Can inherited property end up as community property in Washington?

Can inherited property end up as community property in Washington?

Washington state typically considers inherited property as separate property. If one spouse inherits a home, it is not automatically deemed community property simply because it serves as the family home. And if nothing got more complex than that, that would be the final word.

The ways that family, love, marriage and relationships evolve and change is never simple. As you and your partner built your life together, you may have commingled assets without realizing it. Still, regardless of your intentions, you may have taken steps that would put a piece of separate property into the joint marital estate.

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How is the house characterized?

Characterization, in this context, means “how is the house used.” If you used your inheritance as the family home, that would typically mean everyone in your family – including your spouse – used the home as if it were their own. That behavior can be considered by courts in Washington during a divorce proceeding.

You may also see such instances of characterization in certain prenuptial agreement clauses or even complex title actions. In fact, there are many ways that your inherited home can become part of the marital estate, including:

• If your spouse contributes to the mortgage
• If your spouse foots the bill for renovations
• If you and your spouse use the home’s equity for a small business
• If your spouse creates a business out of the home
• If your spouse is largely responsible for maintenance

In some of these complex cases, the court may order the sale of the family home, with the proceeds being divided between the spouses. If the inheriting spouse wishes to retain the property, they may need to “buy out” the other’s interest or offset it with other assets during the property division.

Consider how the future impacts your decision.

It’s important to note that divorce proceedings and property division are highly fact-specific. But you can’t change the past or how you and your spouse used the home; you can make sure it’s there for the future. If the house is important to you as a family home, you and your attorney can take steps to keep it within the family.