What rights does a spouse have to inherited property?
My uncle lives in IN. He inherited property located in KY from his parents and received money from the sell of timber from the inherited property. He placed the money into a savings account. He is now going through a divorce. Is his spouse entitled to half of the property and monies he received from the sell of timber from his inherited property?
In many states, inherited property begins as the separate property of the person who inherited it. If then he makes money from the inherited property or commingles the monies or assets for use as part of the marital estate or as a gift to the spouse, then it can transition into a marital asset (that portion of the inheritance that is commingled).
This is going to be a bone of contention most likely between them if at any point she received something as a result of that inheritance. Monies made during a marriage (unless of course it is from a separate estate that is not commingled) are always considered part of the marital estate and thus a marital asset to which the other spouse is entitled. There are always exceptions but keep in mind, if at any point in time these two were separated prior to filing for divorce, monies made or interest earned from the savings account that was not commingled would be a separate asset.