When your friend’s marriage came to an unexpected end after 10 years, she found herself grappling not only with emotional torment but also with complex legal questions. One pressing concern was whether or not the substantial inheritance she received from her grandmother would be considered community property in her divorce.
Your friend’s concern is not uncommon. Many Texans facing divorce wonder about the status of their inheritances and other personal assets after the court divides assets. Will the court classify their assets as community or separate property?
How Does Texas Law Classify Your Inheritance?
The State of Texas operates under Community Property law, and dividing assets during a divorce can get complicated as a result. Generally, any assets attained during the marriage are considered Community Property and are subject to “just and right” division by the court. However, there are notable exceptions.
Inheritances are typically treated differently. According to Texas law, inheritances received by one spouse during the marriage are usually classified as Separate Property if they have been kept separate from community assets. If kept in a separate account and not commingled with marital funds, an inheritance should generally not be subject to asset division.
Safeguard Your Inheritance as Separate Property
No one getting married ever plans to divorce. However, there are steps you can take to make sure your inheritance remains separate property in the event of a divorce.
Keep it Separate
Keep your inheritance in a separate account. Do not deposit it into a joint account or otherwise combine it with community funds.
Keep Documentation
Be sure to have documentation that lists you as the inheritor, the amount of the inheritance, the date of the original bequeathment, etc.
Consider a Trust
Many people choose to put the inheritance into a trust. This not only establishes the funds as separate property. But it is also harder to access and less likely to be spent frivyolously or commingled with community funds.
Seek Professional Counsel
Seek the advice of a capable financial advisor and a skilled family law attorney. They will help you develop an estate plan that protects your inheritance. And provides a roadmap for legal and financial matters.
Please Call Christman | Daniell for Your Legal Needs Today!
Are you looking for family law services in Texas? Christman | Daniell is your premier choice. With years of experience and a deep understanding of the legal landscape, our skilled team is dedicated to helping families navigate complex legal matters. Whether it’s divorce, child custody, or adoption, trust Christman | Daniell. We provide compassionate and effective representation for all your family law needs throughout Collin County.
Please consult an attorney for advice about your situation. The material on this website and in this or any blog article we publish are for informational purposes only. They do not constitute legal advice. The attorneys at Christman | Daniell believe in tailoring legal advice and solutions to your circumstances.
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