PACS 61.66. Dk, 64.75.+g, 71.20.Nr In this work, ab initio total energy electronic structure calculations are combined with Monte Carlo simulations to study microscopically the indium separated phases taking place in Al x Ga y In 1-x-y N quaternary alloys. The presence of aluminum in the InGaN alloy is shown to enhance the phase separation process, compared to the InGaN ternary alloy with the same In compositions. We also observe that even in the stable region of the quaternay alloy there are composition fluctuations towards InGaN-and AlGaN-like alloys formation. From our findings the origin of the emissions which have been observed from AlGaInN quaternary is discussed.