Legal Question in Family Law in Wisconsin

Re: Inheritance

The applicable statute is:

767.61(2) Property subject to division.

(a) Except as provided in par. (b), any property shown to have been acquired by either party prior to or during the course of the marriage in any of the following ways shall remain the property of that party and is not subject to a property division under this section:

1. As a gift from a person other than the other party.

2. By reason of the death of another, including, but not limited to, life insurance proceeds; payments made under a deferred employment benefit plan, as defined in s. 766.01 (4) (a), or an individual retirement account; and property acquired by right of survivorship, by a trust distribution, by bequest or inheritance or by a payable on death or a transfer on death arrangement under ch. 705.

3. With funds acquired in a manner provided in subd. 1. or 2.

(b) Paragraph (a) does not apply if the court finds that refusal to divide the property will create a hardship on the other party or on the children of the marriage. If the court makes such a finding, the court may divest the party of the property in a fair and equitable manner.

The bottom line is that property received by gift or inheritance cannot be divided unless there would be a hardship if it isn't done. This is a difficult standard to meet.

On the other hand a court can divide the marital estate unequally based on many factors, one of which is:

767.61(3)(c) Whether one of the parties has substantial assets not subject to division by the court.

So, a court could give the non-inheriting party a greater share of the marital property even if it cannot divide the inheritance.

You need to consult with your attorney about this, as there are many different factors that have to be considered.