The decision to go through with a divorce can be even more overwhelming if you’ve just come into an inheritance. The worry that your spouse might lay claim to that financial gift adds an extra layer of stress, leaving you unsure about your options. But don’t worry—there are proactive steps you can take to safeguard your inheritance and protect your financial well-being. In this post, we’ll explore essential strategies and insights that can empower you to secure your financial future during this challenging time.
How Michigan Law Handles Inheritance in Divorce
Under Michigan law, inheritance is not automatically subject to division during a divorce. Typically, assets acquired before the marriage or as a gift to one spouse are not considered marital property and are, therefore, exempt from division. However, certain circumstances may allow inheritance to be included in the marital estate and divided between spouses.
For instance, if you have used your inheritance towards joint expenses or commingled it with other assets, it can lose its separate status and become part of the marital estate. Additionally, if your spouse has contributed to managing or increasing the value of your inheritance during the marriage, they may claim a portion of it during divorce proceedings.
Proactive Measures to Safeguard Your Inheritance
Taking steps to protect your inheritance before initiating a divorce can prevent future financial complications. Here are practical tips to ensure your inheritance remains separate.
Keep Inheritance in a Separate Account
One of the simplest ways to protect your inheritance is by keeping it in a separate account. Avoid depositing inherited funds into joint accounts or using them for marital expenses. By maintaining a clear distinction, you can better argue that the inheritance is separate property.
Document Everything
Maintain thorough documentation of all transactions involving your inheritance. Keep records of the source of the inheritance, how funds are used, and any account statements. This documentation can serve as evidence in court to support your claim that the inheritance remains separate.
Consult a Financial Advisor
A financial advisor can provide tailored strategies for protecting your inheritance. They can help structure your financial affairs to minimize the risk of commingling and provide advice on asset management.
Legal Protection Strategies
Legal tools and agreements can also offer robust protection for your inheritance. Utilizing these strategies can provide peace of mind and safeguard your assets.
Prenuptial and Postnuptial Agreements
Prenuptial and postnuptial agreements are powerful tools for protecting inheritance. These agreements can explicitly state that any inheritance remains separate property, regardless of how it is managed during the marriage. Consulting a skilled attorney is crucial to drafting a comprehensive and enforceable agreement.
Establishing Trusts
Trusts are another effective way to protect your inheritance. By placing inherited assets into a trust, you can shield them from marital property division. Trusts offer flexibility and control over how assets are managed and distributed.
Legal Counsel Is Essential
Navigating the complexities of inheritance and divorce requires skilled legal guidance. An experienced divorce attorney can help you understand your rights, draft protective agreements, and represent your interests in court.
Take Charge – Secure Your Future
Deciding to divorce is never easy, especially when your inheritance is involved. By following the strategies outlined in this post and seeking guidance from financial and legal professionals, you can secure your inheritance and safeguard your financial future. Remember, being proactive is vital to preserving your hard-earned assets.
If you’re facing the prospect of divorce and want to protect your inheritance, reach out to the Law Offices of Michael A. Robbins. With over 30 years of experience, our team is well-versed in high-asset divorce cases. We provide personalized attention and knowledgeable legal representation to help you secure your financial interests.