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Inherited property and divorce


When couples divorce in Nevada, an agreement must be reached about the division of marital property. If one spouse has funds or physical property that they inherited, these assets are considered separate property and are not subject to division. For an inheritance to be considered separate property, it must have been left to just one spouse with no mention of the other spouse.

Although inherited assets are not usually divided in a divorce, there are some circumstances where they might be subject to division. Inherited money or property that was comingled with marital assets will often lose its distinction as separate property. Some examples of comingling inheritance are depositing inherited funds into a joint bank account or using inherited funds to make a purchase that benefits both spouses.

If a spouse entered into a marriage with inherited assets they had already acquired, the same rules apply about comingling. An inheritance that was left apart from marital assets throughout the length of the marriage will be considered separate property in the event of divorce. An inheritance that was comingled will be considered marital property.

There are some cases where a court may determine that inherited assets that were comingled have not lost their distinction as separate property. This may occur if a spouse can show sufficient proof that funds that were comingled were never actually intended to be shared with the other spouse. Establishing that a comingled inheritance is separate property may be difficult to prove, and a spouse may have a better chance of asserting this claim with legal representation.

Source: Findlaw, "Inheritance and Divorce", December 01, 2014

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