The division of assets is an important and often complex issue in any divorce, particularly in an equitable distribution state like Pennsylvania. If you’re wondering whether your inheritance will be divided during your divorce and how you can protect your assets, continue reading and speak with a knowledgeable York County, PA property division attorney today.
Is Pennsylvania an Equitable Distribution State?
Yes, Pennsylvania is an equitable distribution state when it comes to dividing assets in a divorce. “Equitable” means fair, meaning that instead of dividing marital property equally through a 50/50 split, the courts aim for a just division. Equitable does not necessarily mean equal, so it may result in an uneven distribution of assets and debts. The court considers numerous factors to determine a fair outcome, such as the length of the marriage, the standard of living, the parties’ economic circumstances, and contributions to the marriage.
Only marital assets and debts are subject to division. Property or liabilities considered separate will remain separate. The court’s focus is generally on the assets and debts accumulated from the date of marriage until the final date of separation.
Is Inheritance Divided in a PA Divorce?
Inheritance refers to assets such as money, property, or possessions received by an individual from the estate of a deceased person. In a Pennsylvania divorce, inheritance is generally classified as separate property, not marital property. This means that if you received an inheritance before or during the marriage, the inheritance itself is typically not subject to equitable distribution.
The purpose of separate property is to recognize that certain assets were acquired independently of the marital relationship. Since an inheritance is a gift to one spouse alone, it is generally shielded from division in a divorce settlement. Therefore, the inheritance itself is not divided in a PA divorce.
However, there is an important distinction. While the principal amount of the inheritance remains separate property, any appreciation in the value of the inherited asset during the marriage can be considered marital property. Also, an inheritance can potentially transform into marital property if it is “commingled.” The answer to whether your inheritance will be distributed in your divorce depends on the specific circumstances of the situation.
What is Commingling?
Commingling occurs when separate property (such as an inheritance) is mixed with marital property in such a way that it loses its separate character. Once commingled, the inheritance may be treated as a marital asset subject to equitable distribution. This often happens when the inherited funds are deposited into a joint bank account or used to purchase or improve jointly titled property. To maintain an inheritance as separate property, the spouse must keep it separate and clearly traceable.
Examples of commingling include:
- Depositing inherited funds directly into a joint checking or savings account used for household expenses
- Using an inheritance as the down payment on a house titled in both spouses’ names
- Transferring inherited stock or investments into a jointly owned brokerage account
For information on your specific case, reach out to an experienced divorce lawyer today.
