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Divorce and Inheritance

Publish Date: 09/13/2016

When a couple is going through a divorce, one issue they must work out is equitable distribution - how the parties' assets will be divided. The first step in equitable distribution is to determine which assets are marital and which are separate. This is important because, in Georgia and nearly everywhere else, "the separate property of each spouse shall remain the separate property of that spouse." O.C.G.A. 19-3-9. Separate property is taken out of the marital pot at the outset, and is not divided according to equitable distribution.

The issue of separate property is in the celebrity divorce headlines as Frances Bean Cobain, daughter of Courtney Love and the late Kurt Cobain, recently filed for divorce from her husband of less than two years. Frances Bean Cobain Files for Divorce From Isaiah Silva After Nearly 2 Years of Marriage, by Bruna Nessif, eonline.com, March 23, 2016. Frances inherited nearly $450 million from her father's estate and, in her divorce filing, has requested "that all gifts, inheritance, bequests and all other pre-marital assets…be confirmed and/or awarded to her as her separate property." Clearly, she does not want her soon to be ex-husband to receive any portion of this substantial inheritance.

While the news outlets are trying to make this out to be a big deal, it really isn't. In fact, it is well-established law in Georgia that "a property interest that is brought into the marriage by a spouse is not subject to equitable division." Bailey v. Bailey, 250 Ga. 15 (1982). Moreover, an inheritance is considered separate property, even if it was acquired during the marriage. Id. In this case, Frances inherited the large sum from her father's estate long before she entered into the marriage at issue. Though this case is in California, that state has similar separate property laws. Thus, there is no question that the entirety of this inheritance will remain the property of Frances alone.

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