Divorce can be messy, and many wonder if an ex-spouse can claim a future inheritance. Generally, in Tennessee, an inheritance remains separate property and isn’t split in divorce. However, if inherited funds are mixed with marital assets, there could be debates about whether the ex-spouse has a legal right to part of it.

An inheritance is generally not considered shared marital property, but courts may consider inheritance funds in asset division. Johnson, Murrell & Associates provides inheritance management in dispute resolution.

How Tennessee Divides Marital Assets

Navigating the division of marital assets during a divorce can feel overwhelming, but understanding the process empowers you to make informed decisions for your future. The state of Tennessee operates under an equitable distribution principle. This means that marital property is divided fairly unless there’s a prenuptial agreement stating otherwise.

Two key categories of property are considered: marital and separate. Marital assets encompass all property acquired during the marriage until the divorce is finalized. On the other hand, separate property includes assets retained by each individual after the divorce is finalized. 

This includes property such as anything owned before the marriage or inheritances. Understanding these distinctions provides clarity on which assets are subject to division and what remains under your ownership. This gives you the ability to advocate for your interests during the divorce proceedings.

Is Inheritance Shared Marital Property?

In Tennessee, an inheritance is legally classified as separate property, regardless of when it was acquired in relation to the marriage—whether before, during, or after. This designation means that the inheritance is not subject to division between spouses during divorce proceedings, as it solely belongs to the individual who received it.

However, while inheritances retain their separate status, courts do factor them into the overall division of marital assets. For instance, if one spouse inherits a substantial sum, the court may adjust the division of other marital property to ensure fairness. In practical terms, this adjustment could mean that the inheriting spouse receives a smaller portion of the remaining marital assets.

Understanding this nuance is essential as it illustrates how inheritances can indirectly impact the distribution of marital property in divorce settlements. By being aware of these considerations, individuals can approach the divorce process with clarity and advocate for their rights effectively, ensuring a fair outcome for both parties involved.

How Marriage Impacts Asset Classification

Actions taken with inheritance money during marriage can change its classification from separate to marital property in Tennessee. For example, if Jane received a $100k inheritance and deposited it into a bank account she shared with her husband, John, that action could indicate to the court that Jane intended for her husband to share the inheritance. If Jane and John both contribute to the account over many years, this is called a co-mingling of marital assets.

Co-mingling funds demonstrate an intention to treat the inheritance as marital property, impacting how assets are divided in the event of a separation. The result would be that the money is no longer considered separate property and may be subject to division during a divorce. In other words, Jane will have a hard time convincing the court that the $100k from years ago still belongs to her in its entirety.

Another example is transmutation, which can occur via a postnuptial agreement or other means. Like co-mingling, it reflects a clear intention to alter the property’s nature. For example, if Jane and John jointly title an inherited asset such as a house in both their names, the inheritance transforms from individual to shared marital property. This shift indicates the intent to treat the inheritance as communal, impacting how assets are divided during a divorce. 

What If the Divorce Is Already Final?

An inheritance continues to remain separate property in Tennessee, meaning that your ex-spouse doesn’t receive any part of it. If you were to make a will and then get divorced, the law automatically cancels any provisions that leave property to the ex-spouse. This is unless the will specifically says otherwise.

This means that any plans to give property or special powers to the ex-spouse are void and invalid. The ex-spouse is treated as if they had passed away before you ever made the will. However, this rule doesn’t apply if you and your spouse are only legally separated. In this case, the inheritance provisions stay in place until a full divorce is completed.

Remarrying your former spouse has an effect on the situation. The canceled provisions are reinstated if this were to occur. A review, adjustment, or both of child support may be necessary if either party has a significant change in their income due to an inheritance.

How a Probate Attorney Can Help

In some cases, an ex-spouse may try to make a claim on an inheritance that you receive. A probate lawyer can help you by: 

• Ensuring your inheritance is properly documented and legally protected 
• Contesting any claims your ex-spouse might make 
• Navigating probate court procedures to safeguard your assets 

At Johnson, Murrell & Associates, we ensure the probate process goes smoothly, guiding you through each step to avoid common pitfalls and legal complications. 

Well-versed in Tennessee law, the legal team at Johnson, Murrell & Associates understands the specific statutes and regulations that apply to inheritance issues involving ex-spouses. We can effectively address any claims or disputes from an ex-spouse regarding the inheritance. 

Understanding the distinction between marital and separate assets is important, especially when considering inheritances. While separate, courts may factor inheritances into asset division. Our team offers expertise in managing inheritances during dispute resolution.

At Johnson, Murrell, & Associates, we understand that handling a loved one’s estate and bills after their passing is an emotional, stressful experience. Our job is to make your life easier, which means guiding you through the process so you understand what’s to come. To schedule a consultation, call us at 865-453-1091 or schedule an appointment.