Transferring assets or wealth from one generation to another is a priority for most Florida families. For instance, if a person inherited assets from their parents, it may be important to them that they are able to give assets to their children and grandchildren as well. Accordingly, there are unexpected events that can upset long-term plans, and divorce may be one of them.
If one is worried about how a pending divorce will impact their assets, including shielding assets for their heirs, beneficiaries, and/or children, it is important to speak to attorneys or law firms who handle both Divorce (dissolution of marriage) as well as Estate Planning.
In certain situations, inherited assets are kept or held as separate property. Marital property refers to assets that are jointly owned, and most assets gathered during a marriage fall under this category. However, if one received an inheritance from a member of their family and it is completely in one’s name, said person may be able to retain those assets through the divorce process and then give them to their heirs, whenever they choose to do so.
However, matters can become complicated when commingling is part of the process. An example, if an individual inherited money and then deposited it into a joint account, one that they used to pay for their marital expenses such as mortgages, taxes, utilities, food, vacation, etc., it could be argued that those funds are marital property, i.e., assets open to division during a divorce.
Of course, when an inheritance is large, it could be argued that a percentage of the inheritance is marital property and a part of it is separate. While this is possible, it is important to recognize that proving assets are separate, and not subject to division, can be difficult. If a Florida resident wants to ensure their heirs will receive those funds, then one should ask about and explore the benefits of utilizing various Estate Planning tools. These tools can be used by all levels of society and not solely by the wealthy. In fact, these tools are a useful way for anyone to transfer assets to beneficiaries or heirs.
Usually in Florida, marital assets are subject to equitable distribution during a divorce. Discussing this process with one’s lawyers will assist them to fully understand the scope of their current and future financial circumstances. All assets can be analyzed, including real estate holdings, investment accounts, retirement accounts, and business interests, among others.
Once all the marital assets and debts have been reviewed, Divorce and Estate Planning lawyers can jointly walk them through what a Florida court may view as a fair division of assets. Thereafter, the subject individual can determine what their post-divorce goals may be, including establishing assets for their children, and can be the basis for the negotiation process in the subject Florida divorce.
In this regard, one must define their future financial goals in their divorce and look past the emotional daily issues and consider their important long-range plans and share them with their attorneys experienced in both the dissolution of marriage process as well as estate planning.
The foregoing is a very brief and general overview of the benefits of consulting with both a Divorce lawyer as well as an Estate Planning attorney prior to and during the divorce process in Florida.
If you have any additional Questions regarding the foregoing or have any legal issue or concern, please contact the law firm of CASERTA & SPIRITI in Miami Lakes, Florida.