Is Inherited Money Marital Property in Florida?

Is Inherited Money Marital Property in Florida?

A dispute over money or property can lead to conflict even in the most cordial of divorces. It’s one thing for soon-to-be-former spouses disagree over money or assets that they have earned during their marriage. However, inherited assets often have a sentimental value to one of the spouses, which makes then an entirely different matter. According to Florida law, a spouse may be entitled to a part of your inherited assets, but there are certain things you can do to protect them.

Florida as an Equitable Distribution State

Florida practices equitable distribution, meaning that the court aims to divide marital property during divorce in an equitable and fair manner. The distribution should be equal, and the court will begin with that assumption. However, the distribution may be adjusted if appropriate for a specific case. Many factors come into consideration, including the duration of the marriage, the economic circumstances of each spouse, the contribution of one spouse to the other’s education or career, and each spouse’s contributions to the marriage.

Inheritance as Marital Property

The division of marital assets, property, and debts in Florida is based on what was accumulated during the marriage by both spouses. However, in some cases, only one spouse will be a beneficiary to assets when someone passes away. When this happens, where the assets go will tell you how they will be divided.

For example, A and B are married and, during their marriage, A inherits $100,000 from a relative. The money is kept in a savings account with only A’s name on it, and it is not used for the couple’s living expenses. In the meantime, B files for divorce and wants half of the $100,000. Since the money wasn’t used to enhance their lifestyle together or placed in a joint bank account, the money is most likely going to be considered non-marital and will belong to A. The money would be ruled marital funds if it was used to benefit them both or put into a joint account.

If the couple has children and their divorce case involves alimony, the rules are somewhat different. Alimony is based on the length of the marriage, the marital lifestyle, the needs of a spouse, etc. If one spouse is the beneficiary of the inherited money, the ability or need to pay the alimony is lessened.

For example, A and B are married, and A inherits $100,000 from a relative. They decide to divorce, and B claims a need for alimony. If the inheritance is considered a non-marital asset, A has all the money available immediately. A may still have to pay alimony, which depends on his or her ability to pay alimony, the length of the marriage, and A’s actual needs. The fact that A now has certain funds available will also be factored into what his or her actual needs are. If the couple has been living on $500,000 per year, then $100,000 isn’t going to provide for his or her needs in the long term.

If you need help to determine whether your inherited money is considered a marital or non-marital asset, as well as how to prove the money is inherited, call Debora A. Diaz, Esquire at 727-846-1802 to schedule a consultation.

Attorney Diaz is also a Supreme Court Certified Family Law Mediator and is available to mediate your case.

Written by Debora A. Diaz, Esq.