This article discusses whether and when inheritance counts as income and strategies for protecting assets from child support. With careful planning, you can safeguard your financial future.
Does Inheritance Count as Income for Child Support in Florida?
The first step in protecting an inheritance from child support obligations is understanding how Florida law treats inherited assets. Florida law primarily considers income from wages, self-employment, and specific benefits in calculating child support.
A lump sum inheritance, however, is typically classified as non-recurring income under Florida law. This means that a one-time inheritance is generally not included when calculating child support obligations. However, if the inherited funds are invested or generate regular income (e.g., interest, dividends, or rental income), that income may be factored into child support calculations.
So if you’re wondering if inheritance counts as income for child support, under Florida law, the answer depends on what the inheritance is, how the inheritance is used, and whether it generates recurring income. These details are crucial when strategically planning for your financial future.
How Is Inheritance Treated in Property Division?
In Florida, inheritance is considered non-marital property, meaning it is generally excluded from the pool of assets subject to being divided in divorce. However, this protection is not automatic and can be lost if the inheritance is commingled with marital property.
Commingling occurs when inherited funds are mixed with marital assets in ways that make them indistinguishable. For example:
- Depositing inheritance into a joint bank account. If inherited funds are placed into an account shared with your spouse, they may be considered marital property.
- Using inheritance to purchase jointly titled property. If you use inherited money to buy a home or other asset titled in both spouses’ names, the inheritance may lose its separate status.
- Paying marital debts with inherited funds. Applying your inheritance to cover joint expenses, like a mortgage or household bills, can result in the inheritance being treated as marital property.
To protect your inheritance from property division during divorce, it is crucial to maintain its separate nature.
How to Protect Inheritance from Child Support Obligations or Property Division
As you’re planning for the future, there are several steps you can take to protect your inherited assets in case of divorce or a child support claim.
Establish a Trust
One of the most effective tools for protecting assets from child support obligations is a trust. A trust allows you to designate how and when money from your inheritance can be distributed, shielding it from creditors, divorce settlements, or child support claims.
- Revocable trusts. This type of trust offers flexibility, as the terms can be changed during the grantor’s lifetime.
- Irrevocable trusts. This type of trust provides stronger protection since the grantor no longer owns the assets, making them harder to access during a divorce or legal dispute.
Florida law supports using trusts as a proactive strategy for asset protection. A properly structured trust not only protects assets but also provides clarity on how those assets should be used. This can include specifying that funds be allocated for education, housing, or other essential needs, preventing misuse or unnecessary depletion. Additionally, a trust can offer long-term oversight by appointing a trustee to manage the assets, ensuring they are used responsibly and according to your wishes.
Prenuptial or Postnuptial Agreements
A prenuptial or postnuptial agreement can provide additional protection. These agreements can specify that any inheritance received during the marriage remains the separate property of the beneficiary, safeguarding it from equitable distribution in a divorce.
While Florida law generally excludes inheritances from marital property, this exclusion can be lost if the inheritance is commingled with marital assets. A well-drafted agreement can reinforce the inheritance’s separate status.
Keep Inheritance Separate from Marital Assets
Commingling is one of the most common ways inherited assets become vulnerable. If you receive an inheritance and combine it with marital funds—such as depositing it into a joint account or using it to purchase jointly titled property—it may lose its protection.
To avoid this, it’s important to:
- Maintain a separate account for inherited funds,
- Avoid using inheritance for joint expenses or investments, and
- Document the inheritance thoroughly to prove its origin.
Taking these precautions helps ensure that the inheritance remains distinct from marital assets, preserving its protection during a divorce.
Key Florida Laws to Consider
Florida has specific statutes governing inheritance, child support, and marital property. A few key points include:
- Non-marital assets. Florida law defines inheritance as a non-marital asset, provided it is kept separate.
- Income definition. Only regular and recurring income is typically included in child support calculations.
- Trusts and asset protection. Trusts are recognized under Florida law as valid mechanisms for preserving assets and ensuring they are distributed according to the grantor’s wishes.
These laws form the foundation for effective estate and asset protection planning. Consulting with an experienced attorney helps ensure your strategies align with Florida’s legal requirements.
How Beller Law, PL Can Help
At Beller Law, PL, we focus on helping families in Duval, St. Johns, Clay, and Nassau, and Putnam counties protect their inheritance through personalized, effective legal strategies. Led by experienced attorney Rebeccah Beller, our firm combines in-depth knowledge of Florida family and estate law with a hands-on approach tailored to your unique goals. Whether creating trusts, drafting marital agreements, or navigating child support laws, we are committed to securing your family’s future with practical, compassionate guidance.
Take the First Step Toward Securing Your Inheritance
Planning for the future doesn’t have to be overwhelming. Taking proactive steps ensures that your inheritance remains protected, no matter what challenges arise. Contact Beller Law, PL, today to learn more about how to protect inheritance from child support and other legal challenges.