When filing for a divorce, safeguarding inherited assets from being distributed to your soon-to-be ex-spouse can be one of the major concerns. You may not want your ex to get any part of your inherited property or money.
Fortunately, adept divorce lawyers like David R. Phillips can help you plan the best way to protect your assets even before your marriage. He can also help safeguard inherited assets should you or your spouse file for divorce. Call 219-929-7060 to speak to him regarding your unique case.
Inherited Assets Division in Divorce
Most states recognize inheritance assets or properties as separate and are not subject to equitable or equal distribution. Whether you inherited a beneficial trust, property, or savings account from a family member before marriage, it will likely be considered a separate property during divorce, especially if it was gifted only to you. This means the inheritance will be solely yours if it was not commingled with any marital assets.
But there are certain circumstances where how the inheritance is handled impacts your ex's ability to claim it. For instance, if a separate and community property was commingled or used to benefit both of you, it would be subject to division in case of separation or divorce.
People often put the money into a joint account, use it for household expenses or mortgage payments, or buy a house where they live as a family, making inheritance a part of the marital funds due to commingling.
Making prenuptial or postnuptial agreements also impacts how inheritance would be distributed during divorce. Spouses often sign such agreements when the inheritance is increased or improved upon due to the combined efforts of both.
If no prenup was signed and the non-inheriting spouse contributes labor, time, and money to increase the property's value, the court may consider the property a marital asset.
How to Keep Your Inheritance Separate
The inheritance will exclusively belong to you if you keep it in a separate bank account or do not commingle it. Add your spouse as an authorized user rather than adding their name to the credit card or account.
If you ever decide to rent the property, hire a contractor or property management company instead of asking your spouse to help. If they add value through labor, time, or money, they can lay claim to it legally.
If you plan to sell the property to purchase a new home, keep it in your name. Adding the spouse to the title of the purchased property means they technically own half of it.
Protect Your Inheritance with a Prenup
Prenuptial agreements are helpful when it comes to protecting inheritances as well as other assets assimilated before marriage. Spouses can add provisions regarding asset division in the event of divorce.
People with relatively higher incomes than their significant others or ones with substantial inherited assets usually prefer signing prenups to make it clear which properties are separate. Reach out to a knowledgeable family law attorney today to discuss your needs. He can prepare the agreement as per the state laws and answer all queries you might have regarding the division of the inherited assets in a divorce.
What If It Is Too Late for a Prenuptial Agreement?
If you are married, your spouse and you can no longer opt for a prenup. However, our family law attorney can guide you in preparing a postnuptial agreement to address similar issues.
If you are already divorcing or separating, our divorce lawyer can help you protect the inheritance throughout the property distribution procedure. He will help you understand your legal rights and steer your case toward the best outcome.
Besides helping protect inherited assets in a divorce, David R. Phillips can also competently represent your case concerning custody, child support, alimony, name changes, visitation rights, and other criminal law, family law, and personal injury lawsuits.