Inheritance and High Asset Divorce

 Posted on September 22, 2017 in High Asset Divorce

Texas law requires that divorcing couples divide their property in an equitable manner. However, this rule only applies to marital property, as separate property will remain under the sole ownership of the original holder. Inheritances, for example, are considered the separate property of the person to whom they were bequeathed, even if they were given to one spouse during a marriage. In some cases, it is still possible for another party to retain a portion of one spouse’s inheritance, so if you were given a valuable gift or inherited property from a loved one during your marriage and you are now going through a divorce, please consider speaking with a high asset divorce attorney who can help you protect your assets.

Separate Property

Under Texas law there are three types of assets that qualify as separate property:

• Any property owned or claimed by a spouse prior to the marriage;
• Property acquired by a spouse during a marriage through an inheritance or gift; and
• Any financial recovery collected for personal injuries sustained by a spouse.

There are a few exceptions to these general rules. For instance, even if a spouse collected a settlement from a personal injury claim, he or she would be required to divide the amount that was recovered for loss of earning capacity, despite the fact that these types of awards are considered separate property. Although relatively uncommon, there are some exceptions for inheritances as well.

Inheritances

Generally, when someone receives an inheritance while married, those assets will remain under his or her sole ownership. However, in some cases, when the receiving spouse commingled the proceeds from the inheritance with community property, then a court may decide to categorize the entire amount as marital property. For instance, if a woman received $20,000 in an inheritance, but then deposited it into a joint savings account with her spouse, the funds could be labeled community property, as it would soon become difficult to differentiate whose money was spent. Inheritances can also become community property if they are used to invest in marital assets, such as a couple’s home.

Essentially, once assets are commingled or used on jointly owned property, they will no longer be considered separate. In fact, this is true even if the inheritance was acquired prior to the marriage as long as the assets were later commingled.

Call a Round Rock High Asset Divorce Attorney for Help with Your Case Today

Property division is one of the most difficult aspects of any divorce, especially in situations that involve high assets. Those who need help understanding how assets, including inheritances, could be affected by a divorce should speak with a passionate Round Rock divorce lawyer who can assess their situation and provide counsel. If you need legal assistance with a property-related divorce issue, please contact Powers and Kerr, PLLC to get the representation you deserve.

Source:

http://www.statutes.legis.state.tx.us/Docs/FA/htm/FA.3.htm