Protecting Inherited Assets in a New York Divorce: What You Need to Know

Particularly in a jurisdiction with equitable distribution laws like Inheritance Divorce New York can be a delicate topic during divorce proceedings. Even while inheritance is normally regarded as distinct property, there are situations in which it may become marital property and be divided. Protecting your assets in a New York divorce requires knowing how inheritance is handled.

Does Inheritance Qualify as Separate or Marital Property?

Assets obtained prior to marriage, gifts from outsiders, and inheritances inherited by one spouse, regardless of when they were acquired, are all considered distinct property in New York. This indicates that an inheritance is typically not split between spouses in a divorce. There are some exceptions, though, if the inheritance is combined with marital property.

The Impact of Commingling on Inheritance

When an inherited wealth is combined with marital property, it is known as "commingling" and becomes difficult to tell the two apart. Here are a few typical instances of commingling:

•     transferring inheritance funds to a joint account for use in paying for household bills.
•     acquiring a shared residence or other jointly held property using inherited money.
•     use inheritance funds to improve marital property, such remodeling a family home.

The court may decide that inheritance has become marital property after it has been commingled, subject to equitable division.

How to Preserve a Divorce Inheritance

Take into account the following if you want to prevent an inheritance from becoming marital property:

1.     Don't combine inherited money with joint marital funds; instead, keep it in a different account.
2.     Steer clear of utilizing inheritance to pay off joint investments or marital obligations for the benefit of both spouses.
3.   Keep thorough records attesting that the inheritance was meant exclusively for you.
4.  Examine a prenuptial or postnuptial agreement that expressly specifies that inherited property be kept separate.

New York Law Considerations

When deciding how to divide up property, New York courts have discretion and consider each case according to its particular facts. The inheriting spouse bears the responsibility of proving which portion of a commingled inheritance is still separate. Early legal advice seeking can help guarantee that inheritance is adequately safeguarded.

In conclusion

In a New York divorce, inheritances are usually not divided, but how they are managed can have a big influence on whether they stay distinct property. People can prevent potential arguments during divorce processes and guarantee that their inheritance is safeguarded by being proactive.