November 19, 2014

Divorce generates a lot of difficult questions about property division, but one of the most challenging questions you don’t want to have to consider is whether you may lose some of your inherited assets. Even though some states may not consider assets inherited by one party as jointly-owned marital property by both parties, you can take some preventive steps to protect these assets.

There are three key steps you can take to protect your inherited interests in light of divorce:

• Keep copies of all documents related to the assets. Anything that shows the property was intended only for you, and not for you and your spouse, is important. If you have a letter from the person who passed the property on to you, add this to your copy arsenal. The more solid evidence you have that this property was intended for ownership by you alone, the better.
• Don’t mix inherited money with accounts that are linked to your spouse as well. Park your inheritance in a separate investment or bank account. This helps to support the idea that the inherited money was not intended for the use of both spouses. Likewise, keep the titles in your name only, especially if you’ve been gifted an inheritance for the purchase of a specific item, like a home.
• Consider a prenuptial agreement. If you want to help protect inherited assets like property, money, or businesses, a prenuptial agreement is one all-encompassing approach to shielding these assets. Make sure there is a clause specifically explaining that a spouse has no right to inherited assets in the event of a divorce.

Advance planning is the best approach to protecting inherited assets from becoming a target during your divorce. Contact our office for assistance at 732-521-9455 for more details.