Legal Question in Family Law in Oregon

Re: Inherited money......

YOUR QUESTION:

A spouse inherits 600K, does that money become community property and shared should a divorce occur or does 100% of the money stay with the inheritor?

----->ANSWER: Oregon is an "equitable distribution" state, not a community property state, so the answer to your question is not as clear-cut as might otherwise be the case.

Oregon law provides for a "rebuttable presumption" that both spouses have contributed equally to the acquisition of property [including an inheritance] during the marriage, whether such property is jointly or separately held. However, the fact that the property was acquired by one of the spouses via inheritance is usually, by itself, factually sufficient to rebut the presumption of equal contribution that would otherwise apply . HOWEVER, that does not automatically or necessarily mean that the inheritance will not be taken into consideration by the judge in arriving at an over-all "just and proper" division of the parties' assets. Under well-established Oregon caselaw precedents, the inherited property of one spouse may be divided (or otherwise taken into consideration), in whole or in part, by the court in order to attain the broader �social goals� of the divorce process and achieve an over-all "just and proper" division of the parties' assets and properties. Each case must necessarily be decided on its own particular facts and circumstances.

YOUR QUESTION:

If a portion of these inherited moneys are used to finance or remodel a home owned by both parties, how does the law look at the inherited funds should divorce occur?

------>ANSWER: Inherited money that has been used to finance or remodel a home owned by both parties will generally be deemed as having been �commingled with common financial affairs of the family� and will thereby lose its characterization as separately held property.

YOUR QUESTION:

If the inherited moneys are used for investment purposes and are used to purchase, for example an investment piece of property owned by both parties, how does the law look at the inherited funds should divorce occur?

------>ANSWER: If the money inherited by one spouse is not kept segregated and apart from the common financial affairs of the family, it will lose its characterization as separately held property. Putting separately held money or property into joint names (such as using the money to invest in assets or property with title taken in both names) evidences the inheriting party�s intent to no longer treat the inherited property (to the extent commingled) as a separate asset. Then, when divorce occurs, the fact that the jointly held investment asset was acquired with funds that were originally inherited by one spouse will be of no significance. (If you want to keep it for yourself, don�t put it into joint names.)

LDG