Are Inheritances Considered Marital Property in Illinois?

 Posted on December 16, 2024 in Property Division

Dividing property can be one of the most challenging aspects of a divorce. This is especially true when determining whether an inheritance should be considered marital property that must be divided. For many, this is a critical issue, as inheritances often hold both financial and sentimental value. 

Understanding how inheritances are treated in Illinois divorce cases and how to protect them can make a substantial difference in the outcome of your property division. An experienced Illinois family law attorney can guide you through this process and help ensure that your rights and assets are protected.

What Does Illinois Law Say About Inheritances and Marital Property?

The Illinois Marriage and Dissolution of Marriage Act (IMDMA) governs how property is classified and divided during a divorce. According to the IMDMA, inheritances received by one spouse are considered non-marital property, meaning they typically belong only to the recipient. This notion applies regardless of whether the inheritance is received before or during the marriage.

However, complications may occur if the inheritance is mixed, or "commingled," with marital assets. For instance, if an inheritance is deposited into a joint bank account or used to purchase shared property, it may lose its status as separate property. Once commingled, it is more difficult to prove that the inheritance should not be included in the marital estate.

How Can You Ensure an Inheritance Remains Separate During a Divorce?

Protecting your inheritance as non-marital property requires careful planning and documentation. Some key steps to consider include:

• Keep Inheritance Funds in a Separate Account: Deposit any inheritance money into a personal account that is not shared with your spouse, and avoid using these funds for joint expenses or purchases.

• Avoid Commingling Assets: Do not use inheritance funds to buy marital property that will be shared with your spouse.

• Document the Inheritance: Keep records that clearly show the inheritance was meant just for you, such as a copy of a will, trust documents, or communication from the estate executor.

• Consider a Prenuptial or Postnuptial Agreement: These can clarify that inheritances will remain separate property in the event of a divorce.

What Happens If an Inheritance Is Commingled?

If inheritance funds are commingled with marital assets, the court may consider them part of the marital estate, which makes them subject to equitable division. However, "equitable" does not always mean equal. To fairly divide assets, the court will consider factors like the length of the marriage, each spouse's contributions, and financial needs.

When arguing that commingled inheritance funds should still be considered non-marital, you must provide evidence tracing the funds back to the original source. This process often requires detailed financial records or even testimony from a qualified professional.

Can a Spouse Claim Part of an Inheritance During Property Division?

In most cases, if the inheritance is clearly separate property and has not been commingled, it will not be subject to division. However, disputes can still arise. A spouse may claim that the inheritance was used to benefit the marriage or meant to be shared. If you are concerned about protecting an inheritance during your divorce, it is essential to consult with a knowledgeable attorney. 

Contact a Kane County, IL Family Law Attorney

It is important to understand how inheritances are treated in Illinois divorce cases in order to protect your assets. If you are navigating a divorce and have questions about property division, contact a St. Charles, IL family law attorney at Goostree Law Group. Contact us at 630-584-4800 to schedule a free consultation and learn how we can help protect your inheritance and other important assets.