Protecting your inherited assets and family heirlooms can be a top priority when you are going through a high-asset divorce. These items often hold financial and sentimental value, making them particularly important to preserve. Knowing how you can safeguard your legacy during property division is essential.
Understanding separate property
First, it is crucial to understand the concept of separate property and how it differs from marital property.
In most cases, courts consider assets you inherited or received as gifts during your marriage as separate property. This means they are typically not subject to division in a divorce. However, it can get complicated if you have commingled these assets with marital property. This may also apply if their value has increased during the marriage due to joint efforts.
To protect your inherited assets, you can consider the following efforts:
- Keep detailed records of when and how you received the inheritance
- Maintain separate accounts for inherited funds
- Avoid using inherited money for joint marital expenses
- Omit adding your spouse’s name to inherited property titles
Keep in mind that if the value of these inherited assets increases during the marriage as a result of your joint efforts, they may be subject to property division. Consulting an attorney can help guide you through these complexities.
How you can protect your family heirlooms
Family heirlooms can be trickier to protect in a high-asset divorce, especially if they have been in your shared home for years. Here are strategies you may consider to protect them:
- Document the history of the heirloom, proving its origin in your family
- If possible, keep heirlooms in a separate, secure location
- Consider including specific provisions about heirlooms in a pre- or postnuptial agreement
- Be prepared to negotiate or offer other assets in exchange for keeping your heirlooms
In complex cases, you might need to enlist the help of a forensic accountant or appraiser to value your inherited assets accurately. This can be valuable if the assets have appreciated significantly or if there’s disagreement about their worth.
With the right strategy, you can increase your chances of protecting your inherited assets and family heirlooms during property division.
