Receiving an inheritance can be an exciting moment, especially if it comes from a loved one. But what happens to it when you decide to divorce your spouse? Will it be subject to property division? Finding answers to these questions may not be straightforward, as there are intricate concerns to consider.
Understanding separate property under Georgia law
In Georgia, separate property refers to assets you owned before the marriage and assets you received from your spouse or a third party during the marriage. If you receive your inheritance before or during marriage, it counts as separate property.
As such, your inheritance is not subject to division in a divorce. It remains as separate property, unless you perform certain actions that can turn it into marital property.
Defining the dangers of commingling assets
Commingling is the act of mixing funds or assets that should stay separate. Doing so can legally alter the status of your inheritance, from separate to marital property. Commingling happens through actions like:
- Depositing inheritance funds into a joint bank account
- Adding your spouse’s name to an inherited property
- Using the inheritance funds to purchase items that benefit the marriage
- Using the inheritance funds to pay the home mortgage
Performing any of these actions blurs the financial lines, potentially making your inheritance subject to equitable division.
Protecting your inheritance with evidence
Your inheritance can remain separate, provided that you can trace every dollar and asset back to its origin as an inheritance. Gather evidence, such as records of transfers, copies of the will or trust and separate account statements. If you are unsure how to proceed or if the assets are already mixed, seeking legal clarification can be beneficial.
