In a Pennsylvania divorce, the division of assets is determined based on equitable distribution. While many assets acquired during the marriage are subject to division, an area of concern for many individuals is what will happen to inherited property. Understanding how inheritance is treated by Pennsylvania courts is crucial for protecting your separate assets during divorce proceedings. Continue reading for more information and work with a knowledgeable Montgomery County property division lawyer today.
What is Inheritance?
Inheritance refers to the assets (like money, property, and other valuables) that an individual receives from a deceased person, usually a relative, as part of the distribution of their estate. It can take many forms, including real estate, bank accounts, stocks, retirement funds, or personal possessions, and is typically transferred according to a will or state intestacy laws.
Is Pennsylvania an Equitable Distribution State?
Yes, Pennsylvania is an equitable distribution state. This means that, in a divorce, marital assets and debts are not necessarily divided equally, but rather in a way the court deems fair and equitable based on a variety of factors, such as the length of the marriage, the standard of living, and the economic circumstances of each party.
Equitable distribution applies only to marital property. Marital property is generally defined as any property acquired by either party during the marriage, from the date of marriage until the date of separation. Separate property, on the other hand, is not subject to division. This typically includes property acquired before the marriage, as well as gifts or inheritances received by one spouse, even during the marriage.
How is Inheritance Treated in a PA Divorce?
In Pennsylvania, inheritance is generally considered separate or non-marital property. This means that if you received money, real estate, or other assets as an inheritance before or during the marriage, the value of that inheritance is yours alone and is not subject to equitable distribution during a divorce. Only assets that qualify as marital property are divided between the spouses. Therefore, inheritance is typically protected and not split with your former spouse.
However, the appreciation or increase in value of the inherited asset during the marriage may be considered marital property and subject to division, and inheritance can lose its protected status through commingling. Commingling occurs when inherited funds are mixed with marital funds or property, such as depositing inherited money into a joint bank account used for marital expenses, or using the funds to purchase property together. Once separate property is commingled, it can become difficult or impossible to trace and separate, which can potentially convert a portion or the entire amount into a marital asset subject to division.
To protect your inheritance and rights during a divorce, consult with a Pennsylvania family law attorney today.
