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Inherited Real Estate and FL Divorce

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Dividing assets, such as real estate, when divorcing can be stressful. There are a range of properties that may be assessed, and in cases where one or both spouses own inherited real estate, additional complexities may arise.

To explore your options, talk to a skilled Orlando family lawyer about how inherited real estate is treated when Florida couples split up. The property’s classification and if it was enhanced with marital funds or is tied to a family business could be part of the process.

Classification, Division, and Marital Funds

In Florida, marital assets are subject to equitable distribution in divorce proceedings. This means assets gathered during a union are divided fairly but not necessarily equally between spouses. But it’s important to recognize that inherited assets, including inherited properties, are generally considered separate property, which is not subject to the same division rules. The exception would be if the assets have been commingled with marital assets or otherwise transformed into marital property.

A rise in value could also be part of the assessment process. This is because while inherited real estate may be retained by the inheriting spouse, an increase in value could be subject to equitable distribution. For example, if the property’s value has increased during the marriage due to contributions from both spouses and with the use of marital funds, the increase could be an asset of the union.

Complexities can also arise when inherited real estate is maintained or refinanced using marital funds. In such cases, the property may be considered partially marital and its division may require careful assessment of contributions made by both spouses. Factors such as the source and extent of marital contributions, as well as any agreements or intentions regarding the property, may influence its classification and division in divorce.

Additionally, in some instances inherited real estate may be tied to a spouse’s business interests, such as rental properties owned by a business entity. In these cases, the property’s classification and division may depend on whether it is considered a business asset or personal asset. If the property is integral to the operation of the business, its valuation and division may require the expertise of forensic accountants or business valuation experts.

Professionals Provide Careful Analysis

Navigating the division of inherited real estate in divorce requires careful analysis, doing so is key to understanding the potential impact on the overall settlement. Consult with an Orlando family lawyer to access invaluable guidance, ensuring your rights and interests are safeguarded. With the assistance of a knowledgeable attorney, you can achieve a favorable outcome to preserve your financial security and future well-being.

Have you been talking to your spouse about how properties will be distributed when the two of you separate? If one or more of your properties was inherited, connect with the  family law attorneys at Donna Hung Law Group. Whether it is retained as separate property, partially marital, or tied to business interests, inherited real estate warrants a thorough evaluation. Book your confidential consultation today, call 407-999-0099 or contact us online.