Divorce can raise concerns about protecting inherited property, especially under Alabama’s equitable distribution laws. While the courts aim for a fair division of marital property, understanding strategies to keep inherited assets separate can make a significant difference.
Keep inherited property separate
Inherited property remains separate if it is not commingled with marital assets. To ensure this, avoid depositing inherited funds into joint accounts or using them to pay for shared expenses. Keeping these assets in a separate account or maintaining clear records of ownership strengthens your claim that they are not marital property.
Use a prenuptial or postnuptial agreement
A prenuptial or postnuptial agreement can protect inherited property during a divorce. These legal documents outline which assets will remain separate, regardless of how they are used during the marriage. In Alabama, courts typically honor these agreements as long as both parties enter them voluntarily and with full disclosure.
Maintain proper documentation
Detailed records are essential for proving that inherited property should not be divided. Keep copies of wills, trust documents, or other paperwork showing how and when you acquired the inheritance. Receipts, bank statements, or property deeds can also serve as evidence to support your claim.
Avoid using inherited property to benefit the marriage
Using inherited property for marital purposes, such as home improvements or joint investments, can blur the line between separate and marital assets. Alabama courts may consider such assets as commingled, making them subject to division. Keeping inherited property distinct helps preserve its separate status.
Moving forward with security
Securing your financial future often depends on strategic planning and informed decision-making during life’s pivotal moments.