If you’re starting the divorce process, one of your questions may be about your inheritance being split in a divorce. It’s common to wonder whether you have to divide your estate in a divorce. Whether you’ve received that inheritance before marriage or during it, you must understand how inheritance laws work in divorce cases. Inheritance and gifts have specific status under California law.
Gifts Are Separate Property in California
Under the laws of the State of California, anything given to you as a gift is considered separate property. The good news about inheritance is that it’s generally considered a gift. So that means you theoretically don’t need to divide it at the time of your divorce. Because it was gifted to you, it’s yours. You don’t need to share it, and you don’t have to give half of it to your spouse if your marriage doesn’t work out.
At least, that’s the rule in theory. Real-life, however, isn’t always built on theory. Sometimes some other issues or nuances can affect how a divorce is handled. You want to be clear on the truth of the matter, not just what seems like it should be right or fair. In short, be aware that there are exceptions to this “rule.”
There Can Be Important Exceptions
The biggest reason people end up being required to divide their inheritance during a divorce is that they used it for the marriage or shared it willingly. In other words, whether you will have to divide your inheritance depends on what you did with it. If you have a loved one who passes away while you’re married and leaves you an inheritance, you should keep it separate. If you put it into a joint checking account with your spouse, it’s now community property.
You’ve transmuted the characteristics that inheritance had as something that was gifted to you for your personal use. As soon as you commingled it with other joint funds and allowed joint access, you changed how it is seen under the law. If you put it into a joint account, you will have to divide it if you divorce. If you keep it separate, you won’t be required to divide it. That’s such an important distinction. If you receive an inheritance, open a different account that’s only yours, and put the money there.
Work With a Trusted Attorney for Guidance
If you’ve already commingled your inheritance funds or have questions about how to protect an inheritance you’re about to receive and you’re planning a divorce, getting legal advice is the first step. Reach out to the Mohajer Law Firm today, and let us help you make the right moves and decisions for your inheritance and your divorce proceedings. That can help protect your assets and give you peace of mind as you work through the divorce process. Having guidance and support can help.