Can a spouse deposit money into an inheritance account?

There are a few ways that this can happen with an inheritance. If your inheritance is cash, you cannot place those funds in an account that has funds or assets acquired during your marriage. For example, you deposit your inheritance funds into an account that you and your spouse use to pay bills or deposit your earnings.

Is the wife entitled to her husband’s inheritance?

However, the husband allows the wife access to the account and, with his permission, the wife begins using the account to invest money. Both spouses continue to use the account for the next several years. The account may now be a marital asset. Once the property is commingled, it typically cannot be separated.

Is the inheritance considered marital property in a divorce?

Whether or not your inheritance is considered marital property becomes relevant should you divorce. In most states, the courts view marital property as being subject to equitable division, meaning the assets are allocated between spouses in a just and fair manner.

How is an inheritance divided in a divorce?

If you commingle your inheritance and live in a community property state—a state where courts divide marital property 50/50 in a divorce—your spouse is entitled to half of that inheritance.

When is my spouse entitled to my inheritance?

Separate property is property that you owned before the marriage. For instance, if you purchased a vacation home before your marriage, the vacation home is separate property. Provided that you maintain the status of the property as separate property throughout the marriage, your spouse is not entitled to half of vacation home when you divorce.

How does inherited property work in a marriage?

Commingling inherited property can be very subtle. A spouse inherits a savings account or stock account from a family member. The spouse maintains the account in his name only. However, the husband allows the wife access to the account and, with his permission, the wife begins using the account to invest money.

How are inherited assets divided in a divorce?

Commingling of Inheritance and Divorce A spouse must keep inherited assets separate and apart from marital assets to prevent the assets from being subject to property division laws. If the spouse commingles inherited assets with marital assets, the other spouse may have a claim to the inherited property.