Divorce and Inherited Property

Friday, October 10, 2014

    The rules have changed over the years.

    Inherited property, in Oregon, now, is generally not spilt equally among spouses when they divorce.

    The presumption set forth in ORS 107.105(1)(f)(D) is that property acquired by gift or inheritance, and that is separately held by that party thereafter, is not subject to the presumption of equal contribution.

    This means that inherited property is usually not split when a couple divorces.

    This was not the case earlier in Oregon, and may not be the case in certain other states.

    The presumption of equal contribution is a rebuttable presumption that both husband and wife contributed equally to the acquisition of anything acquired during marriage.  This presumption means that, even if one spouse is a homemaker, and has not earned any money during the marriage, that spouse is still credited with contributing to the acquisition of assets.  The idea is that because of the non-financial support of the homemaker, the employed spouse is better able to devote his or her efforts to his or her job, business, or the like.

    This presumption of equal contribution applies to almost everything acquired during marriage.

    The exception to this rule is, as outlined above, that assets which are received by gift, inheritance, or the like during marriage are not subject to this rebuttable presumption, and may be awarded to the spouse who received the gift or inheritance.

    If, however, the spouse who received the gift or inheritance co-mingled the gift or inheritance with the family finances, or if the parties lived their lives in expectation of relying on these assets during retirement, or if the party who received the gift or inheritance actively managed the gift or inheritance, some or all of the gift or inheritance may be transformed into assets which are subject to division in a divorce.