Protecting Inheritances and Gifts in Divorce
Many Californians know that if they head into a divorce, the default of property division in California is to divide all marital assets equally. However, when you receive something like an inheritance or a gift that is meant for you alone, you might wonder if you can keep that from being divided in a divorce.
These are thoughtful questions, and the answers will depend on the details of what you have done with the gift or inheritance, and how entangled in your joint assets it has become. There are steps you can take to protect inheritances and gifts from division of property under the community property rules. This article is focused on empowering individuals with some key information on strategies you can employ to ensure that your inheritances and gifts remain yours. For official legal guidance and help navigating your own path, contact an experienced divorce attorney at the Law Office of Bradley S. Sandler.
Pre-nuptial and Post-nuptial Agreements
The most straightforward way to ensure that you know how an asset will be divided in a divorce is to implement a valid prenuptial or postnuptial agreement in the marriage agreement. Strategically planning out and specifying in an agreement as to how specified items will (or will not) be divided before you divorce is a good strategy for maintaining control of how you want the division to work.
Even separate property can become so enmeshed in the couple’s community property that it becomes subject to community property division.
Commingling and Transmutation
It is a mistake to believe that you can just throw a gift or inheritance into a joint bank account, and then easily pull that money out and designate it as your separate property during a divorce. Even if your inheritance or gift was given solely to you, that “separate” property can become so entangled, or “commingled” in the community property, that the separate property becomes “transmuted” into community property. If property transforms, or transmutes, in this wa,y then it is treated as community property.
Common things that can lead to transmutation of separate property into community property include:
- Depositing an inheritance into a joint bank account
- Refinancing your property with community funds
- Paying taxes, maintenance, or mortgage payments on your property from a shared account
The above often lead to an argument from your spouse that they have gained at least a partial claim to the property, since it was supported by community funds, or even indecipherably intermingled into the community funds.
Tracing
To preserve your inheritance or gift during a divorce, you may need to provide evidence that traces the origin of the funds back to establish which funds, precisely, are your separate property and why. This could include documentation such as bank records, wire transfers, or estate documents. An experienced divorce attorney can help you plan the next steps.
Contact the Law Office of Bradley S. Sandler
It is never too late (or too early) to pursue the path that leads to financial security and stability. Whether you are contemplating divorce and the subsequent property division, or you are hoping to start your marriage with clarity, an experienced divorce and family law attorney at the Law Office of Bradley S. Sandler can help. We know how to defend your rights and pursue your best interests in legal matters. Contact our office today to begin working with our esteemed team.
Sources
https://www.finance-monthly.com/david-geffen-divorce-hidden-assets/