Understanding the financial and legal implications is crucial in determining whether fighting over the inheritance is worth it. Disagreements over the inheritance can lengthen the divorce proceedings. Their lawyers can simply file a request for the inheritance to be considered as a marital asset. The spouse requesting the inheritance isn’t required to do much. Those who received an inheritance are required to prove that the inheritance is personal property. This can lead to lengthy and expensive legal battles.
If the divorce was contentious and if emotions run high, it’s not unusual for spouses to fight over inheritances. Getting into Lengthy Legal Fights Over Inheritancesĭivorces often bring out the worst in people. Liquid funds may go towards paying off marital debts to simplify the divorce proceedings. In these situations, the inheritance may need to be divided evenly and distributed to both partners. Pay off joint expenses, and was placed in a joint account.Pay off regular bills, like hydro bills or electricity bill.For example, the inheritance is considered to have benefited both spouses if it was used to: Basically, a lawyer can argue that an inheritance has transformed from being personal property to a marital asset if it was used to benefit both spouses. There’s only a thin line that separates a marital asset from a personal property. A Thin Line Between Shared Resource versus Individual Asset Personal property is an inheritance that was solely used for the benefit of the individual. Inheritances are an exempted unless they were used for the benefit of the children or both spouses. Figuring out whether an inheritance is a marital asset or a personal asset is particularly tricky.Īccording to the Matrimonial Property Act, a matrimonial asset is any property acquired by either or both spouses before or during their marriage.
Identifying Whether an Inheritance is a Personal Asset or a Marital Assetĭividing family assets during a divorce can lead to a lot of tension and stress, especially if the divorce is contentious. Those who inherited money or assets may be at risk of losing a portion of it to their ex-spouse. Depending on how the inheritance was used during the marriage, couples may disagree on how the asset should be divided during the divorce. That’s a good chunk of money that can go towards renovating the marital home or paying off debts. The average Canadian receives just under $100,000 from inheritances. Family Lawyer, Family Property November 27, 2017
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