The division of the marital estate is a major issue in any divorce. Most of the US utilizes equitable division— where the court may divide marital assets fairly, but not necessarily equally. The specific split differs on a case-by-case basis for couples’ specific circumstances.
Connecticut also utilizes the equitable distribution system, but with a very notable difference that sets it apart from many other states. Many pieces of general advice on marital asset distribution may not apply to Connecticut divorces. If you and your spouse share significant finances, knowledge can help you secure assets you care about.
What is “all-property”?
Connecticut is uniquely an all-property state, which means judges can factor in all property owned by both parties in the asset division. The state does not exempt gifts and personal items from asset division. It does not matter whose name is on the deed or when you acquired it.
Most states make a distinction between marital assets and separate assets (what you owned before the marriage or inherited separately). But according to Connecticut law, all property is technically eligible for distribution. It is up to the discretion of the court to decide if awarding your inheritance to you is equitable.
How do judges decide inheritance division?
Equitable distribution looks at fairness rather than maintaining strict 50/50 splits of the marital estate. Several factors can weigh into the decision for the distribution. Here are some specific key details that can influence whether the court will award you your inheritance.
- Asset commingling: Did you deposit the inheritance into a joint account or use it to pay off joint financial obligations? If your inheritance funds have “commingled” with marital assets or debts, the court is likely to choose to divide it.
- Length of the marriage: Even if you place your inheritance in a separate account, a court may choose to include it in asset division. Division is more likely in longer marriages where the court may view inheritances as an asset in the marital estate.
- Functional use: If you used your inheritance funds to pay family necessities or to support children’s needs, there is a higher chance that a judge may split your inheritance. If you never used the funds and kept them in a separate account then there is a better chance you may keep it.
- Value relative to the estate: Depending on the circumstances, if your inheritance is comparatively sizable compared to the total value of the marital estate, the court may scrutinize how to treat it to ensure a fair overall outcome.
- Other equitable factors: Just like in other states that utilize equitable distribution, the court considers factors such as age, earning capacity, health and financial situation.
If you want to keep your inheritance in a Connecticut divorce, being careful about funds is the first defensive step. Aside from keeping separate accounts for inheritance, avoid using personal funds for joint purchases, investments and obligations. Look into signing a pre or postnuptial agreement to explicitly protect your assets.
What can ease the transition?
Proper representation can help you move forward with your divorce with the best legal strategies. Consider reaching out to a legal professional early in the process so you can evaluate the best pathways.