Going through a divorce is stressful enough without worrying about whether you will lose your inheritance. If you have received money or property from a loved one, you probably want to know how Maryland courts will treat these assets during your divorce proceedings.
Understanding marital versus non-marital property
Maryland law makes an important distinction between marital and non-marital property. Marital property encompasses assets obtained during the marriage. Non-marital property comprises assets you possessed before marriage or received as a gift or inheritance during the marriage.
Generally speaking, inheritances are considered non-marital property in Maryland. This means that if you inherited money or assets from a family member, those assets would typically remain yours alone after the divorce. However, the reality is not always this straightforward.
When inheritances can become marital property
The critical factor is how you handled your inheritance during the marriage. If you kept your inherited assets separate from your spouse and your marital finances, you might have a stronger argument that they should remain yours. However, if you commingled your inheritance with marital assets, you might face complications.
Commingling occurs when you mix inherited funds with marital money. For example, if you deposited your inheritance into a joint bank account, you may have transformed your non-marital property into marital property. The same applies if you used inherited funds to purchase a home titled in both names. Similarly, if you used inherited funds to pay off marital debt, you could lose your claim to those funds. The same risk applies when you use inheritance money to make improvements to the marital home.
Protecting your inheritance
If you want to keep your inheritance separate, consider maintaining it in an account under your name only. You might also want to avoid using inherited funds for joint expenses or marital purchases. Keeping clear records and documentation of your inheritance may help demonstrate that these assets remained separate throughout your marriage.
You might want to take time to understand your rights and explore the options available in your specific situation. Every divorce case is unique, and the treatment of your inheritance will depend on the specific facts and circumstances surrounding how you managed those assets during your marriage.
