Dow Jones & Company: I inherited a $300,000 bank account. When I pay taxes on the interest, would my spouse be entitled to a share of the account if we split?
From Dow Jones & Company:
The article discusses the issue of whether interest earned on a separate inheritance account becomes joint property in the event of a divorce. It is recommended to consult a certified public accountant to determine tax liability on the interest earnings and then pay it with money that is separate from the joint marital finances. It is also suggested to create a paper trail for any withdrawals made from the inherited account and to be cautious about the handling of tax payments in commingled accounts. The article emphasizes the importance of understanding the legal implications of separate and joint assets in the event of divorce. Finally, the article advises readers to proceed with caution when discussing financial matters with their spouse and to seek professional advice early to avoid potential conflicts and financial complications in the future.
Original: I inherited a $300,000 bank account. When I pay taxes on the interest, would my spouse be entitled to a share of the account if we split?