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Protecting inherited wealth in high-asset Maryland divorces

Some people assume that Maryland law automatically protects inherited wealth during a divorce, but that is not always the case. Without careful planning, an inheritance can become part of the marital assets and face division. Getting the facts may help Maryland residents keep what was originally intended for them.

How Maryland law treats inherited wealth

Maryland law considers most assets a couple acquires during a marriage to be marital property. In contrast, the state typically treats inherited wealth as separate property, meaning it belongs only to the person who received it. However, this protection is not automatic if the inheritance mixes with marital assets. 

For example, if someone deposits inherited money into a joint bank account or uses it to improve a shared home, it may lose its separate status. Keeping inherited wealth separate from marital property is important for protecting it in a divorce.

Ways to protect an inheritance

One of the best ways to protect inherited wealth is to keep it in a separate account. Avoid mixing it with shared funds or using it for joint expenses. Keeping clear records of how the inheritor uses it can also help prove that it remains separate property. Another option is to create a prenuptial or postnuptial agreement that states the inheritance will remain with the original owner in case of divorce.

Those who have already mixed an inheritance with marital assets may still have options. Tracing the money back to its source with financial records can help show the original intent for it to be separate property. This can be a complicated process, but it may prevent the inheritance from undergoing division in a divorce.

Protecting inherited wealth in a Maryland divorce requires careful planning. Decisive action can prevent financial loss and provide peace of mind.

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