Protecting Inherited Wealth and Family Assets During Divorce in Florida
Divorce can be a highly emotional and financially uncertain time, especially when significant family wealth or inherited property is at stake. If you’ve received an inheritance or hold family assets passed down through generations, you may be wondering what will happen to that property when your marriage ends. Can your spouse claim a share? Will it be divided under Florida’s equitable distribution laws?
In Florida, the answer is nuanced. While inherited assets are generally considered non-marital property, there are several ways they can become entangled in the marital estate, sometimes unintentionally. Understanding the rules that govern inheritance in divorce and taking steps to protect what you’ve been given can make all the difference in preserving your financial future and your family’s legacy.
How Florida Courts Categorize Property in Divorce
Florida follows the principle of equitable distribution, meaning that marital property is divided fairly, but not necessarily equally, between the spouses. Before any division takes place, the court must determine which assets are marital and which are non-marital.
Marital assets typically include anything acquired by either spouse during the marriage, such as income, savings, real estate, retirement accounts, and debts. Non-marital assets, on the other hand, are usually those that were owned by one spouse before the marriage, inherited by one spouse individually, or received as a gift from someone other than the other spouse.
This distinction is crucial because non-marital property is not subject to division during divorce. That means if you inherited money, land, a family business interest, or valuable heirlooms, those assets are likely yours to keep, as long as they’ve been kept separate and not comingled with marital funds.
How Inherited Assets Can Lose Their Non-Marital Status
While the law offers protection for individually inherited wealth, those protections can be lost if the inheritance is commingled with marital assets or used for marital purposes. This often happens unintentionally. For example:
- You deposit inherited funds into a joint bank account.
- You use inherited money to renovate the marital home, which is jointly owned.
- You transfer title of inherited property into both spouses’ names.
- You use inheritance proceeds to pay down marital debt or make a large joint purchase.
These actions can turn what was once protected non-marital property into a marital asset, which is then subject to division during divorce. Once that happens, it may be difficult, though not impossible, to prove that the asset was initially separate and should be returned to you in full.
Preserving the Non-Marital Character of Inherited Wealth
The best way to protect inherited wealth in a Florida divorce is to maintain its status as separate property from the start. Here are some steps that can help:
- Keep inherited funds in a separate account.
Do not mix inherited money with joint funds. Keep it in a separate bank or investment account titled in your name only. Avoid making deposits or withdrawals that involve marital income. - Do not add your spouse to the title of inherited property.
If you inherit a home or other real estate, keep the title in your name only. Adding your spouse’s name could convert the asset into marital property, even if they made no financial contribution to its value. - Document everything.
Maintain clear records that show the source of the inheritance, the date it was received, and how it has been managed over time. This will be invaluable if you ever need to prove that the property is non-marital. - Use a prenuptial or postnuptial agreement.
A legally valid marital agreement can explicitly state that certain assets—such as inheritances, family businesses, or future gifts—will remain separate property regardless of how they are used during the marriage. This is especially useful in high-net-worth marriages or when family pressure to protect generational wealth is a concern. - Be cautious with inherited businesses or family partnerships.
If you’ve inherited an interest in a family business, consult with an attorney early to determine how to shield that interest from marital claims. You may need to separate business and personal finances carefully and avoid giving your spouse ownership or decision-making power.
Reclaiming Inherited Property During Divorce
If you’re already in the middle of a divorce and are concerned that your inheritance has been compromised, all is not lost. Florida courts may allow you to trace the source of funds to demonstrate that an asset was originally non-marital.
Forensic accountants are often brought in during complex divorce cases to help identify the origin of commingled funds and assign value to non-marital portions of marital assets. For example, if you used part of your inheritance to buy the marital home, but can show that the contribution was substantial and identifiable, you may be entitled to a credit or full reimbursement during property division.
It’s important to work with an attorney who understands these issues and can present a compelling case to the court. In high-conflict or high-asset divorces, failing to act proactively can mean walking away with far less than you deserve—or losing part of your family’s legacy.
Contact Taryn G. Sinatra, P.A.
If you’re going through a divorce and are concerned about protecting inherited assets or family wealth, Taryn G. Sinatra, P.A. is here to help. Our experienced Boynton Beach family law team understands the complexity of property division and is committed to safeguarding what matters most to you.
Whether you’re planning ahead with a marital agreement or navigating a contentious divorce, we’ll work with you to preserve your financial independence and your family’s legacy. Contact us today to schedule a consultation and take the first step toward protecting your future.
Sources:
leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0000-0099/0061/Sections/0061.075.html
floridabar.org/the-florida-bar-journal/the-commingling-of-nonmarital-and-marital-funds-untangling-the-changing-character-of-assets-in-equitable-distribution
