Dividing property during a divorce can be complicated, especially when it comes to inherited assets. You might wonder whether these assets will be included in the property division. In Kentucky, specific guidelines dictate the handling of inherited assets to ensure fairness to both parties involved.
Understanding inherited assets in divorce
Inherited assets, such as property, money, or valuables, generally count as separate property. Separate property includes assets owned by one spouse before the marriage or acquired during the marriage through inheritance or a gift. However, just because you inherit an asset doesn’t mean you automatically keep it out of the division during a divorce.
When inherited assets become marital property
In some cases, inherited assets can become marital property if both spouses treat them as such. For example, if you inherit money and deposit it into a joint bank account, both parties might view it as a marital asset. The same applies to inherited property that both spouses use for family purposes, like a home shared by both. Once you integrate these assets into the marriage, the court might divide them.
The importance of documentation
If you want to keep your inherited assets separate, maintain clear documentation. Keep records showing when and how you acquired the asset, how you’ve handled it, and whether you kept it separate from joint accounts or shared property. Without this proof, a court might struggle to determine whether the asset remains separate or gets divided.
How courts decide on inherited assets
In Kentucky, courts usually follow equitable distribution to divide property during a divorce. This means that while the court won’t necessarily divide property 50/50, the division aims to be fair based on the circumstances of both parties. If a court determines that an inherited asset counts as separate property, the court likely won’t divide it. However, the court may consider how the couple used the asset during the marriage when making its final decision.
Marital assets like the family home, retirement accounts, and savings may influence how the court handles inherited assets. In some cases, the value of an inherited asset may help offset the value of other assets during the division.
Inherited assets in divorce can be tricky, but with proper documentation and a clear understanding of the law, you can help ensure that courts divide your property fairly.