Inheritance is the amount of money which a person receives from their family, it could be parents, grandparents, or even other siblings in most cases. In the scenario that you are married, chances are that your bank account and other assets are shared with your spouse. What happens to it when both of you decide to separate and get a divorce? These are the kinds of questions that pop into mind when it comes to the inheritance money of either one of you. Depending on the scenarios, different things may happen in different scenarios. The purpose of this article is to explore things that may occur.
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Joint Accounts/Assets
In the scenario that you and your spouse have joint accounts or assets, there is a chance that you will receive your inheritance in that same place. When this happens, your inheritance along with your assets and accounts will merge with each other. At the time of divorce or even separation, chances are that they will be treated as an equal asset for you and your spouse. Your inheritance will be shared between the both of you as there is no difference left between the two.
In the case of having joint accounts or assets between the spouses, when a divorce happens calculations have to be made. The spouse whose asset has grown the most has to pay an amount to the other spouse. But at the same time, if there is any inheritance received during the course of marriage then it will not be accounted for during the split.
Calculations are made from the time before the inheritance and the percentage against the inheritance amount is for deducted accordingly. This is a complicated and lengthy process which may displease either one of the parties. Read more at https://canadatousd.com
Mention in Marriage Contract
Even though they may come off as hostility at the time of marriage, it is one of the most feasible ways to protect yourself from the unexpected circumstances of inheritance money. By distinctly mentioning it in the marriage contract, you can keep your inheritance money safe and off-limits from your spouse.
Separate Accounts
If you have separate accounts, things are likely to be less complicated. The inheritance amount is kept safe and chances are that your spouse will not demand any kind of share from it. Despite a separate account, it is best to keep a record of the received inheritance with the dates and proper proof. The separate account you have should clearly indicate when the inheritance was submitted, where it came from, and how it has been spent (if it is).
*Note: Any joint debts that you took with your spouse and pay with your inheritance can become a question at the time of separation. To avoid such a complication, it is best to never use inheritance for such purposes.
Conclusion
Divorce is a complicated matter and when inheritance comes into picture, further problems can arise. Therefore, it is best to keep yourself safe from the beginning and make better decisions for the unforeseen future.