How Do I Protect My Inheritance in a Divorce?

Throughout your marriage, it may be natural for you and your spouse to start combining more and more of your assets as you forge a life together. With similar goals in mind, you may even be generous enough to share your granted inheritance with your spouse. However, this may be all fine and well until the possibility of divorce is put on the table. That said, please read on to discover the best practices for protecting your inheritance in the event of a divorce and how one of the seasoned Clarksville property division lawyers at Fendley and Etson can help you protect it.

How might my inheritance be threatened in the event of a divorce?

In the event of divorce, the Tennessee family court will categorize your and your spouse’s assets as marital or separate property.

On the one hand, marital property is the assets you and your spouse acquired during your marriage. Importantly, by Tennessee law, your marital property is subject to equitable distribution. But you may rest easier knowing there may be an exception for an inheritance you received by yourself, even if it was while you were married. This is because it may be specifically designated as separate property through a legal document established by the grantor.

On the other hand, separate property is the assets you and your spouse owned before marriage. Or, again, those with legal documents that mark it as separate property. With this, you must not commingle your inheritance with your other marital property. Plus, do not have your inheritance go through transmutation, where it changes to marital property through an explicit agreement. Or, by how it is used during the marriage.

What is the best way to protect my inheritance in the event of a divorce?

There are certain ways you may protect your inheritance from commingling or transmutation, in the unfortunate event of a divorce.

Say, for instance, you are not yet married but come across an inheritance granted by your loved one. In this case, especially if this inheritance is quite significant, a prenuptial agreement may be in your best interest. This is because you may include a clause that states the inheritance should fall under your ownership rights in the event of a divorce.

On the other hand, if already married when you receive an inheritance, you may create a postnuptial agreement. Better yet, you may make every effort necessary to ensure this inheritance is kept separate from your spouse. This means keeping the inheritance funds in a separate bank account rather than the joint bank account shared by your spouse. Or, if this inheritance is real property, this means avoiding retitling it to include both your and your spouse’s names.

At any rate, don’t hesitate to get in touch with one of the competent Clarksville family lawyers today. We, at Fendley and Etson, look forward to your phone call.