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    • Lisa D. Stern
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  5. Will Your Inheritance Be Affected by a Divorce Settlement?

Will Your Inheritance Be Affected by a Divorce Settlement?

On Behalf of Lisa D. Stern | Oct 20, 2021 | Divorce |

When a high-income Michigan couple is going through a divorce it can be a complicated affair. There are many things that need to be worked though with property division often being one of the most contentious. Michigan is an equitable distribution state which means property accrued during the marriage is subject to equitable distribution among the couple. While most property and debt acquired by a couple during the marriage typically constitutes marital property, not everything each spouse owns belongs to both of them. An inheritance can be one asset that is not subject to equitable distribution.

Inheritance in Michigan divorce

In Michigan, the court will decide if an inheritance is marital or separate property. If the spouse receiving the inheritance was able to keep it separate from all marital assets the court will consider it their sole property. However, if the spouse receives the inheritance, deposits it in a joint account or comingles the asset in any way, such as improving a marital asset, then the court will probably consider it marital property. The courts may also consider the length of the marriage, whether the marital assets are insufficient for support & maintenance, or if both parties reasonably anticipated the inheritance for use in retirement.

High-asset divorce attorney

An inheritance can be a complicated issue in a high-asset divorce. Having an attorney who specializes in high-asset divorce can advise their client on this matter and all other issues that may arise during the divorce process. They can help with the daunting process of dividing assets and ensure their client’s interests are protected both now and into the future.

 

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