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If you are considering a divorce or you think your spouse is considering one, there are many concerns that may race through your head.  One question I am often asked as an attorney who has practiced family law here in Oakland County, Michigan for almost forty years is what will happen to my inherited property if I get divorced.  This blog is written to generally address that issue.  If you have specific questions about your own matters, you should contact us to schedule a consultation before filing for divorce.

Is My Spouse Entitled To Half Of My Inheritance?

The answer in most cases is probably not.  When dividing any type of property in Michigan, the courts must first determine whether the property is separate or marital.  If it is marital then the property is subject to a roughly equal division, it if is separate, then it is typically considered to be the separate sole property of one spouse and not subject to division or an offset of other property.  Marital property is any property/cash that comes into the hands of either spouse through her or his efforts while the couple is married.  Marital property is considered marital regardless of whether it is titled or held in the name of one spouse, the other spouse or both.  Separate property is limited to specific categories of property that the Michigan courts and legislature have decided should remain the property of the spouse who owns it.

Inheritances are specifically designated as the separate property of the inheriting spouse.  However, the inheriting spouse has to keep that inheritance separate and not contribute marital property or otherwise commingle the asset.  If the inheriting spouse contributes marital funds to the inherited asset for it's upkeep or otherwise, or adds the other spouse to the title or names the other spouse on the account, then the court may find that the inheritance has lost it's nature as separate and some or all of the account is subject to division between the spouses. 

If the inheriting spouse takes money out of an inherited account and uses that money on a marital asset, then only the amount that has come out of the account will be considered marital property, the remaining money in the inherited account will remain separate.  Finally, there are some other very specific factors that, if present in the case, would allow the court to invade the separate asset and distribute some if it to the other spouse, although this is relatively rare.

This blog very generally addresses the issue of inheritances and divorce or separation, if you have personal concerns about your own inheritance and a potential divorce, please do not hesitate to contact us by clicking on this link or calling (248) 608-4123.