Key Takeaways
- In most cases, an inheritance is considered separate property.
- If you comingle funds or assets from an inheritance, they can become marital property, which is subject to division during a divorce.
- You must keep cash from an inheritance in a separate bank account in your name only, or else the inheritance can become marital property.
- After receiving an inheritance, speak to an estate planning attorney to learn more about protecting your inheritance.
- A prenuptial or post-nuptial agreement can show intent that you planned to keep your inheritance separate.
When you receive an inheritance in Virginia, it is your separate property, even though you are married. However, it can become marital property, subject to division during a divorce. When does an inheritance become marital property? When you commingle it with marital property. If you are married and wish to keep an inheritance separate, what you literally do is keep it in a separate account. If you have inherited real estate, don’t “add your spouse” to the deed. Because you cannot see into the future, you should always take steps to keep an inheritance separate from marital property – even when divorce seems to be an impossibility. An estate planning attorney at Virginia Beach Law Group can guide you in protecting your inheritance.
What Factors Determine Whether Your Ex-Spouse Gets Your Inheritance?
Generally, Virginia law looks at your ex-spouse as someone who died prior to you – that person does not exist for purposes of your estate – an ex does not inherit anything by intestate descent. However, if you are in an incomplete divorce and you pass away lawfully wedded, even if separated, the surviving spouse might make a successful run at inherited property that’s in your estate. A surviving spouse might also be a part-owner of real estate if you were not careful in splitting up assets that accumulated during the blissful part of your marriage. Or maybe there’s a Will and Spouse is still in it…
Pro-tip: tell your estate planning attorney EVERYTHING.
When Does an Inheritance Become Marital Property?
Several factors will determine whether your ex-spouse gets part or all of your inheritance, including:
- Comingling funds, such as putting cash into a joint bank account or using an inheritance to pay for marital property.
- Adding your spouse’s name to any real estate you inherited causes it to become marital property.
- Registering vehicles received in an inheritance or purchased with an inheritance with or into your spouse’s name could cause them to become marital property.
- Putting inherited stocks into a joint account with your spouse causes it to become marital property.
- Using money or other assets from your inheritance for the marital estate, e.g., for paying a mortgage or otherwise supporting the marital home.
Who Should You Talk to If You Are Worried About Losing Your Inheritance?
Once you find out you are receiving an inheritance, you should contact a financial advisor to ensure you are following all of the correct steps to receive your full inheritance. You should also contact an estate planning attorney at Virginia Beach Law Group to learn how to protect your inheritance in the event of a divorce and to learn how to ensure the people you want to receive it after your death get it.
Does a Pre-Nup or Post-Nup Help When Dealing with Inheritances?
A prenuptial or postnuptial agreement can help determine the intent of the inheritance and keep the funds separate from other marital property. Additionally, if you had a will when you were married but never changed it after you divorced, the law protects you by severing any bequest to your ex-spouse. However, there is always a chance that your ex-spouse will try to collect before anyone finds out the divorce was final.
Your safest action is to write a new will before or during the divorce process, as you never know whether something could happen. A sudden illness or an accident that takes your life during divorce proceedings could cause your soon-to-be ex-spouse entitlement to your inheritance.
Why Clients Choose Virginia Beach Law Group
Probate law can be complex depending on a person’s situation. An experienced estate planning attorney at Virginia Beach Law Group can guide you in creating an estate that protects your inheritance in the event that you might divorce or if you are going through a divorce when you receive the inheritance.
Testimonials
“Dave really cares about his clients, if you need Wills & Estate planning in Virginia, I highly recommend this law firm. They are compassionate, and extremely thorough.” — Sarah K.
Worried About Losing Your Inheritance? Contact Us Today.
If you receive an inheritance, contact an estate planning attorney at Virginia Beach Law Group if you are concerned about your ex-spouse or soon-to-be ex-spouse taking some or all of it during divorce proceedings. Contact us at 757-486-4529 or by completing our online contact form.
