A beach house passed down from a parent or another relative may become an important part of a family’s life. Although inherited property is generally considered separate property in a Florida divorce, what spouses do with the home during their marriage can affect how its value is treated. Using marital funds for the property or changing its ownership may create a marital interest.
Defining separate property in Florida
Florida generally treats property inherited by one spouse as a nonmarital asset. This means a spouse who inherits a beach house may keep the property after a divorce rather than divide it with the other spouse.
However, the home’s status is not always that simple. How the spouses pay for, improve or manage the property during the marriage can create a marital interest in some of its value. Keeping records showing where money used for the property came from can therefore become important during property division.
When marital funds affect an inherited home
An inherited beach house can have both marital and nonmarital components. For example, marital funds might be used to pay down the home’s mortgage or make improvements that increase its value. Under Florida law, an increase in the value of nonmarital property resulting from marital funds or either spouse’s efforts may be treated as marital property.
This does not necessarily mean the other spouse receives ownership of the house itself. Instead, the court may determine that part of the home’s value is marital and subject to equitable distribution. Adding the other spouse’s name to the deed can raise additional questions about whether the property, or an interest in it, became marital.
Protecting an inherited property
A spouse who wants to preserve an inherited beach house as a nonmarital asset should keep careful records showing the property’s ownership and how its expenses were paid. Keeping separate funds separate and documenting payments, improvements and changes in value can also help establish which portions of the property remain nonmarital.
Property division can become complicated when marital and nonmarital interests exist in the same home, particularly after years of mortgage payments or improvements. A Florida family law attorney can review deeds, financial records and other evidence to determine how the property may be classified and help a spouse protect their interests during divorce.