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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.

Will

To help avoid the need for the state to decide how your estate should be distributed, it’s a good idea to have your last testament and will in place. Without it, the state will determine the division of your assets according to its intestate succession statutes, which may occur contrary to your wishes. According to Florida law, any provisions of your will that would benefit your former spouse will be invalidated, unless the will was created after the divorce or states otherwise. If you haven’t provided a secondary designation for assets that would otherwise go to your former spouse, the state will have to determine where the assets should go.

If a spouse dies during a pending divorce, the surviving spouse will inherit through the deceased’s will. In case there is no will, and if there are no children from a previous relationship or outside the marriage, the surviving spouse will inherit all assets. It won’t be possible to completely disinherit a former spouse until the divorce is finalized – a surviving spouse can claim up to 30% of the value of the deceased’s estate. These rights can be waived only by a prenuptial or postnuptial agreement.

After Divorce

After the divorce is finalized, the law treats your former spouse as if they had died at the time of the marriage dissolution. Once the divorce is complete, there is no need to change your will, but it is still a good idea to change beneficiary designations on all assets where your former spouse is named. Also, you will want to revisit any revocable trust you had created to handle some of your assets. If the trust was created before the divorce and your only and/or primary beneficiary is your former spouse, the provisions that benefit him or her will be invalidated by Florida law. When it comes to distributing your assets according to your wishes, your trust could become meaningless without a secondary beneficiary.

Beneficiary Forms

When filing for divorce, you will have to provide a comprehensive list of all your assets, including your insurance policies, retirement plans, and other types of assets that require you to name a beneficiary. Make sure to update those forms after the divorce by naming someone else as the beneficiary. Failing to update those forms can cause unnecessary confusion and stress in case of your death.

Children

If you have children from the marriage with your former spouse, you may not be able to prevent him or her from becoming their guardian. However, you can keep your former spouse from taking control of your assets that you leave for the children (including your home, bank accounts, insurance proceeds, etc.).

If you have questions about divorce, child support, shared parental responsibility, time-sharing/parenting time, and parenting plans, contact Debora A. Diaz Esquire at 727-846-1802 to schedule a consultation or use the Scheduling Link: https://deboradiazlawscheduling.as.me/.

At this time, all consultations are by telephone or video conferencing in order to protect our staff and clients.

Attorney Diaz practices exclusively in divorce and family law in Florida. Debora A. Diaz is also a Florida Supreme Court Certified Family Mediator.

Written by Debora A. Diaz, Esquire.