I inherited some money. I heard that this does not have to be divided and I get to keep it. Is that right?
December 2, 2016
According to the Family Law Act, if the money was inherited prior to a party’s date of marriage, then that party is permitted to deduct the value of that inheritance on the date of marriage, so long as the inheritance money was not used to purchase the Matrimonial Home or pay down its mortgage.
If the inheritance money was received by a party during his or her marriage to another, than that party is permitted to exclude the value of that inheritance on the valuation date. There are several stipulations, however, in that the inheritance must have been received from a third party after the date of marriage, the inheritance could not have been used to purchase the Matrimonial Home or pay down its mortgage, and the inheritance must have been in existence on the date the parties separated. In other words, the inheritance must be traceable. It is also not a good idea to place the inheritance money in a joint account, as some Case Law suggests that the funds may be co-mingled, and a court may not be able to determine what portion of the inheritance should be excluded, if any.