Can separate property be converted?

A question we sometimes receive regarding the difference between marital property and separate property is whether separate property (such as an inheritance) can actually be considered marital property, which would be subject to division in a divorce.

Without giving legal advice, the basic answer to the question is: it could…followed by the qualification: it depends.

Generally, inheritances, like most elements of separate property, are not subject to be considered marital property. As such, it would not be divided according to state law. However, if the separate property is converted to marital property, it would be eligible to be divided.

With an inheritance as an example, it could be converted if it is deposited into a joint account that has a husband and wife as joint owners. It may also be transformed if the funds are used to purchase joint property, such as home or car that is titled in both spouses’ names.

Of course, an argument could be made that only a portion of separate property was actually converted from separate property to marital property depending on how it was used (or how much was used). This could be used to preserve the original nature of the property.

For those concerned about losing separate property (even inadvertently), it could be preserved by creating a prenuptial agreement (or a postnuptial agreement for those who are already married) that will specify what assets will remain separate property despite their use within the marriage. If you have additional questions about converting assets, an experienced family law attorney can help.

Read Our

Recent Blogs

How Can I Best Prepare for My Divorce?

For many people, a divorce is the most complex legal matter they will ever have to face, which is why if you are about…

Read More
Can My Spouse Take My Retirement In An Illinois Divorce?

The division of assets is one of the most complicated yet important steps of the divorce process. This is when a married couple's shared…

Read More
Can A Property Division Agreement Be Changed After A Divorce Is Finalized?

Divorce can be stressful because there are many different considerations that need to be made throughout the legal proceedings. Various aspects of a person's…

Read More

Contact Us Today!

  • This field is for validation purposes and should be left unchanged.