Divorce can be complicated, especially when it comes to property division. You might wonder what happens to inheritances during your divorce. It is essential to understand if your inheritance is subject to property division, as well as the ways to protect it.
The general rule for inheritances and property division
In most cases, inheritances count as separate property, meaning they belong solely to the person who received them. This is good news if you have inherited money or assets during your marriage. However, there are situations where your inheritance might be at risk during a divorce.
When inheritances become marital property
Your inheritance could become marital property (subject to division) if:
- You commingle it with marital assets. An example would be if you deposit inherited money into a joint account.
- You use it to benefit the marriage. This may apply if you use inherited money to renovate the home you share with your spouse.
- You add your spouse’s name to the inherited property.
In these cases, your inheritance may lose its separate property status and become subject to division during divorce proceedings.
Protecting your inheritance
To safeguard your inheritance from property division in a divorce, you may consider these strategies:
- Keep it separate: You may want to maintain inherited assets in a separate account under your name only.
- Document everything: It may be best to keep detailed records of your inheritance, including the source and date received.
- Create a trust: Consider placing inherited assets in a trust to maintain separation from marital property.
- Get a prenuptial or postnuptial agreement: These legal documents can specify how to manage inheritances in case of divorce.
It is important to note that laws regarding inheritances and divorce vary by state. Consider consulting a qualified attorney who can provide guidance based on your specific situation and location.
Taking the initiative to protect your inheritance could help ensure that it remains your separate property in the event of a divorce.