Inheritances are deeply personal. They are not just a transfer of assets but a lasting memory and connection to loved ones who have passed away. But what happens to this cherished inheritance if you face a divorce? Is there a way to ensure that your inheritance remains protected and doesn’t become entangled in a marital dispute? Our Brandon estate planning lawyers provide some insights into this matter.
The Basic Premise: Inheritances as Separate Property
By default, inheritances are often viewed as separate property in many jurisdictions. This means that, typically, they are not divided between spouses in a divorce. However, the way you manage your inheritance can change its status.
Risks to Your Inheritance
- Commingling of Funds: If you mix your inheritance with marital funds, such as depositing it into a joint account or using it for mutual expenses, it can become ‘commingled’. This could change its status from separate to marital property.
- Usage for Joint Investments: Investing your inheritance in a property or business owned jointly with your spouse could risk its separate property status.
- Dependence on Inherited Assets: If your spouse becomes financially dependent on your inheritance, it might be argued that the inheritance has become a marital asset.
Strategies to Protect Your Inheritance
- Maintain Separation: Always keep inherited assets separate from joint assets. This might mean maintaining a separate bank account or holding real estate solely in your name.
- Document Everything: Keep meticulous records of any transactions related to your inheritance. Documentation will be vital if you need to prove the separate nature of these assets.
- Prenuptial and Postnuptial Agreements: These agreements can provide a clear outline regarding the status of your inheritance. They can explicitly stipulate that your inheritance will remain separate property regardless of future circumstances. If you’ve already received an inheritance before marrying, a prenuptial agreement can cover this. If the inheritance is received after marriage, a postnuptial agreement might be appropriate.
Getting Help
While receiving an inheritance is a profound connection to your past, it’s equally essential to think about its impact on your future. Safeguarding your inherited assets during unforeseen events like divorce requires proactive planning and careful management.
For those concerned about the safety of their inheritance in light of marriage or divorce, our Brandon estate planning lawyers are here to guide you. With the right strategies and legal structures, you can ensure your inheritance remains a cherished legacy, untouched by marital disputes. Reach out to us today at (813) 438-8503 to schedule a consultation.