Protecting Your Inheritance

    In theory, an inheritance you received from a loved one should be untouchable in divorce. But what you do with this asset can affect how it’s distributed when the marriage ends.

    Here are some tips to protect a gift or inheritance during marriage and after divorce.

    • Consider a pre- or post-nuptial agreement to specify that your inheritance will be treated as separate property, regardless of future circumstances.
    • Do not spend inheritance funds on marital expenses or this may convert these assets to community property, which is divisible in divorce.
    • Avoid commingling financial gifts/inheritances with shared property; instead, store them in a separate account solely in your name.

    Consult a CDFA to learn more about the complexities of inheritance in divorce. They can help you preserve individual assets and navigate other financial planning issues that arise when couples split.

    Revising Your Estate Plan After Divorce

    With a change in marital status comes important decisions about your beneficiaries and your estate plan. These details may not seem all that urgent in the midst of divorce, but no one knows what the future holds. It’s essential to prepare for the unexpected.

    Here are some things to consider when it comes to estate planning and divorce:

    • Power of Attorney: If your ex-spouse is your POA, you’ll need to update your documents if you don’t want them making decisions about your finances or medical care.
    • Beneficiaries: Divorce does not necessarily override your beneficiaries. If you become incapacitated or pass away before updating your beneficiaries on these accounts, your ex may receive your personal investments, retirement plans, and life insurance.
    • Children: If you have concerns about your ex’s ability to manage your child’s assets, consider naming a third-party guardian to oversee your estate or secure these funds in a trust until the child reaches adulthood.

    Generally, it’s best to address these issues and update your estate plan before the divorce is finalized. Making changes that violate your divorce agreement can lead to further conflict and time-consuming legal battles that only prolong your divorce.

    How a CDFA Can Help

    A CDFA has training and experience in the unique financial implications of divorce. The support and guidance of a CDFA can potentially help you and your ex arrive at a peaceful and fair resolution. Contact EP Wealth to locate a divorce financial planning advisor near you.

    DISCLOSURES

    EP Wealth Advisors (“EPWA”) makes no representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information presented. All expressions of option are subject to change without notice.

    EPWA is not in the business of providing legal services or advice. Always consult your tax advisor and/or attorney regarding your specific situation.

    The Certified Divorce Financial Analyst (“CDFA®”) that are employed by EP Wealth Advisors, LLC are not practicing attorney, accountant, tax professional, or legal expert. All assessments and subsequent recommendations limited and are performed exclusively under the guise of financial planning. An attorney must be retained in order to professional and accurately assess legal options and/or to provide counsel. We also recommend consulting a CPA, accountant, or tax professional.

    Hiring or working with a CDFA® does not guarantee or ensure that a client or prospective client will experience encouraging or favorable results.

    Information presented is general in nature and should not be viewed as a comprehensive analysis of the topics discussed. It is intended to serve as a tool containing general information that should assist you in the development of subsequent discussions. Content does not involve the rendering of personalized investment, tax, or legal advice nor is it intended to supplement professional individualized advice by the appropriate professional(s).

    The decision to work with a CDFA® professional will differ amongst clients and depend on individual circumstances of each respective client. There is no guarantee or warrantee that the services offered by EP Wealth Advisors, LLC and/or a CDFA® will satisfy your divorce service needs. Services offered by other professionals may align more to your specific needs.

    Information presented is general in nature and should be viewed as a comprehensive analysis of the topics discussed. It is intended to serve as a tool containing general information that should assist you in the development of subsequent discussions. Content does not involve the reding of personalized investment advice or is intended to supplement professions individualized advice.

    As the author of this piece, EP Wealth Advisors, LLC (“EPWA”) has tailored the messaging of this article to align with the categories, services, qualifications, capabilities and services that it offers and can service. It is intended to serve as a tool containing general information that should assist you in the development of subsequent discussions with the appropriate professionals. EPWA makes no representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information presented. All expressions of opinion by the author are subject to change without notice.

    EP Wealth Advisors, LLC. Is registered as an investment advisor with the SEC and only transacts business in state in where is properly registered or is excluded or exempted from registration requirements. SEC registration does not constitute an endorsement of the firm by the commission, nor does it indicate that the advisor has attained a particular level of sill or ability.

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