If One Spouse Uses Inheritance to Buy a Home Titled in Both Names, Who Owns It in Divorce?

Property division can be one of the most complicated parts of a divorce—especially when separate assets, like an inheritance, are used to purchase something jointly. In Georgia, ownership isn’t just about where the money came from. When an inherited asset is used to purchase a home and both spouses are listed on the title, that property is typically treated as marital. But that’s not the end of the story.

Understanding Separate vs. Marital Property in Georgia

Georgia law distinguishes between separate property and marital property:

• Separate property generally includes assets acquired before the marriage or received individually during the marriage—such as gifts or inheritance.

• Marital property includes most assets acquired during the marriage, regardless of whose name is on the asset, if both spouses contributed to it or benefited from it.

However, when one spouse uses a separate asset like inheritance to purchase a home and adds the other spouse to the title, that action can convert the home into marital property. This process is called transmutation.

What Happens When Inheritance Funds Buy a Jointly Titled Home?

Even if the down payment or full purchase price of a home comes entirely from one spouse’s inheritance, titling the home in both names often signals an intent to treat the house as a shared marital asset. Under Georgia law, that home is likely considered marital property.

Still, Georgia follows equitable distribution, not equal distribution. That means the court will divide marital property in a way it deems fair—taking into account each spouse’s financial and non-financial contributions, as well as the source of the asset.

Real-World Example: Inheritance and Equity

In one case, a client had purchased a home during marriage using her inheritance and titled it jointly with her spouse. Although this made the home marital property, she earned significantly less than her spouse and had brought the house into the marriage using her separate funds. The court ultimately awarded her the home and more than 50% of the total marital property—demonstrating how judges can weigh fairness, intent, and contribution when deciding who gets what.

Key Considerations in Similar Cases

If you’re in a similar situation, here are some things to keep in mind:

• Title matters: Adding your spouse to the deed often converts separate property to marital property.

• Judicial discretion: Judges may consider who provided the funds, who maintained the property, and each spouse’s financial position.

• Equitable ≠ equal: You might receive more (or less) than half of the total marital estate based on fairness—not strict math.

• Legal strategy: Presenting the right evidence can significantly impact how the judge views the asset division.

Our team can help you protect your rights and present a strong case through our divorce services.

Schedule a discovery call to learn how we can support you.