How are inheritances handled in a Connecticut divorce?
Connecticut is an “equitable distribution” state. Actually, to be more precise, Connecticut is an “all property equitable distribution” state. This means that all property of both spouses, regardless of when the property was acquired or how the property was acquired, may be distributed by the divorce court.
Accordingly, inheritances are considered marital property subject to distribution as part of a divorce. However, there is a caveat. The court lacks authority to divide potential future inheritances that are too speculative in nature. The rationale – there are no assurances that an inheritance will ultimately be received. For example, a beneficiary could be “written out” of a subsequent will. In the case of a trust, the spouse may have an unvested interest and would only acquire a “vested” interest if certain contingencies were met.
Here is a quick illustration. In a recent Connecticut divorce case, the Husband expected to inherit a large portion of his late father’s estate. However, at the time of divorce, the exact amount had not yet been determined by the Probate Court. Since the Husband had a vested interest, (he was named in the will and the contingency of his father dying had been satisfied) the divorce court awarded the Wife $100,000 of the inheritance provided that the Husband received at least $250,000 from the Probate Court.
How the inheritance is characterized is the key.