How Are Gifts and Inheritance Handled in Asset Division?

Navigating through a divorce brings its own set of complexities and emotional challenges, particularly when it comes to the division of marital assets. One area that often causes significant concern is understanding how gifts and inheritances are handled. For many, gifts and inheritances are not just financial assets but hold deep personal and sentimental value, making the prospect of losing them in a divorce particularly distressing. This post aims to help you understand the legal landscape surrounding gifts and inheritances during divorce proceedings. Our goal is to alleviate some of your worries and equip you with the knowledge needed to protect what’s most important to you. 

What Are Gifts and Inheritances?

Before delving into how gifts and inheritances are divided, it’s essential to understand how they are defined. A gift is something given voluntarily without expecting anything in return. An inheritance is a sum of money or assets passed down from one generation to another after a person’s death. Both gifts and inheritances are often considered separate property, meaning they are not subject to division in a divorce. However, some exceptions and nuances must be taken into account.

Factors That Determine the Treatment of Gifts and Inheritances in Divorce

The treatment of gifts and inheritances in divorce can vary depending on several factors. These may include the timing of when the gift or inheritance was received, whether it was given to one spouse individually or to the couple jointly, how the gifts and inheritances were handled during the marriage and Indiana law. 

Timing

The timing of when a gift or inheritance was received can play a significant role in how it is treated during divorce proceedings. In most cases, if a gift or inheritance was received before the marriage, it will likely be viewed as separate property and not subject to division. However, if a gift or inheritance was received during the marriage, it may be deemed marital property and divided between spouses.

Individual vs. Joint Ownership

The ownership of gifts and inheritances can also impact how they are handled in divorce. If a gift or inheritance was given to one spouse specifically and not jointly with the other spouse, it is more likely to be considered separate property. However, if the gift or inheritance was given to both spouses jointly, it may be subject to division in a divorce.

Handling of Gifts and Inheritances During Marriage

Another factor that may impact the treatment of gifts and inheritances in divorce is how they were handled during the marriage. If a gift or inheritance was commingled with marital assets, meaning it was combined with joint finances and used for shared expenses, it may lose its status as separate property. Additionally, if a gift or inheritance was used to purchase joint property, such as a house or car, it may also become subject to division in a divorce. 

Indiana Law

Finally, it’s essential to consider the laws of your state when it comes to gifts and inheritances in divorce. Each state has laws and guidelines for handling marital assets, including gifts and inheritances. In Indiana, for example, courts will consider several factors, such as the length of the marriage, contributions made by each spouse to acquiring or improving the assets, and the economic circumstances of each spouse when making decisions about the division of marital property.

Protecting Your Gifts and Inheritances

While many factors can impact how gifts and inheritances are handled in divorce, there are steps you can take to protect them. Keeping records and documentation of all gifts and inheritances received before and during the marriage is essential. If possible, keep these assets separate from joint finances and do not combine them with marital assets. Additionally, consider a prenuptial or postnuptial agreement that clearly outlines the division of gifts and inheritances in case of divorce. Finally, seeking the guidance of a reputable family law attorney can help alleviate some of the stress and ensure that your rights are protected during the divorce process. With their experience and knowledge, they can provide personalized advice on handling your gifts and inheritances in a divorce.

Move Forward With Confidence

Ultimately, while navigating through a divorce is never easy, understanding how gifts and inheritances are handled can help alleviate some of the stress and worry. If you’re concerned about how your gifts and inheritance will be divided, contact our team at López Law Office, P.C. today. Our compassionate and experienced attorneys are here to guide you through this difficult time.