Protecting Inheritances in High-Asset Divorces

 Posted on February 06,2015 in Complex Property Litigation

Current divorce rates have been a recent hot topic. And although these statistics fluctuate, the general consensus is that approximately 40 to 50 percent of first marriages will end in divorce. The failure rate for subsequent marriages is even higher. Most couples who get married believe that it will be "forever." However, the reality is that couples have a 50-50 shot at making it work. Hence, it is a good idea for couples to not just consider the romantic possibilities of marriage, but to also consider the realities of divorce. Furthermore, if you are planning to get married, and anticipate receiving a future sizable inheritance, it is important to consider ways to avoid a high-asset divorce—pending the worst becomes reality.

One of the easiest and safest ways to protect inherited properties is to draw up a prenuptial agreement before marriage. If you are already married, then you and your spouse may want to draft a postnuptial agreement. Each of these documents work to protect both parties in the event a marriage ends in divorce.

Ownership of assets such as inherited property, money, businesses, or other valuables can be clearly spelled out in an agreement, and can ensure that there will not be a long, drawn out divorce fight over the inherited assets.

If you do not have a prenuptial or postnuptial agreement, then it is vitally important for you to save any documentation which clearly explains that an inherited asset was meant solely for you and not for you and your spouse. Should you inherit property during your marriage, do not add your spouse's name to the deed. Doing so could ultimately entitle him or her to half ownership. The same goes for any money inherited during a marriage. Keep the money separate and in your name only. If funds are deposited in a joint marriage account, they will then become part of the marital estate and your spouse may be entitled to 50 percent.

If you received a large inheritance and are considering a divorce, please contact an aggressive Cedar Park complex litigation attorney to find out how you can protect the assets that were bequeathed to you.