All You Need To Know About Inheritances and Gifts in Family Law

Among the many issues to be addressed in any divorce process is the division of the couple’s belongings or in technical words, the distribution of the marital property. But what exactly is marital property, and what does it have to do with my divorce?  How can a divorce lawyer help to protect my inheritance during a divorce?

When a marriage ends, each person’s equal contribution to the family property is recognized. The law provides that the value of any property acquired by a spouse during the marriage period and which still exists at the time of separation must be shared equally between the spouses. 

There are some recommended ways to handle gifts or inheritances if they must make it to the list of excluded properties.


Speak to a divorce lawyer about Opting for an Option that Protects Inheritance

Before or after the marriage, the spouses have numerous alternatives for protecting their excluded assets, including going to an attorney to draft a marriage contract. They may first go before a notary to draw up a marriage contract before the wedding celebration. They can then choose the separation of property regime, which allows each spouse to keep ownership of property they bought on their own before or during the marriage with their own money. The products purchased by the two spouses will be theirs in proportion to the shares gained, which correspond to their respective contributions.

 

Keep all excluded properties exclusive

When computing net family property, don’t forget to factor in items like third-party gifts, inheritances, personal injury awards, and life insurance proceeds. If you receive gifts from any of the sources listed above, try to keep them apart from your other belongings. You risk losing your exclusion if you don’t. You must demonstrate that you are entitled to exclusion, thus keep meticulous records of all financial transactions involving excluded property. If you fail to justify your exclusion, you will lose your excluded property to the family net property.

 

In case of litigation, think of the joint bank accounts

In a contentious divorce, relationships are sometimes conflicting. Certain precautions are necessary to protect their heritage. Start by modifying the terms of the joint account(s) so that they can no longer operate without the agreement of the two spouses, and no longer one or the other. Revoke any proxy given to your spouse in your personal account. Change the secret code allowing access to your account to avoid any untimely consultation by the other spouse.

 

Do not fail to deduct all deductible

When computing your net family assets, you are allowed to deduct your net worth on your marriage day. After some years, you may forget your marriage day personal assets, much less be able to prove it. To make the most of a deduction, keep a record of your asset’s value on the day of your marriage. Failure to prove deductions means that you will forfeit it…

 

Beware the matrimonial home

The value of a matrimonial home is an exception to the rules of sharing assets on separation or divorce. This is evidently a significant exemption because for most couples, their marital home is one of their most significant properties. As a result, you must be cautious about the finances you use to purchase your marital house. Using excluded property will make you lose its exclusion. In the same way, when purchasing a matrimonial home, make sure that there are other assets at least equal in value to what your net worth was on your marriage day. You should speak to a divorce lawyer to assist you with putting together your financial statement for your divorce or separation.

 

Relocate from the matrimonial home

If you are living in a home you owned on the day you married, you would lose half of the home to your spouse on separation. The law allows you to deduct from your net family property the value of assets you owned on your date of marriage; however, this does not include the value of a matrimonial home.

 

Purchase life insurance

This fact can be used to generate exclusions for property that must be included in your net family property. By procuring life insurance on other family members or business partners. You make a longstanding investment in assets that you need not share with your partner if you separate or divorce.  Consult a family lawyer for advice specific to your situation.

 

Improve the value of excluded property

Let us assume you have kept your excluded assets separate from your other property. If you can enhance the excluded property, by fixing up an inherited building, you are enhancing the value of your excluded assets.  Speak to one of our divorce lawyers for more information.

 

That’s all for today! We hope this information has helped you!

Protecting your inheritances and gifts on separation can be pretty simple if you have the right divorce lawyer standing by your side. Get in touch with us today and have your heritage protected. Call us now at 905-366-0202 to schedule a free consultation with a family lawyer today or you can write to us here.

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