If you are considering divorce in California, you may wonder about the laws involved. Most states operate under equitable distribution laws, in which assets are split fairly (but not necessarily 50/50) in a divorce. However, California is one of nine states that operate under community property laws when it comes to property division. This means that assets acquired during the marriage are generally owned equally by both spouses, regardless of the title. So even if a vehicle you purchased while married is solely in your name, your spouse still has a claim to it if you divorce.
Inheritances are treated a little differently. Inherited money is not automatically considered community property in California. It is generally considered separate property. This applies even if you are married at the time you receive the inheritance.
However, this does not mean you can do what you want with the property, and it will always remain yours only. What does this mean? Because inheritance is separate property, it belongs only to you as long as it is kept separately. “Kept separately” means you did not give it to anyone else, including your spouse.
To ensure your inherited money remains separate property, it is crucial to keep it separate from your marital finances. If you do not, and it ends up mixed up with marital assets, this is called commingling. Once assets are commingled, they are fair game to both parties in a divorce.
Keeping Inheritances Separate
Keeping an inheritance separate from marital assets is not an easy task. Here are some things you should do to keep your money separate and not subject to division in a divorce:
- Keep it in a separate account. The inherited funds should be kept in a dedicated bank account. Avoid using this money for joint expenses.
- Avoid joint ownership. Along the same lines, avoid joint ownership of inheritance money. Do not put your spouse’s name on accounts or assets that you receive with the inheritance.
- Don’t use the inheritance for marital benefit. For example, inherited real estate should not be used as the family home, or else it will lose its separate property status.
- Keep records. Keep track of all financial activities that relate to the inherited property. This includes bank statements, deposit slips, and withdrawal records.
- Seek legal help. An experienced family law attorney can answer your questions and give you accurate advice.
Contact Us Today
While California is a community property state, with most assets split 50/50, inheritances are one of the few exceptions. If you inherited money or property after a loved one’s passing, it’s all yours, but you need to take the proper steps to protect it.
The Law Offices of Oliver Gutierrez in Redwood City can answer your questions about inheritances and other property division matters in a divorce. We are one of the few Spanish-speaking family law attorneys in the San Mateo County area. Se habla español. Schedule a consultation today by filling out the online form or calling (650) 285-1673.
