When a divorce involves inherited assets, many people are uncertain about what the law protects and what may be subject to division. Understanding how inheritance interacts with premarital agreements is essential to protecting your financial interests. The treatment of inherited property can significantly impact the outcome of your divorce if not clearly addressed.
In the video, Atty. Tyler Monahan of Turner-Monahan PLLC discusses what happens when someone receives a large inheritance after signing a premarital agreement and how Texas law treats that inheritance during divorce. All case evaluations are based on Texas Family Law. This content is for educational purposes only.
Is Inheritance Separate Property?
Under the Texas Family Code, inheritance is presumed to be separate property. This is true whether or not it was listed in the premarital agreement. Inheritance is considered separate property by law, by case law, and under the Family Code because it is a gift.
Can Inheritance Be Added to an Existing Agreement?
Even if the inheritance was not originally included in the premarital agreement, the parties can go back and make it clearer. They can add a codicil or an amendment. This makes it explicit that the inheritance is recognized as that person’s separate property. This helps ensure everyone understands and agrees that the inheritance belongs only to that individual.
Legal Presumption of Separate Property
Inheritance is, by its very nature, separate property unless it is proven otherwise. The law presumes that anything received as an inheritance is separate property and not subject to division in divorce unless the other party can prove that it was converted into community property.
How Inheritance Can Become Community Property
Inheritance begins as separate property, but it can lose that status if it is mixed with community funds. For example, placing inherited money into a joint bank account or using inherited funds to improve marital property can allow the other spouse to claim an interest in it. Keeping inheritance separate and documented is important to avoid disputes.
Why Clear Documentation Matters
Courts rely heavily on evidence. If someone receives an inheritance, they need proof, such as bank statements, legal documents, or estate papers, to show where the funds came from. Without documentation, it becomes harder to maintain the separate property claim, especially if the other party argues that the inheritance was used for the benefit of the marriage.
Can a Spouse Challenge Separate Property?
A spouse may attempt to prove that inherited property was transformed into community property through actions such as commingling or gifting. If one spouse can show that the recipient intended to share the inheritance with the other spouse, a court may consider some or all of it to be community property. Intent and financial behavior during the marriage play a major role in this analysis.
What the Texas Family Code Says About Inheritance
Section 3.001: Separate Property Defined
This section explains that property acquired by gift, devise, or descent, which includes inheritance, is legally considered separate property. This means it belongs only to the spouse who received it.
Section 3.003: Presumption of Community Property
All property acquired during the marriage is presumed to be community property unless there is clear evidence proving it is separate. If inheritance is not clearly identified or tracked, it may fall under community presumption.
Section 4.003: Premarital Agreement Content
This statute allows spouses to agree in writing that certain property, including inheritance, will remain separate and will not be divided in divorce. Adding inheritance terms to a premarital or postmarital agreement can provide clarity and prevent future disputes.
Section 7.002: Division of Separate Property
While separate property is not divided by the court, this section explains that separate property must be confirmed by the court. If there is a disagreement, the court will decide based on the evidence presented.
Consult with a family law attorney to review your situation and ensure your inheritance remains secure under Texas law.
Hire An Experienced Fort Worth, Texas, Divorce Attorney
Inheritance can be protected during a divorce when the proper legal steps are taken. Understanding how Texas law treats inherited assets helps prevent costly mistakes and confusion. Schedule a free, no-obligation consultation with Attorney Tyler Monahan to discuss the details.
Check our website for more information about our services. Plus, don’t forget to go through our blog to find out more about your case. There is tons of information on divorce and answers to unique questions like “How Can Parents Establish a New Normal That Prioritizes Their Children?”
FAQs Regarding Divorce
Divorce cases are unique, so you will have many questions. To save you time and hassle, here are some topics that revolve around the area. For more information, contact our firm, Turner-Monahan, PLLC.
Disclaimer
The commentary and opinions are for informational and educational purposes only and are not intended to provide legal advice. You should contact an attorney in your state for legal advice concerning any particular issue or problem. You can become a client and enter the attorney-client privilege only after hiring Turner-Monahan, PLLC, by signing a written retainer agreement.
