Property division can be a challenging aspect of divorce, especially when inheritance is involved. Understanding state laws on this matter can help you protect your separate assets.
What Texas law says about separate property
In Texas, separate property refers to assets you owned before a marriage or acquired during marriage through gift, devise or descent. If you receive an inheritance, it counts as separate property. This means that the courts will not subject this to property division in a divorce.
However, the law can treat your inheritance as community property if you use it for the benefit of your marriage.
How to avoid commingling assets
Commingling means mixing your separate assets with community property. Consider these tips to help you establish your inheritance as separate property:
- Never deposit your inheritance money into joint accounts.
- Open a new bank account dedicated solely to your separate funds.
- Keep copies of documents proving ownership of your inheritance.
- Avoid using your inheritance for joint purchases.
But what happens when you unknowingly commingled your inheritance? If so, tracing the separate portion can be extremely difficult. As a result, a judge may be unable to identify your inheritance as separate property, putting it at risk of becoming part of the community estate.
Actions to take moving forward
Navigating the complex rules of property division can be overwhelming. You may end up neglecting crucial factors needed to prove your separate property. To gain the clearest insight into your situation and property rights, seeking legal advice can be your best move forward. Protecting what is rightfully yours requires meticulous record-keeping and a clear understanding of Texas property law.