Inheritance Disputes in a Kendall County Divorce      

 Posted on November 02, 2022 in Division of Property

Asset division during divorce can sometimes exacerbate acrimony between the parties, especially if the dispute involves inherited assets. Under Illinois law, inheritance is considered non-marital property. However, ascertaining whether the inherited property ever shifted into marital property can be complicated. Once inherited assets are commingled with marital property, the inherited property can become marital.

A divorce attorney proficient in inheritance matters can help identify whether inherited assets are marital or non-marital. Additionally, a divorce attorney can help draft or modify marital agreements that protect your inheritance or your rights to an inheritance.

Means of Inheritance Protection

If a married person wishes to ensure that their inherited assets remain non-marital property, there are several ways to do so.

• Marital Agreement - Both types of marital agreements, prenuptial and postnuptial, can expedite divorce proceedings as long as the stated provisions are straightforward and explicitly defined. In a prenuptial agreement, each spouse can specify that current and future inherited assets remain non-marital. If a spouse has a change of heart, the prenuptial agreement can always be modified. A postnuptial agreement is especially valuable if there is not a prenuptial agreement. This agreement can also define spouses’ property rights.

• Separate Inherited Assets – open a separate bank account for inherited funds under your name. Avoid paying for joint property or debts with that inherited money. Do not add your spouse’s name to the title of any inherited physical assets, like a boat, a car, or real estate.

When Inheritance Becomes Marital Property

Commingling involves mixing non-marital assets with marital property. If a spouse inherits funds from a relative and then deposits those funds into a marital, joint bank account with other funds, that act commingles the assets and causes a transmutation. So, the inherited funds become marital. Sometimes the intent to commingle assets is for a temporary benefit. If a spouse can identify the inherited funds, they can claim the asset as non-marital.

Transmutation occurs once the commingled assets are unidentifiable, rendering the assets as marital property. For example, if spouses use commingled funds to purchase a family home, the inherited money is converted to marital property. Including a spouse’s name on an inherited family business deed is also considered transmutation. So, that family business becomes subject to liquidation and division of funds, co-ownership between divorcing spouses, or one spouse buying out the company from the other spouse.

Contact a Family Lawyer in Kendall County

At The Law Office of Matthew M. Williams, P.C., trustworthy divorce attorney Matthew M. Williams understands the complexities of property division matters. Certified in both collaborative and cooperative law, family lawyer Matthew M. Williams vigorously advocates for fair and peaceful solutions. If you are engaged in an inheritance dispute, assertive attorney Matthew M. Williams can help protect your inheritance. Alternatively, if you were promised a share of an inheritance, Matthew M. Williams will strategize and fight for what is owed to you. For all your inheritance issues, contact an Oswego divorce attorney at 630-409-8184.

Sources:

https://www.ilga.gov/legislation/ilcs/documents/075000050k503.htm

https://www.forbes.com/sites/christinefletcher/2022/02/08/protecting-your-inheritance-from-your-spouse/?sh=afc63af64b92