Inheritance damaged and repaired


#1

My question deals with an item that was inherited and became damaged. we used insurance money to pay for repairs. now it looks like we are headed for a divorce, so is the item still inherited or since comingled money paid to have the item repaired, is the item joint property for ED?


#2

The courts use a “source of funds” rule to determine whether and to what extent an asset is part of the marital estate. To determine the extent of the marital nature of the asset would require an analysis of the value of the property before the damage, the current value, and the marital funds used to pay for the repairs.