split from your spouse in the future. Once you know your rights, it may change the way you handle the money.
Anybody going through divorce is sure to have questions regarding asset distribution in Illinois. This is even more so the case if one party received an inheritance during the marriage.
Source: FindLaw, "Inheritance and Divorce," accessed Feb. 09, 2016