Divorce can be a long and drawn-out process with multiple stages, including property division. And, if you are going through a Los Angeles divorce, you may wonder how your inheritance will affect the process.
Inheritances
An inheritance is a type of property that you receive from someone who has passed away, such as a parent, relative or friend.
In California, an inheritance is considered separate property. This means that it belongs to you alone and not to your spouse. However, there are some situations where your spouse may have a claim to your inheritance or a portion of it.
Commingling
One of these situations is when you commingle your inheritance with your community property.
Community property consists of the assets and debts you and your spouse acquire during your marriage. In California, community property is considered to be jointly owned by the spouses.
If you mix your inheritance with your community property – for example, by depositing it into a joint bank account or using it to buy a house that you both live in — it may lose its separate character and make it at least partly subject to division.
Benefit your spouse or your marriage
Another situation is when you use your inheritance to benefit your spouse or your marriage. For example, if you use your inheritance to pay off your spouse’s debts or to improve your marital home, you may be creating a transmutation.
A transmutation is when you change the nature of your property from separate to community or vice versa. If you transmute your inheritance into community property, you may have to share it with your spouse in a divorce.
Divorce can be a long and drawn-out process with multiple stages, including property division. And, if you are going through a Los Angeles divorce, you may wonder how your inheritance will affect the process.
Inheritances
An inheritance is a type of property that you receive from someone who has passed away, such as a parent, relative or friend.
In California, an inheritance is considered separate property. This means that it belongs to you alone and not to your spouse. However, there are some situations where your spouse may have a claim to your inheritance or a portion of it.
Commingling
One of these situations is when you commingle your inheritance with your community property.
Community property consists of the assets and debts you and your spouse acquire during your marriage. In California, community property is considered to be jointly owned by the spouses.
If you mix your inheritance with your community property – for example, by depositing it into a joint bank account or using it to buy a house that you both live in — it may lose its separate character and make it at least partly subject to division.
Benefit your spouse or your marriage
Another situation is when you use your inheritance to benefit your spouse or your marriage. For example, if you use your inheritance to pay off your spouse’s debts or to improve your marital home, you may be creating a transmutation.
A transmutation is when you change the nature of your property from separate to community or vice versa. If you transmute your inheritance into community property, you may have to share it with your spouse in a divorce.
Avoid it
To avoid these situations, you should consider keeping your inheritance separate from your community property and avoiding using it for marital purposes. You should also keep records of your inheritance and how you used it.
You may also consider signing a prenuptial or postnuptial agreement with your spouse that clarifies how your inheritance will be treated in case of a divorce.
To avoid these situations, you should consider keeping your inheritance separate from your community property and avoiding using it for marital purposes. You should also keep records of your inheritance and how you used it.
You may also consider signing a prenuptial or postnuptial agreement with your spouse that clarifies how your inheritance will be treated in case of a divorce.