Inheritance

Sharing inheritance in Divorce Mediation

If you have children support from a previous marriage and are getting a divorce now, it is vital to protect your assets, especially those you want to pass on to your children. 
In divorce mediation, the spouses themselves decide how to divide their property and assets. Then, the mediator helps the two parties find a solution that works for them.

What is an inheritance?

An inheritance is a property or other assets left behind by a deceased person given to someone else as a gift. It can include money, property, or other tangible items—such as stocks or bonds—typically awarded through a will or trust. If someone receives a gift during their lifetime, it is not considered an inheritance for divorce.

Sharing inheritance

Sharing Inheritance is a Complicated Subject to Consider!

Addressing the inheritance question in divorce mediation can be complicated. People claiming an inheritance but unable to verify it is one of the most prevalent issues I see in my sessions.

A divorce or mediation does not include the value of inheritances received during your marriage. However, you may not realize that to take benefit of those gifts or inherited assets, and you must treat them in a precise way.

First, you must demonstrate that the gift or inheritance is still valid at the time of separation. Otherwise, there is nothing to rule out. As a result, if the gift or inheritance is in the form of cash, you should keep it separate.

Set aside the funds in a separate account, buy a stock that you wish to keep distinct from your other investments, or invest it in a long-term investment. If you put that money in your usual spending account, it will get muddled up, and you won’t be able to figure out the actual amount.

To ensure that this critical part of your life is handled correctly in the divorce, you’ll need to ensure you have your ducks in a row beforehand. Here’s what you need to do:

1. Gather financial records from before and after your marriage.

This is necessary, so the mediator knows how much of the inheritance you received before and after the marriage. As a result, it will show if it is marital property or not.

2. Make a list of all assets received during the marriage.

It’s essential to understand what these assets are worth now versus when they were first received to be valued appropriately for division purposes during DM divorce mediation. This will give both parties an idea of what they’re entitled to receive in a post-divorce settlement agreement.