Ten years ago when Ron and Karen created their estate plan, their son Ron Jr. and daughter-in-law Julie were happily married newlyweds. Fast forward to today and their situation is somewhat shaky, with talk of impending separation and divorce. Now Ron and Karen are worried that Ron Jr.’s inheritance may be in jeopardy.
What can you do to protect your children’s inheritance in the event of a divorce?
Typically, inheritance is treated differently than property acquired during a marriage. But the separate designation provided for inheritance does not provide complete protection, as a court usually has broad discretion to consider all circumstances.
Potentially complicated legal issues can arise when a child with inheritance commingles his or her inheritance with other assets obtained during the marriage.