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Safeguarding inherited assets in a New York divorce

On Behalf of | Jun 1, 2023 | High-Asset Divorce

Divorce can present challenges, particularly when it comes to dividing assets. If you have received an inheritance and feel concerned about protecting it during a divorce, understanding your rights and taking proactive steps is essential.

Here are the best strategies for safeguarding your inherited assets in the midst of a divorce in New York.

Documentation and separate property classification

Proper documentation is crucial to establish the separate nature of your inherited assets. Gather and maintain all relevant documentation, such as wills, trust documents or estate settlement papers, that clearly indicate your inheritance. Demonstrating that you acquired the assets solely through inheritance helps establish them as separate property not subject to division in the divorce.

Separate account and title

Create a separate account and keep inherited assets separate from marital assets. Avoid commingling inherited funds or assets with joint accounts or marital property. Maintain clear records of transactions and refrain from using inherited funds for joint expenses. Keeping separate titles to the inherited property also helps establish its separate nature in divorce proceedings.

Financial disclosure and transparency

Maintain open and transparent communication regarding your inherited assets during the divorce process. Accurate financial disclosure is crucial, as failure to disclose inherited assets can result in legal consequences. Provide complete and accurate information about your inheritance, ensuring it is properly accounted for in asset division.

Consultation with professionals

Meet with a financial advisor or a divorce mediator familiar with New York divorce laws. With their expertise, you can develop a strategy to safeguard your assets.

Protecting your inheritance during a divorce requires proactive measures and attention to legal and financial considerations. Understanding your rights and taking appropriate action will help ensure fair asset division in your divorce.