Do I Need to Share My Inheritance in a Texas Divorce?

 Posted on May 21,2024 in High Asset Divorce

When facing a divorce, many people know that their assets and property are likely to be divided. However, when you have an inheritance to your name, you might be wondering if you will have to share this aspect of your assets as well.

Fortunately, inheritances, even those received during marriage, are generally safe from division in a Texas divorce, though there are some situations where your inheritance might be subject to splitting. A skilled Texas high asset divorce lawyer can tell you more.

Is My Inheritance Community Property?

In Texas, marital assets are subject to the state’s community property laws. These laws outline that, in general, property and assets acquired during marriage are considered marital assets and subject to division and distribution during the divorce process. Only property and assets that are separate property, meaning they belonged to one spouse before marriage, are considered exempt from being divided under community property laws.

However, the law also defines separate property as property that is acquired during marriage by “gift, devise, or descent.” This means that if you receive an inheritance before your marriage or during your marriage, it is typically considered separate property and not subject to division upon divorce.

That being said, there are some cases where it can be difficult to ensure your entire inheritance is protected in the case of a divorce. For example, you may have combined your inheritance with other marital assets, making the exact amount of your inheritance challenging to recover, or you may have invested your inheritance into something like a business. There is a good chance the business created during your marriage is considered community property, and it may be subject to division.

How Can I Keep My Inheritance Safe in a Divorce?

If you are expecting to receive an inheritance before your marriage or during your marriage, or you simply want to safeguard your interests in the case of a divorce, there are a few steps you can take to keep your inheritance safe from division in a divorce.

• Create an estate plan that outlines how to invest your inheritance separately or place your inheritance into a trust

• Consider creating a pre- or post-nuptial agreement that details any inheritance received as your separate property

• Refrain from mixing your inheritance with marital assets or using it to pay off marital debts

• Keep your inheritance and any related investments in a separate account

Contact an Austin, TX High Asset Divorce Lawyer

Ensuring you keep your inheritance safe during a divorce is important, and you will need the assistance of a knowledgeable Travis County, TX high asset divorce attorney to do so. Our attorneys at Powers Kerr & Rashidi, PLLC are board certified in family law, and we aggressively advocate for your rights to keep your inheritance during a divorce.

Call 512-610-6199 for a consultation.