How Inherited Assets Are Handled in a Texas Divorce

 Posted on April 04, 2023 in High Asset Divorce

Getting a divorce in Texas can be a complex and stressful ordeal, and things become even more complex when it is a high-asset divorce. Division of assets is a common point of contention in a high-asset divorce, especially when it comes to inherited assets.

Of course, you should always consult an Austin complex property litigation attorney or an Austin high-asset divorce attorney for guidance on your individual case.

That being said, let’s discuss how inherited assets are handled in a Texas divorce.

 Inherited Assets Can Become Subject to Division

In Texas, inherited assets are typically considered separate property by the law, meaning they belong solely to the spouse who received them and are not subject to division in a divorce.

However, it is important to note that if inherited assets have been commingled with marital assets (common in longer marriages), or used to benefit both spouses, they may become subject to division.

Inherited assets can include anything from money in a bank account to a family heirloom or a piece of real estate.

How Inherited Assets Are Handled in a Texas Divorce

The way inherited assets are handled in a divorce can vary depending on several factors including:

• The Length of the Marriage - The length of your marriage is a key factor that can come into play when it comes to inherited assets in a Texas divorce. Typically, the longer a couple has been married, the more likely it is that separate property like inherited assets will be used to benefit both spouses during the marriage, or become commingled with marital property.
• The Source of the Inherited Assets - Perhaps one of the most important things to keep in mind when it comes to inherited assets is proper documentation. If you have inherited assets, it is essential to keep clear records of when and how you received them, as well as where the assets came from. If there is uncertainty or ambiguity regarding the source or documentation of the inherited assets, they may end up being considered as marital assets in the divorce, subject to division.
• How the Inherited Assets Have Been Used During the Marriage - Another key thing is to maintain documentation of how the inherited assets have been used during the course of the marriage. This can help you establish that the assets are separate property and not subject to division.

However, if these assets are commingled with marital assets, or used to benefit your spouse during the marriage, Texas courts may consider them as marital property, subject to division.

For example, if you deposited inherited money in a joint account with your spouse, and used it to pay for expenses like a mortgage or car payments for cars owned jointly by both spouses, Texas courts may consider the money to be commingled.

Similarly, if inherited assets have been used to benefit both spouses during the marriage, it may be more difficult to argue in court that they are separate property.

Ultimately, the way inherited assets are handled in a divorce will depend on the specific circumstances of the individual case. Working with an experienced attorney can help ensure that your rights are protected and that you receive a fair and equitable outcome.

Contact an Austin Complex Property Litigation Attorney

If you are going through a divorce in Texas and have inherited assets, it is important to work with an experienced attorney who can help you protect your separate property rights.

Contact an Austin complex property litigation attorney from Powers Kerr & Rashidi, PLLC. Call 512-610-6199 for a confidential consultation. 

Source: 

https://statutes.capitol.texas.gov/Docs/FA/htm/FA.3.htm