Divorce and Inheritance in Georgia: Do You Have to Share?

No matter how hard you worked and your spouse did not, or what you contributed and they failed to do, Georgia follows equitable distribution in the division of assets in a divorce. Equitable is not the same as equal, and that plays a different role in the decisions surrounding all marital property.

Estate planning also plays a role here – divorce can affect how inheritances, wills, and beneficiary designations are structured. Without proper estate planning, an inheritance you intended for children or other family members could be jeopardized in divorce.

If you have questions about divorce and inheritance, you may be unsure if your spouse is entitled to your inherited assets. There are limits to equitable distribution in Georgia, and Attorney Sharon Jackson LLC can help you navigate them.

What is Equitable Distribution in a Georgia Divorce?

Georgia follows equitable distribution of assets. As a result, all marital assets are divided fairly. This does not mean a 50/50 split, but an assignment of assets that aligns with your specific financial situation. Factors such as contributions to the marriage, age, and lifestyle are considerations in determining who gets what in a divorce.

Asset division in Georgia divorce aims to make it equal for both parties to start over financially. This can include various personalized agreements that fit your objectives. A comprehensive estate plan, including trusts or updated wills, can help safeguard inherited assets before or after divorce, ensuring they remain with the intended beneficiaries

Marital vs Separate Property

When it comes to Georgia divorce inheritance laws,  inherited property is generally not marital property. It is separate property. That is an important distinction with separate vs marital property in Georgia, determining if the assets will be divided. As separate property, inheritance is typically maintained by the person who received it.

There are exceptions to this. Commingling assets is one of them. This means you have mixed inheritance funds with joint accounts shared by both spouses. If you cashed your inheritance check into your jointly owned checking account, it is commingled with other assets. At that point, it is not simple to distinguish inheritance funds from shared, marital funds.

Another example occurs when you are using inheritance for marital property. If you use your inheritance, for example, to pay off your mortgage on a loan with both of your names, the inheritance is no longer separate property.

Gifting a portion of the inheritance to your spouse can also occur. If, for any reason, you did so, such as allowing them to have a portion of the inheritance for their needs, that can also limit protections.

How Courts Decide on Asset Division

In situations where the inheritance is separate property, it remains protected and not divided by the court. Protecting inheritance in divorce depends on this.

In all other cases, the state applies the same rules it uses for any other marital property in determining how inheritance will be divided. Some of the factors a judge may consider include:

• Contributions each spouse made to the marriage
• The length of the marriage
• The financial needs of both parties individually
• Any misconduct that occurred, such as wasting marital assets

It is not just one factor that the court takes into account, but a wide range of circumstances to determine what is actually fair.

Protecting Inherited Assets Before and During Divorce

No matter when you receive them, avoid mixing your inheritance with any of your marital property assets. Once it becomes a commingled inheritance, Georgia divorce laws require it to be treated in the same way that any other marital assets are.

There are several steps to keep in mind to protect your assets:

• Keep inheritance in a separate account, always.
• Use a prenuptial agreement in Georgia to protect inheritance. If you did not do so, consider access to a postnuptial agreement. Both can safeguard inherited property under the law.
• Maintain proper documentation on inheritance to prove it is separate property.

At any time, it is beneficial to speak to a divorce lawyer in Lawrenceville, GA, who can help you navigate your rights and create a plan that effectively protects your assets.

Common Mistakes That Put Inheritance at Risk

Do not make the following mistakes when receiving an inheritance, even if you believe that your marriage will never fail.

• Do not deposit inherited money into any jointly owned account. Open a separate account with just the spouse’s name receiving the inheritance on it.
• Do not pay for marital expenses using those funds. If you can pay for the costs out of a joint bank account, do so. Avoid any situation in which you are using the inheritance for marital asset obligations.
• Another frequent mistake is failing to update your estate planning documents after divorce. Outdated wills, trusts, or retirement account beneficiaries can cause your ex-spouse to inherit against your wishes.

You also do not want to wait to seek help. If you are considering divorce, or you know you are receiving an inheritance at some time in the future, work with a family law attorney in Gwinnett County now to establish boundaries and ensure you have the right limitations in place to protect those funds.

Seek Experienced Legal Guidance In Gwinnett County

The sooner you seek legal guidance, the better. By working with an experienced Georgia divorce attorney familiar with divorce and inheritance in the state, you will have a clear understanding of your rights and financial obligations.

At Attorney Sharon Jackson LLC, we help you learn your options and protect your financial future. If you are considering divorce, please contact our legal team immediately to learn about your rights. Call (678) 436-3636 to schedule a consultation.

FAQs About Inheritance and Divorce

Can my spouse claim half of my inheritance in a divorce?

If you are receiving an inheritance in your name only and wish to limit your spouse’s access to it, you can do so. The law recognizes that these assets are separate as long as you keep them separate. Your spouse has no claim to them otherwise. However, you should still review your estate plan to ensure your inheritance is protected for your children, grandchildren, or other beneficiaries.

Will my inheritance be a factor in receiving alimony in my Georgia divorce?

Typically, inheritance is not considered marital property and is not subject to access to pay alimony or used in the calculation of receiving alimony. That means that, most of the time, you do not have to worry that your inheritance will work against you in receiving or paying for alimony. But inheritance can still impact your long-term estate planning, such as how future trusts are structured or how assets are divided among heirs.

Can my spouse get my inheritance after a divorce?

In most situations, no. If you are in the process of divorcing and receive an inheritance, or receive one after your divorce, it does not play any role in the divorce asset division or responsibilities going forward, as long as you keep it separate. ​​