Can You Keep Your Inheritance in a Divorce?
When going through a divorce, one of the biggest concerns for many couples is how their assets will be divided. This can include everything from the house and cars to bank accounts and retirement funds. But what about inheritances? If you received an inheritance from a family member, can you keep it in a divorce?
The answer is not always straightforward, as it depends on several factors. Below, we’ll take a closer look at how inheritances are typically treated in divorce proceedings.
Separate vs. Marital Property
The first thing to consider is whether the inheritance is considered separate or marital property. In general, separate property includes anything that was acquired before the marriage, after a legal separation, or through a gift or inheritance specifically designated to one spouse. Marital property, on the other hand, includes anything that was acquired during the marriage.
So, if you received an inheritance before getting married or after legally separating from your spouse, it would likely be considered separate property and would not be subject to division in a divorce. However, if you received an inheritance during your marriage, it would likely be considered marital property and would be subject to division.
How Inheritances are Divided
If your inheritance is considered marital property, it will typically be divided according to your state’s laws. Some states follow an “equitable distribution” model, which means that assets are divided fairly but not necessarily equally. Other states follow a “community property” model, which means that assets are split 50/50.
In either case, the court will consider several factors when dividing assets, such as each spouse’s income and financial needs, the length of the marriage, and any other relevant circumstances. This means that the court may not necessarily split the inheritance 50/50 even if it is considered marital property.
Protecting Your Inheritance
If you want to ensure that your inheritance is protected in case of a divorce, there are several steps you can take. One option is to sign a prenuptial agreement before getting married that specifically designates your inheritance as separate property. This can help ensure that your inheritance is not subject to division in a divorce.
If you are already married and did not sign a prenuptial agreement, you may be able to keep your inheritance as separate property by keeping it in a separate account and not co-mingling it with marital assets. This can help prove that the inheritance was intended to be separate property and should not be subject to division.
Additionally, if you receive an inheritance during your marriage, you may want to consult with an attorney to determine the best way to protect it. This may involve setting up a trust or taking other legal steps to ensure that the inheritance remains separate property.
The Bottom Line
Inheritances can be a tricky issue in divorce proceedings, but with the right planning, you may be able to protect your inheritance and ensure that it is not subject to division. Whether you are getting married or already married, it is important to understand your state’s laws and take steps to protect your assets in case of a divorce. Consulting with an attorney can help ensure that you are taking the necessary steps to protect your financial future.
- Understand whether your inheritance is separate or marital property.
- Depending on the circumstances, you may be able to protect your inheritance through a prenuptial agreement or by keeping it in a separate account.
- If you receive an inheritance during your marriage, consider consulting with an attorney to determine the best way to protect it.
In summary, keeping your inheritance in a divorce depends on several factors, including whether it is considered separate or marital property and your state’s laws. While inheritances can be a tricky issue, taking steps to protect your assets can help ensure that you are financially secure in the event of a divorce.