By
Pace Law

Protecting Your Inheritance From Divorce

January 3, 2022

The Covid-19 pandemic taught us that life is short, and many individuals have made the decision to go on and make the most of it. Hence, despite the Covid-19 pandemic, it is no surprise that divorce rates have skyrocketed. Being isolated for such a long period of time with a spouse has caused many individuals to reconsider their marriages and life choices.

If you’re debating whether or not to stay in your marriage, think about how you can secure your inheritance while you’re making your decision.

 

Inheritance received prior to the marriage Vs. Inheritance received during the marriage

 

The main difference between inheritance received prior to the marriage and inheritance received during the marriage is that the inheritance that was received during the marriage is subject to be split amongst the couple.

 

Quick Tips to protect your inheritance from the effects of divorce

 

 Keeping the paperwork that prove you inherited the thing/property; documenting the amount of money or property you acquired from that asset. The paper could be a legally binding “will.”

– Keep inherited assets in a separate bank account and do not merge them with cash from sources other than just the inheritance.

– You’ll want an impartial trustee (such as a bank or trust business) to oversee and transfer the assets to you for optimal safety. You will relinquish power in exchange for more protection. Have one of our trusted Family Lawyers at Pace Law Firm to prepare a pre-nuptial or post-nuptial agreement that identifies and specifies your respective properties.

– Do not use your inheritance received prior to the marriage to buy a residence intended to be the matrimonial home, nor should you repair or renovate it. If you do so, you would lose your ability to deduct this amount if you utilized your inherited property to acquire or repair a marital house (or a home intended to be a matrimonial home).

– One of the greatest methods to protect your assets and money before a divorce is to get into a prenuptial agreement or marriage contract.

– Make your own will and estate plan. You don’t want your assets to go to your spouse. Some people believe that they and their spouse need to make an estate plan together, however there is another option which many are not aware of. You can go to an attorney on your own and form your own will and trust.

 

Determining the value of your Inheritance that may be excluded or deducted from the family assets/property

 

For inheritance received prior to the marriage, the value will be the same value as of the date of the marriage.

For inheritance received during the marriage, the value will be the value as of the date of separation.

However, it gets tricky because if the inheritance that a spouse has received prior to the marriage appreciates in value during the marriage, that appreciation in value may also be subject for distribution between the couple.

 

Contact Pace Law Firm Family Lawyers Today!

 

The possibilities you have for preserving and dispersing your inheritances are usually determined by your unique contexts. It’s advisable to engage a lawyer who specializes in inheritance and divorce to thoroughly understand and help you navigate your options. Hire a trusted and reputable Pace Law Family lawyer if you have doubts regarding how to divide an inheritance obtained by your spouse or how to secure your inheritance. At Pace Family Law, our firm has successfully settled hundreds of inheritance and divorce cases.

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191 The West Mall, Suite 1100
Toronto, ON M9C 5K8
Phone: 1-877-236-3060
Fax: 416-236-1809

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