What does equitable distribution mean in a divorce?
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What does equitable distribution mean in a divorce?
Equitable distribution is a legal theory whereby marital property is distributed equitably in a divorce proceeding. Property assets are classified as either separate property or marital property. Most US states follow the equitable distribution theory.
Does inheritance money get split in a divorce?
Generally, inheritances are not subject to equitable distribution because, by law, inheritances are not considered marital property. Instead, inheritances are treated as separate property belonging to the person who received the inheritance, and therefore may not be divided between the parties in a divorce.
Is inheritance included in adjusted gross income?
No, an inheritance is not an addition to the MAGI for tax purposes. Your MAGI is used as a basis for determining whether you qualify for certain tax deductions. To calculate your modified adjusted gross income, take your AGI and add back certain deductions.
