Usually inheritance is separate property regardless of whether the recipient receives it before the marriage or during the marriage. However, as a result of transmutation or commingling inheritance can become a divisible asset in a divorce. Here are a few examples of how that can happen.
When you inherit money and place it into a marital account, for other than temporary convenience, and then begin to put other marital money in that account, the inheritance becomes a commingled and transmitted or changed into marital property.
If you inherit a home and your spouse assists you to renovate the home by adding their own money to the project or taking part in the project, the increased value of that home as a result of the renovation can become marital property.
If you inherit a home and sell it and use the down payment to purchase a new martial home which you title in both your and your spouse’ names, then you have changed the inheritance into marital property.
If you would like advice about how a Michigan or New York court may divide your assets in a divorce proceeding, contact Diana Mohyi Attorney at Law for a consultation.