Your parents left you money or property to provide financial security. But as you face divorce, you may worry that your spouse could receive part of that inheritance. In New Hampshire, receiving an inheritance in your name alone does not automatically protect it from division.
Is your inheritance part of the marital estate?
New Hampshire follows an “all property” approach to divorce. Under state law, the marital estate includes assets belonging to either spouse, including inheritances. Courts presume an equal division is fair, but judges may consider the value of inherited property when deciding whether a different division is appropriate.
What might affect how the court divides it?
When deciding how to divide your inheritance, the court may consider several factors:
- The length of your marriage
- Each spouse’s contributions to the property’s increase or decrease in value
- Each spouse’s income, financial needs and future earning opportunities
For example, if your spouse paid for renovations to a rental property you inherited, the court may consider that investment when dividing your assets.
What records can help explain your inheritance?
A will, estate distribution statement and bank records may show what you received and when. Mixing inherited funds with marital money is called commingling. It can make the funds harder to trace, although keeping them separate does not guarantee that you will retain them after divorce.
Those records can help establish the inheritance’s original value and how you used it during your marriage.
How can you assess what may happen to your inheritance?
Knowing how your inheritance fits into the marital estate can help you better understand your financial position during divorce. A New Hampshire divorce attorney can examine how you received and managed the assets, identify relevant property division factors and explain what those details may mean for your case.
