What Happens to Inherited Property in an Illinois Divorce?

 Posted on December 27, 2024 in Asset Division

One of the many challenges of a divorce regards how your assets will be divided. If you have inherited property, you might wonder how it will be treated during the divorce process. To protect what is rightfully yours, it is vital to conduct careful planning and have a clear understanding of the law. An Illinois divorce attorney can help you protect your inheritance and navigate the intricacies of asset division.

Is Inherited Property Considered Separate or Marital Property?

Under Illinois law, inherited property is generally classified as separate property. This means it will not be divided during a divorce. However, for the inheritance to maintain its status as separate property, it must remain separate from marital assets. Mixing, or commingling, inherited property with marital property can cause it to lose its classification as separate property.

What Happens if Inherited Property Is Commingled?

If the inherited property becomes commingled with marital assets, it may be reclassified as marital property. For instance, if you use inherited funds to buy a home that is titled in both spouses’ names or deposit inherited money into a joint bank account, the court may consider the property to be a marital asset.

When disputes arise about whether an inherited asset should be treated as marital property, the person claiming it as separate property must provide evidence to support his or her claim. Detailed records, including account statements or documentation of the inheritance, are often critical in resolving these disputes. Without clear evidence, it can be especially challenging to protect your inheritance.

How Can You Protect Your Inheritance During a Divorce?

To safeguard your inheritance, it is essential to take specific steps to maintain its separation from marital assets. These precautions can help ensure your inheritance remains yours if the marriage ends. Some key strategies include:

• Keep it in a separate account: Avoid depositing inherited money into joint accounts shared with your spouse. Use an account that is solely in your name.

• Document its source: Keep records of the inheritance, including will documents, gift letters, and account statements.

• Avoid using it for marital purposes: If you use your inheritance to purchase or improve shared property, it might be considered marital property.

• Consider a prenuptial or postnuptial agreement: These contracts can specify that your inheritance will remain separate property in the event of divorce.

Contact a DuPage County, IL Divorce Attorney for Asset Protection

If you are going through a divorce and want to protect your inheritance, it is important to seek the guidance of a skilled attorney. A Wheaton, IL divorce attorney at Goostree Law Group can help ensure that your assets are treated fairly and provide insights about state laws. Call us at 630-364-4046 to schedule a free consultation and learn more about how our team can assist you.