How to Keep an Inheritance During a Divorce (to the extent that you legally can)
This article provides sound advice regarding what to do with an inheritance or even a large gift received by one spouse during a marriage. In sum,
- Negotiate a Prenuptial (or Antenuptial) Agreement
- Save documentation regarding how you obtained the inheritance or gift, such as receipts or bank records indicating from whom, to whom, and how much
- NOTE: Make sure, if possible, any checks indicate whether a large gift is to one spouse individually, or both spouses jointly. Too often there are checks written to one spouse, later claimed by an adverse spouse to have been a joint gift to the marriage. REMEMBER: Get and save the documents NOW, because banks typically destroy data after 7 or so years! Evidence of your separate property claim may not exist in the future!
- Maintain Separate Accounts
- This means keep your inheritance or gift from other money which could be considered marital property. Mixing separate property, such as an inheritance or gift, is called commingling, and can entitle the other spouse to a large portion of what was formerly separate property.
- Rely on Trusts
- Keep Titles in One Name
- This means do not open accounts in joint name and put the inheritance or gift in it, or use the inheritance or gift to purchase property titled in joint name. Donative intent will be presumed and the property will become marital in nature. This is called transmutation.
No comments:
Post a Comment