It is natural to want to protect the assets your ancestors worked hard to save for you in an inheritance, especially during a divorce. Under Texas law, anything received through gift or devise is separate property even if you are married at the time you receive that inheritance.
However, when people get married, they spend money with and on each other and pursue joint ventures—potentially combining assets from an inheritance with other property. At Towson Law Firm, PLLC, we understand that you want to protect your inheritance during the complex process of divorce.
The law is on your side—the community property statutes specifically exempt inheritances as long as you can trace the assets. A Frisco divorce and inheritance lawyer could help you protect yourself and your property. Call today to schedule a meeting with an experienced divorce attorney.
Texas is a community property state, meaning the law divides property into two categories—community and separate. The couple equally owns community property, while separate property belongs to one person. Texas Family Code § 3.001 describes the categories of separate property, including property each spouse brings into a marriage or acquires by gift, devise, or descent, including an inheritance.
While the law clarifies that inheritance should be safe in a divorce, it can be challenging to identify when people mix these with other assets. A Frisco attorney who handles divorce and inheritance could explain how separation and divorce can impact inheritance.
Distinguishing between different property types is simple if people keep them completely separate, but that approach is often impractical. Refusing to spend separate funds on the marriage can create tension and result in a lower quality of life for the person with the inheritance. For example, many people use inheritance funds to put a down payment on a family home.
Individuals can take steps to protect an inheritance, even if they use it to benefit their marriage. Maintaining detailed records, including documentation showing when and how assets were received, allows people to combine property without risking their inheritance. These records serve as evidence during divorce proceedings, helping to establish the inheritance as separate property.
Prenuptial agreements can also help. These documents outline how people treat property—separate or community—during a divorce. Prenups can reinforce existing laws that treat bequests as individual property, make them easier to trace, or even specify that some individual property might be treated like community property.
Testators can also establish trusts, which can give the trustee the discretion to release funds from a beneficiary while still protecting the nature of the property. A divorce and inheritance lawyer could help Frisco residents set up these legal tools, even if they are not contemplating the dissolution of a marriage.
You should not have to fear losing your inheritance in the event of a divorce. While comingled assets can make it difficult to trace the origin of property, you can take steps to protect your inheritance.
There are ways to safeguard inheritance as separate property, whether through maintaining separate accounts, establishing trusts, or consulting with a Frisco divorce and inheritance lawyer. Schedule a consultation with a seasoned family law attorney to learn more.
Our Law Firm’s approach to your case is based on individual circumstances. Whether it is a simple negotiated settlement, or it requires an aggressive approach, we will protect and defend your best interests.
