Protecting Assets For Heirs
Transferring wealth from one generation to another is a high priority for many families. For example, if you inherited assets from your parents, it may be important to you that you are able to give assets to your children and grandchildren as well. But, of course, there are unexpected events that can upset long-term plans, and divorce is one of them.
If you are worried about how a pending divorce will impact your assets, including if the divorce will make it difficult for you to shield funds for heirs, talk through your concerns with an Orlando divorce lawyer.
Marital Property and Commingling
In some situations, inherited assets are retained as separate property. Marital property refers to assets that are jointly owned, and most assets gathered during the course of a marriage fall under this category. However, if you received an inheritance from someone in your family and it is completely in your name, you may be able to retain those assets through the divorce process and then give them to your heirs, whenever you choose to do so.
But things can become complicated when commingling becomes part of the process. For instance, if you inherited money and then deposited it into a joint account, one that you used to pay for your marital life, expenses such as mortgages and vacation expenses, it could be argued that funds are marital property, assets open to division during a divorce.
Of course, when an inheritance is large, it could be argued that a percentage of the inheritance is marital property and a portion of it is separate. While this is possible, it is important to recognize that proving assets are separate, and not subject to division, can be difficult. If you truly want to ensure your heirs will receive those funds, explore the benefits of establishing a trust. There is a misconception that trusts are only tools used by the uber wealthy. In fact, they are a useful way for anyone to transfer assets to beneficiaries in a set way.
Analyzing Marital Assets and Equitable Distribution
In Florida, marital assets are subject to equitable distribution during a divorce. Talking through what this means for you with a lawyer will help you to fully understand the scope of your financial situation today and into the future. All assets will be analyzed, including real estate holding, investment accounts, retirement accounts, and business interests.
Once all of your marital assets (and debts) have been reviewed, an Orlando divorce lawyer can walk you through what a Florida court would likely view as a fair division of assets. Then you can determine what your post-divorce goals are, including establishing assets for the children, and the negotiation process can begin in earnest.
What are your future financial goals? Divorce is emotional, and it can be difficult to think past daily issues, but if you have long-range plans that are important to you, share them with the seasoned family law attorneys at Donna Hung Law. Your lawyer will prioritize your objectives, call 407-999-0099 or contact us online to get started.
