An article posted last month in Forbes explores the case of a woman who recently came into a substantial inheritance from her grandfather. Not long after he passed away and left the money to his granddaughter, she and her husband began experiencing marital problems that ultimately resulted in divorce proceedings. The woman is now, obviously, highly concerned that she could be forced to give up a large share of inherited money to her husband.
When a spouse inherits money is it considered a marital asset and could this happen in Tennessee? Though the case in Forbes is certainly eye-opening, if handled properly, there should be no reason for the woman to fear giving up any of her inherited money to her husband. However, unwise handling of a monetary inheritance, like commingling the inherited funds with joint marital account(s), can pose a risk of the money not being exclusively retained by the spouse who inherited it if the couple enters into divorce proceedings.
When is inheritance separate property?
Inheritance is generally considered to be separate (non-marital) property in Tennessee. This means that when a person receives an inheritance during the course of a marriage, that money is assumed to remain the personal property of the recipient unless other actions are taken which transform it into a marital asset.
When is inheritance marital property?
Separate inherited property can become a marital asset under these two scenarios:
- The first and most common situation is when the inherited asset is commingled with other marital assets. Once it is commingled, it is difficult, if not impossible, to distinguish the two different types of assets from each other.
- The second situation in which a non-marital inheritance can become a marital asset is through transmutation. This, in effect, can occur when the parties treat the otherwise non-marital asset as if it is marital.
A good example of an inheritance remaining an inheritance is when one receives the money, then he or she places the funds into a bank account in his or her name only and leaves the money there instead of using it for marital expenses. No matter what the other spouse claims, this money should clearly remain the separate, non-marital property of the spouse who inherited it.
To prevent your inheritance from becoming marital property, you should seek the services of attorney Donna Wagner — especially if it’s a large sum of money. Mrs. Wagner can advise you on a strategy of not commingling your money as well as not using the money to pay the mortgage on your home, or for home repairs or renovations.
Real-life results
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I know for certain that If I am needing an attorney again in the future, I will be using Donna Wagner. There are so many great things to say about Donna. However, I believe what I appreciated most was how Donna handles special situations, and I assure you, my circumstances were just that! Donna was very thorough during my entire case. She was able to address my unique case but also do so with legal basis even though the courts may not always allow for such situations. Donna was very thorough each step of the way and was certain to not leave any stone un-turned. One thing I really liked about Donna was her fire. When situations arose, she can be more than passionate about her job and serving justice to those who deserve it. I also want Donna’s clients to know that she was very timely with me in her communications with me. Whether by email or phone, she was always just a call or a message away. When being in a legal situation, I know from previous experience, being able to reach your attorney means everything. I am more than pleased with the results that I recieved from Donna Wagner, and I assure you my case turned out better than I had imagined and even for a fair price. Donna Wagner rocks!
I obtained Mrs. Donna Wagner’s services in 2012 to help with my charge of driving under the influence. I first called several other attorneys, but none of them were willing to listen to my case. Mrs. Wagner not only took the time to listen but went out of her way to be sensitive to my issues, respond quickly to my questions, and help me understand this unfamiliar process. It was clear to me from the beginning that she knew the system well and was very thorough in her exploration into my case. With her experience and knowledge of the Mt. Juiliet court system, combined with her adept use of the evidence at hand, she was able to get my charges significantly reduced. I could not be more happy with my choice of attorney. I am certain that I would not have had such a successful outcome without her guidance and skill.
