Is My Inheritance Considered Marital Property in a Pennsylvania Divorce?

Receiving an inheritance can be a dream come true for many individuals. While they are sorry to have a relative or associate pass, receiving an unexpected sum of money can seem like a miracle — especially with so many people currently facing financial difficulties. Unfortunately, the proceeds from an inheritance can also become a nasty factor in a divorce. If you are set to inherit some money but have also felt that your marriage might be close to ending, it’s important to know how Pennsylvania laws can affect your funds. 

Is an Inheritance Considered Marital Property?

While most money that is acquired after a marriage is considered to be marital property, this is not the case with an inheritance. An inheritance is put in its own category in a divorce. Since the money earned in an inheritance was given to a specific person, that person is the sole owner of the money. But, before you think that this means that you can take your inheritance and go on a spending spree without your soon-to-be-ex, you need to understand that this can change quickly depending on your unique circumstance. 

When Does it Change to Marital Property?  

Whether your inheritance is considered marital property or not depends largely on what you spend it on. If you decide to purchase a car with it before your divorce is finalized, the car will most likely be considered to be half your spouse’s. Likewise, putting the money in a joint bank account automatically makes it shared money. If you inherit a piece of land or a house and put your spouse’s name on the title along with yours, it will also make it marital property. It is important to note that even if you do not put your spouse’s name on an inherited asset, like a house, the increase in value of the inherited assets that occurs during the marriage is still considered marital property by the courts. This can be a point of contention if inherited assets appreciate greatly during the marriage.

What to do With Your Inheritance

To ensure that you get to keep all of the money that you’ve inherited, your best course of action is to open a bank account owned solely by you with your name as the only owner and put the money there. While you may be tempted to make large purchases or pay off bills, doing so will ultimately work against you during the court proceedings. 

What If You Inherit More than Money

Money is not the only thing that people leave to their beloved relatives and friends at their passing. Some people also choose to leave real estate, vehicles, jewelry, and furniture. To ensure that you are able to keep this inheritance during a divorce, it’s important to keep close track of paperwork that designates you as the sole owner of the item. 

If you are in the midst of or preparing for a divorce and also stand to inherit money or property, now is the time to start taking action. Contact our law offices to discover what you can do to make sure that your inheritance stays where it belongs – in your possession!