When An Inheritance Becomes Marital Property In Florida

Those embroiled in divorces typically assume that inherited property is always considered separate property. As such, it should not be subject to equitable distribution or split in half between the two parties in the event of divorce. Although it’s true that inheritance is often treated as nonmarital property, the manner in which the spouse manages the inheritance can alter its nature under the law. In this article, we’ll discuss a case where an inheritance was placed in a joint bank account, causing it to be transmuted into marital property.

Background of the case 

The aforementioned case concerned the dissolution of marriage and the division of some inherited money. Whether the former husband’s inheritance constituted marital property was one of the key questions the court was asked to tackle. During the marriage, the inherited money had been placed in a joint bank account and spent in such a manner that the distinction between marital and non-marital property became indistinguishable.

Under Florida law, inheritances received during marriage are considered non-marital property. Nevertheless, the spouses’ behavior is also considered when determining whether the inheriting spouse treated the inherited property as part of the marital estate. The court found that certain portions of the inherited funds should be considered marital property and included them in the equitable distribution process.

Since it was the husband whose money was equitably divided, it was he who filed an appeal claiming the trial court abused its discretion and that his inheritance should be considered separate property.

The appeal 

The Fourth District Court of Appeal addressed the question of inherited property in the context of Florida law, specifically with respect to the element of intent. When it comes to inheritances received by one spouse during the course of a marriage, the crucial question is whether there was an intent on the part of the spouse to preserve the inherited property as non-marital, or whether there was something about the way the funds were used which indicated the presumption of a gift to the marriage.

Inherited money would maintain its character as non-marital property if it remained separate from the marital estate, identifiable, and unmingled. Conversely, placing inheritance money in a joint account would be enough to create the presumption of an intent that such money serves as a gift to the marriage.

In accordance with the above-stated legal standard, the appellate court approved the trial court’s reasoning with regard to inherited monies but reversed certain aspects of the final judgment that did not deal with the inheritance.

Key takeaways 

In the vast majority of cases, inherited money will remain the sole property of the spouse who inherited it. However, if the inheritance is mixed with marital funds or placed in a joint account, the money is considered “commingled,” and thus part of the marital estate.

Talk to a Tampa, FL, Divorce Lawyer Today 

Faulkner Law Group, PLLC, represents the interests of Tampa residents during their divorce. Call our Tampa family lawyers today to schedule an appointment, and we can begin reviewing your case right away.

Source:

case-law.vlex.com/vid/lakin-v-lakin-no-888819193