What Happens to My Inheritance in Tennessee Divorce?

You are the favorite nephew of your beloved aunt Thelma, who left you a nice inheritance when she passed away a few months ago. Now you have been served with divorce papers quite out of the blue and you are wondering what happens next. You and your soon-to-be-ex-wife were married when you received the sizable inheritance, but Thelma only named you in her will, not your wife. Is it possible for you to keep this money so that you can finally start that business that your wife would never agree to now that you will soon be free? Or will you have to split it with her as part of the division of assets?

Marital property or separate property? Is depends

In Tennessee, an inheritance is considered to be separate property whether it was received before or during the marriage. What can change an inheritance from separate to marital property is what the spouse does with the money during the marriage. (See Tenn. Code Ann. § 36-4-121)

• For example: You received a healthy inheritance which you deposited into a savings account that is owned by you and your spouse. Your intention was to save that money and use it to buy a summer house on the lake. Years go by and each of you contributes to that savings account, but you never end up buying that summer cabin. Since you deposited the inheritance check into an account owned by both of you, and both added additional money to that balance over the years, the inheritance has now become co-mingled with marital assets, so it can no longer be considered to be separate property.
• Another example: Aunt Thelma’s attorney calls you to come to his office to receive the inheritance check. After work, you pick up the check, take it to the bank and open a new savings account in your name only where you deposit the check. Years pass and the balance grows, but you are the only one who has access to that account and those funds are never comingled with any of your other joint accounts, so it remains separate property.

Of course, these are two overly-simplified examples of what might happen with an inheritance when you are contemplating divorce. Your best option is to schedule a consultation with a Franklin divorce attorney to discuss the details of your case.

Are you considering divorce? Talk with an experienced divorce attorney who will answer your questions and inform you of the legal options available to you given the circumstances of your specific case. You are welcome to contact the Law Offices of Adrian H. Altshuler & Associates today.