Is an Inheritance Considered a Marital Asset in Maryland?

When it comes to divorce proceedings, the division of assets can be one of the most contentious issues. One specific type of asset that often raises questions is an inheritance. Whether an inheritance is considered a marital asset can significantly impact the outcome of a divorce. In Maryland, the rules regarding the classification of inheritance as a marital asset are quite specific, and understanding these rules is crucial for anyone navigating a divorce.

Marital vs. Non-Marital Property

In Maryland, the distinction between marital and non-marital property is essential in divorce cases. Marital property includes assets and debts acquired during the marriage, regardless of whose name is on the title. Non-marital property, on the other hand, encompasses assets acquired before the marriage, gifts, or inheritances received by one spouse, and any property explicitly excluded by a valid agreement, such as a prenuptial agreement.

Inheritance as Non-Marital Property

Generally, inheritances are considered non-marital property in Maryland. This means that if one spouse receives an inheritance during the marriage, it belongs solely to that spouse and is not subject to division in the event of a divorce. However, this classification holds true only under certain conditions. The inherited property must be kept separate from marital assets. Once commingled with marital property, the inheritance may lose its non-marital status.

Commingling of Inherited Assets

Commingling occurs when inherited assets are mixed with marital assets to the extent that they can no longer be distinctly identified. For example, if an inherited sum of money is deposited into a joint bank account used for marital expenses, it may be considered commingled. Similarly, if inherited funds are used to purchase a home that is jointly owned or to improve a marital home, those funds might also be deemed marital property.

Tracing Inherited Assets

To protect an inheritance from being classified as marital property, it is crucial to keep detailed records that clearly trace the source of the funds or assets. Documentation such as bank statements, receipts, and written agreements can help prove that the inheritance was kept separate from marital property. In some cases, financial experts may be employed to trace the origin of funds and demonstrate that they remain non-marital property.

Protecting Inheritance

There are several steps individuals can take to safeguard their inheritance from being considered marital property. Keeping inherited assets in separate accounts, avoiding the use of inherited funds for marital expenses, and considering prenuptial or postnuptial agreements are all effective strategies. Such agreements can explicitly state that any inheritance will remain the separate property of the receiving spouse, regardless of how it is used during the marriage.

Divorce Attorney in Maryland

In Maryland, an inheritance is typically considered non-marital property and thus not subject to division in a divorce. However, the key to maintaining its non-marital status lies in keeping the inheritance separate from marital assets. Proper documentation and clear financial boundaries are essential. Don’t rely on guesswork or maybes; always get professional help in understanding these nuances. The team at The Law Offices of Sandra Guzman-Salvado is ready to help you protect your inheritance and ensure a fair division of assets in your divorce. Contact us today!