What Can Be Used Against You in a Custody Battle in Indiana?

At Mattox & Wilson, one of the most common concerns we hear from clients going through a divorce is, “What happens to my inheritance?” It’s an important question—and one with significant financial consequences.

In Indiana, the answer isn’t as simple as “yes” or “no.” Instead, it depends on when you received the inheritance, how it’s been treated, and what steps (if any) were taken to keep it separate from other marital assets.

In this post, we’ll walk through how Indiana law views inherited assets, what causes them to become marital property, and what you can do to protect them.

Call Now to Protect What’s Rightfully Yours

If you’ve inherited property or expect to—and you’re facing a divorce—now is the time to get legal advice. The decisions you make during your marriage and divorce can directly impact whether you keep or lose those assets.

Call Mattox & Wilson today at 812-944-8005 to speak with a New Albany divorce attorney who understands the financial and emotional stakes of inheritance-related property division.

What Is the “One Pot” Rule in Indiana?

Indiana is an equitable distribution state—but unlike community property states that split everything 50/50, Indiana uses the “one pot” theory. That means:

All property—no matter when or how it was acquired—is typically initially considered marital property.

This includes:

• Property owned before the marriage
• Assets and income acquired during the marriage
• Inheritances and gifts received by one spouse
• Debts (even those in only one spouse’s name)

This “one pot” is the total pool of assets the court will consider during the division process. However, just because everything starts in the pot doesn’t mean it ends there.

Does Inheritance Automatically Become Marital Property?

Technically, yes—it starts as marital property. But the court can award it entirely to the spouse who received it if it’s fair to do so.

Under Indiana Code § 31-15-7-5, judges are required to presume that an equal division of the marital estate is just and reasonable. However, they have broad discretion to divide property unequally after considering multiple factors, such as:

• Whether the property was acquired through inheritance or gift
• Whether the property was commingled with joint marital assets
• Each spouse’s contributions to the property
• The economic circumstances of each spouse at the time of divorce

Is My Inheritance Automatically Safe If I Didn’t Share It?

Not necessarily. If the inheritance was deposited into a joint bank account, used to benefit both spouses, or titled in both names, the court may view it as marital—even if it was originally yours alone.

Factors That Can Turn Separate Inheritance into Marital Property

Inheritance becomes much harder to claim as separate if any of the following occurred:

1. Commingling with Marital Assets

If inherited funds are deposited into a joint account or used to pay joint bills, the court may treat them as marital.

Example: You inherited $40,000 and used it to renovate the home you share with your spouse. Even if the money came from your family, the improvements increased the value of a shared asset.

2. Joint Titling

Adding your spouse’s name to inherited property—such as a home or investment account—is usually interpreted as an intention to share the asset.

3. Using Inheritance for Family Expenses

Spending inheritance on joint vacations, childcare, mortgage payments, or marital debt may make it part of the divisible estate.

Can I Protect My Inheritance from Being Divided?

Possibly, but only if you take proactive steps. Here’s how:

• Keep inherited funds in a separate account solely in your name.
• Avoid using the funds for marital expenses like shared bills or home improvements.
• Document everything—from the will or trust to how and when you received and used the inheritance.
• Don’t co-title assets unless you are prepared to split them later.

Concerned about whether your inheritance is protected? Let’s talk. Call us at 812-944-8005 and we’ll review your situation and create a plan to preserve your financial future.

How Do Indiana Courts Typically Divide Inherited Property?

While inheritances are initially presumed to be part of the marital estate under the one-pot rule, judges often make exceptions when dividing assets—especially if the inheritance was clearly maintained as separate and there’s evidence the other spouse had no role in acquiring or maintaining it.

Factors courts consider include:

• Whether the property was acquired by gift or inheritance
• Each spouse’s economic circumstances
• The extent to which the other spouse benefited from or contributed to the inheritance
• Whether a prenuptial or postnuptial agreement exists
• The tax consequences of dividing or awarding the asset

What About Inheritance Received Before Marriage?

Even property inherited before marriage is placed into the marital pot during divorce.

However, the court can decide to “set aside” that property to the spouse who originally inherited it, especially if it remained separate and wasn’t used for marital benefit.

What If the Court Gets It Wrong? Can I Appeal?

Yes. If the court misapplies the law or fails to consider relevant evidence—such as documents showing that your inheritance was separate—you may be able to appeal the property division.

However, courts in Indiana have broad discretion when it comes to valuing and dividing marital property. An appellate court is unlikely to overturn a decision unless the family court clearly violated the law or failed to follow the rules of equitable distribution.

If you believe your property was unfairly divided, talk to our experienced property division appeal lawyers about your appeal rights. We’re here to help.

Why Inheritance Cases Require a Strategic Legal Approach

If you’re navigating a divorce that involves inherited assets, don’t assume the outcome will be obvious. Even well-intentioned decisions—like using inheritance to support your family—can complicate your financial picture in court.

At Mattox & Wilson, we’ve spent decades helping individuals throughout New Albany and Southern Indiana protect the assets that matter most, from family land to gifted cash and inherited homes. We know the law, we know the courts, and we know how to make your case.

Talk to a New Albany Divorce Attorney About Your Inheritance

Whether you’re filing for divorce or just considering your options, the way you handle your inheritance matters. Don’t make decisions that could cost you down the line.

Call Mattox & Wilson at 812-944-8005 to schedule a private consultation with a divorce attorney who can help you protect your rights, your property, and your peace of mind.