Inherited money and divorce

[Anonymous]

Hello,

My parents have some money and want to put it in my and my sister's name. We both are married. Bank account would be in my and my sister's name only. IF one of us divorces, would our husbands be eligible /entitled to any of the money from our parents?
Money will be put in the account by parents and can be used in emergencies while parents are still around.

[Anonymous]

No it can't be taken in a divorce if it's an inheritance and you alway keep it in a separate account from your DH. Not sure about the kaw if they are still alive, as that's not an inheritance.

[Anonymous]

Depends on the state. General rule is keep it separate and don't use it for anything joint.

[Anonymous]

Anonymous wrote:Depends on the state. General rule is keep it separate and don't use it for anything joint.

Virginia. We will be able to use the money for either emergencies or large payments. Say my sister finally buys house (they can afford monthly payments but do not have downpayment). If she uses money for downpayment, and hosue in both names, at divorce they will have to split proceeds 50-50?

[Anonymous]

If it's put in your name while they are alive, it's not an inheritance, it's a gift. It wouldn't be treated as a seperate asset like an inheritance would, because it's not one.

What is your parents goal here? How much money? There are probably better ways to do whatever it is they are trying to do.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Depends on the state. General rule is keep it separate and don't use it for anything joint.

Virginia. We will be able to use the money for either emergencies or large payments. Say my sister finally buys house (they can afford monthly payments but do not have downpayment). If she uses money for downpayment, and hosue in both names, at divorce they will have to split proceeds 50-50?

Most likely, yes.

[Anonymous]

Maybe the parents can create a trust that pays out in emergencies but otherwise only passes at inheritance? just a guess.

[Anonymous]

OP here. What if they put the money into account, we will be using but not for joint purposes (say by own cars or some other personal purpose). Then divorce, will husband be able to find and claim that money we hold in the account jointly with her?

[Anonymous]

You have to be clear in your head the difference between and inheritance and a gift.

It's not an inheritance until your parents die. So if it's put in a joint account, it's a gift.

So the rules about inherited money not being joint money DO NOT APPLY.

[Anonymous]

Anonymous wrote:You have to be clear in your head the difference between and inheritance and a gift.

It's not an inheritance until your parents die. So if it's put in a joint account, it's a gift.

So the rules about inherited money not being joint money DO NOT APPLY.

Ok, let it be gift. What are rules in divorce about gift given to child by alive parents and her divorcing husband?

[Anonymous]

Money given to one spouse during the marriage is fair game in a divorce. The exception is an inheritance (money distributed from an estate after someone dies) where the money is held separately in an individual account throughout the marriage, not commingled with joint assets.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You have to be clear in your head the difference between and inheritance and a gift.

It's not an inheritance until your parents die. So if it's put in a joint account, it's a gift.

So the rules about inherited money not being joint money DO NOT APPLY.

Ok, let it be gift. What are rules in divorce about gift given to child by alive parents and her divorcing husband?

It's a joint asset to be split.

[Anonymous]

Is your marriage or your sisters marriage at risk right now?

[Anonymous]

Anonymous wrote:Money given to one spouse during the marriage is fair game in a divorce. The exception is an inheritance (money distributed from an estate after someone dies) where the money is held separately in an individual account throughout the marriage, not commingled with joint assets.

so just to clarify - money given to one spouse during marriage will always be considered up to division after divorce even if that money always held separately?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Money given to one spouse during the marriage is fair game in a divorce. The exception is an inheritance (money distributed from an estate after someone dies) where the money is held separately in an individual account throughout the marriage, not commingled with joint assets.

so just to clarify - money given to one spouse during marriage will always be considered up to division after divorce even if that money always held separately?

Typically yes, but if this is a big concern, you should speak with a lawyer for real advice. There are things that can be done with trusts and such to protect the assets. How much money is this? If divorce risk is low, and it's not a huge amount of money, it may not be worth it to create a trust or write-up a post-nup.