An inheritance can carry both financial value and personal meaning. If you are getting divorced, you may wonder whether money, property, or family belongings left to you must be shared with your spouse.
In Florida, an inheritance received individually by one spouse is generally considered nonmarital property and is not subject to equitable distribution, even when received during the marriage. However, commingling inherited funds, transferring ownership, or using marital resources to increase an asset’s value may create a marital interest. Whether an inheritance remains separate depends on how the property was managed and the available evidence.
What Can Qualify as an Inherited Asset?
An inheritance may include:
- Cash distributed from a deceased relative’s estate.
- A home, condominium, or parcel of land.
- Stocks, bonds, or other investments.
- An ownership interest in a family business.
- Jewelry, artwork, vehicles, or family heirlooms.
Under Florida Statutes Section 61.075(6)(b)(2), property inherited separately by one spouse, and assets exchanged for that property, generally qualify as nonmarital. Courts ordinarily set nonmarital property apart from the marital estate.
Property given to you while a relative is alive is a lifetime gift rather than an inheritance. A gift made individually to you by someone other than your spouse may also qualify as nonmarital property.
If you sell inherited jewelry and purchase an investment with the separate proceeds, maintain records connecting each transaction.
For issues involving trusts or substantial family wealth, read about trusts and inheritances in high-asset divorce cases.
Can Mixing Funds Change an Inheritance’s Status?
Yes. Commingling means mixing nonmarital property with marital property. Depositing inherited money into an account that also receives marital earnings can create a significant risk that the funds will become marital. Keeping an account in your name alone does not necessarily resolve the issue.
In Dravis v. Dravis, a Florida appellate court upheld the classification of cash gifts from a spouse’s mother as marital because they were commingled with marital funds. Although the case involved gifts rather than an inheritance, it illustrates the consequences of mixing funds. The court explained that individual account ownership did not preserve the money’s separate character.
Commingling does not automatically mean an entire inheritance becomes marital property. If records can reliably trace inherited funds and establish their separate character, some or all of the funds may remain nonmarital.
If you have already combined funds, gather the complete account history. An attorney can evaluate the transactions before you assume the money remains separate or has become entirely marital.
What Happens to an Inherited Home?
An inherited home may remain nonmarital property, but an increase in its value resulting from either spouse’s efforts or the use of marital funds during the marriage may be considered marital property subject to equitable distribution.
An increase in value caused solely by market conditions generally remains nonmarital. However, using marital funds during the marriage to pay down mortgage principal can create a marital interest that includes the principal reduction and a calculated share of passive appreciation. These contributions do not automatically make the entire inherited home marital property.
Changing ownership presents a separate issue. Transferring title to both spouses as tenants by the entireties creates a presumption that the property is marital. The spouse claiming that all or part of the property remains nonmarital bears the burden of proof, and overcoming the gift presumption requires clear and convincing evidence. These rules appear in Section 61.075(6).
Before changing a deed, refinancing, or funding renovations, ask how the transaction could affect ownership and division. Useful records include the original deed, mortgage statements, appraisals, renovation invoices, and documentation showing where payments originated.
Is Income From an Inheritance Also Separate?
Florida generally treats income from nonmarital property as nonmarital unless the spouses treated, used, or relied upon it as a marital asset. This can matter for inherited rental property or investments.
A valid written agreement may also affect classification.
Bring income statements and any prenuptial or postnuptial agreement to your attorney. Explain how rental income, dividends, or other proceeds were deposited and spent.
Inherited Assets at a Glance
| Situation | General treatment | Helpful records |
|---|---|---|
| Cash or property inherited individually | Generally nonmarital when its separate character is preserved. | Estate distribution documents and account statements. |
| Replacement asset bought with inherited proceeds | Generally nonmarital if acquired solely in exchange for the separate inheritance and its separate character is preserved. | Sale, transfer, and purchase records. |
| Inherited funds mixed with marital earnings | May become marital; classification and tracing require a fact-specific review. | Complete account history and evidence of how funds were used. |
| Marital contributions to an inherited home | Related appreciation, mortgage principal reduction, and some passive appreciation may be marital, without making the entire home marital. | Appraisals, mortgage statements, and renovation records. |
| Home retitled as tenants by the entireties | Presumed marital; overcoming the gift presumption requires clear and convincing evidence. | Recorded deeds and evidence of ownership intent. |
| Rent or dividends from inherited assets | Generally nonmarital unless treated, used, or relied upon as a marital asset. | Income statements and spending records. |
These are general principles. An asset’s treatment depends on the evidence and applicable law.
What Records Should You Gather?
Start with documents showing where your inheritance came from and how it was handled during the marriage.
Assets acquired during the marriage are presumed marital unless established as nonmarital. If you claim an inheritance should remain separate, you need evidence supporting that classification. A helpful checklist includes:
- The will, estate distribution records, or relevant trust documents.
- Statements showing when inherited funds arrived.
- Bank and investment statements covering later transfers.
- Deeds and records of ownership changes.
- Purchase and sale documents for replacement assets.
- Records of improvements and mortgage payments.
- Any written marital agreements.
Organize these materials chronologically. A simple timeline can help your attorney identify missing records and understand whether an asset changed form during the marriage.
Preserve existing documents and seek advice before transferring, spending, or retitling disputed property. Moving money after a disagreement begins can make the financial history harder to evaluate.
Contact C. Alvarez Law for Help With Your Divorce
Questions about inherited assets deserve attention before you agree to a property settlement. The original inheritance, later transactions, and supporting records all matter. If you are getting divorced in Florida, contact C. Alvarez Law for help reviewing your inheritance, understanding property division, and making informed decisions about your divorce.
Christina C. Alvarez
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