Alimony And Inheritance
We are on the verge of something called the “Great Wealth Transfer.” This is when the Baby Boomer generation passes away and leaves behind their $68-trillion wealth to the Millennials. Sure: Some Baby Boomers will have squandered or lost all of their wealth by the time they leave this Earth. But others have amassed a considerable fortune – and this means that there’s a high chance that modern divorcing spouses will be dealing with inheritance as they navigate the end of their marriages. But how exactly does inheritance affect divorce? Let’s find out:
Inheritance is Separate Property
Unless it has been commingled in some way, inheritance is separate property in a divorce. This means that these funds cannot be divided in the equitable distribution process. The logic is that your loved ones didn’t leave behind half of their money to your ex – they left it to you specifically. In other words, estate planning law trumps divorce law.
How Does Inheritance Affect Alimony?
That being said, inheritance can still affect your divorce. This is because courts may consider inheritance when calculating support payments – including both child support and spousal support. Think of it like this:
If your ex inherits $4 million from their parents and you’re earning $75,000 per year, does it really make sense for you to pay 25% of your earnings in alimony? That clearly wouldn’t be fair, and the courts may lower or eliminate your alimony payments entirely in this situation. Of course, it all depends on the assets and income of both spouses. All factors need to be taken into account to create a fair alimony agreement.
But what if you receive $4 million as the paying spouse in an alimony agreement? In this situation, you might be required to pay even more than usual to your spouse – even if your income remains the same.
Inheritance Isn’t Always Straightforward
Inheritance can be handled in a wide range of different ways. For example, some people put their funds in trusts. These trusts may only distribute a small amount of cash each month to beneficiaries. This strategy prevents beneficiaries from blowing their money too quickly. But if your ex is receiving these kinds of distributions, it might mean that your alimony payments will continue – even if the whole sum of the inheritance numbers in the millions. Spouses may also invest their inheritance in dividend-paying stocks or other investments that provide regular payments, and this might “count” as income in the eyes of the courts.
Where Can I Find a Qualified, Experienced Divorce Attorney in Orlando?
If you’ve been searching for a qualified, experienced Orlando divorce attorney, look no further than Steve Marsee, P.A. We know that navigating divorce isn’t always easy – especially when you’re dealing with additional factors like alimony and inheritance. With our help, you can approach these issues with confidence as you secure your financial security. Book your consultation today to get started.