Why Your Inheritance Is Safe In An Illinois Divorce

If you are going through a divorce in Illinois, you may be concerned about getting your fair share of the marital estate. Another common concern is being able to keep separate property, such as an inheritance. If you work with a skilled asset division attorney in Schaumburg, fortunately, your inheritance should be safe. Below, find out more about asset division, inheritance, and related subjects in a divorce. If you have detailed questions, talk to our asset division attorneys at Law Office of Fedor Kozlov today.

Marital And Non-Marital Property In An Illinois Divorce

In Illinois, property that a divorcing couple has is divided into marital and non-marital components. Marital property means all property, including debts, that either party acquired during the marriage. The law presumes that all property in either spouse’s possession is marital unless it meets an exception, such as ‘property acquired by gift, legacy, or descent.’ ‘Legacy and descent’ refers to an inheritance.

Therefore, in Illinois, an inheritance is usually non-marital. But if you have the inheritance, you must show that the property is non-marital. This would mean proving that the asset was gained through an inheritance. Most inheritances are easy to prove because of instructions provided in the deceased’s last will and testament.

Illinois Divorces And Inheritances

Generally, inheritances in an Illinois divorce are considered separate property. Thus, they are not usually subject to proper division. However, some exceptions could make this situation more complex. If you plan to divorce and have an inheritance, your best option is to hire a skillful asset division attorney in Schaumburg to represent you.

Inheritance Exceptions In Illinois Divorces

One issue that can crop up in a divorce where one party has an inheritance is when the funds are commingled with marital property. Suppose you inherited $500,000 from your parents, but you deposited it into a joint account with your spouse. In this scenario, your inheritance’s status as separate property could be questioned in a divorce.

Another situation is if the inherited money benefits any aspect of the marriage. Suppose you inherited the $500,000, and $250,000 is used to upgrade the marital home. The money put into the property will probably lose its separate status.

Remember, if the inherited property is kept separate from marital property, it will probably be considered separate property for divorce. This is the case even if the property has risen in value. That said, if the increase in value of an inherited house was due to the other spouse’s efforts, it may be considered marital property.

How To Protect Your Inheritance

If you have received an inheritance from your family, there are effective strategies to keep your inheritance safe in an Illinois divorce. They are:

Always Keep Your Inheritance Separate

No matter how sure you are about the strength of your marriage, always keep your inheritance separate from marital assets. This means keeping the funds in an account in your name only. Also, never use the inherited money for any marital purpose, such as fixing your marital home or paying off joint debt.

Consider A Prenuptial Agreement

You can protect the inheritance by drafting a prenuptial agreement if you receive it before marriage. The prenup signed by you and your future spouse can be written to clarify that the inheritance belongs to you. The document also can dictate which property, income, and debts belong to whom in the case of divorce.

Another option after marriage is to draft a postnuptial agreement. This document can also be used to keep your separate property if there is a divorce. Ensure both spouses have their own family law attorney representing them when drafting a prenuptial or postnuptial agreement.

Document The Inheritance

Documentation effectively proves you inherited the asset and that it is non-marital property. Documentation might be a copy of the will, trust, or other legal documents showing the inheritance was intended for you alone.

Talk To An Asset Division Attorney

When receiving an inheritance, you should talk to an experienced asset division attorney to ensure that you keep the property separate from marital assets. Paying a small amount for an attorney today can help you save a lot of money if a divorce is in your future.

How To Protect Your Money During A Divorce

In most cases, your inheritance should be safe in a divorce, but what about your other money? Keep these tips at top of mind if you are going through a divorce:

Inventory Your Assets And Debts

With your lawyer’s help, you should get a full disclosure of all individual and jointly-owned assets and debts. Keep copies of credit card and loan statements, tax returns, business debts, and home equity lines.

Understand Mortgage And Rent Payments

Mortgage companies and landlords are entitled to prompt payment regardless of your divorce. Ensure these payments continue on time, or you could have a foreclosure or eviction.

Be Ready To Share Retirement Accounts

Just because your name is on your retirement account does not always mean it is yours in an Illinois divorce. If your spouse has a less robust retirement than you do, your retirement accounts could be part of the property division process. However, your property division attorney will strive to keep as much of your retirement for you as possible. Also, it may be possible to provide your spouse with an asset of similar value so you can keep your retirement funds for yourself.

Alter Your Will

As you get ready to divorce, it is essential to change your will. You want to ensure that money, property, and other assets do not go to your ex. You would probably prefer that your assets after you die go to your children or new spouse.

Speak To Our Asset Division Attorney In Schaumburg

Property division can be complex in a divorce, especially if there is a dispute about what is marital and separate property. If you have an inheritance and are getting a divorce,

you should retain legal counsel today. Please speak to our asset division attorney in Schaumburg at Law Office of Fedor Kozlov at (847) 241-1299.