Skip to main content
(866) 465-5395 Schedule a Consultation (866) 465-5395 Schedule a Consultation

What Happens to Inherited Business Interests During Divorce?

| |

Divorce involves the splitting of assets. Assets are generally broken down into one of two categories: marital or nonmarital, also referred to as separate. Marital assets are subject to split while assets that are deemed separate remain the property of the owning spouse.

Keeping assets separate can be difficult. As such, each separate asset generally needs evidence to support the contention that it is, in fact, separate and not subject to division during divorce.

This piece delves into the issue of business interests – specifically focusing on those that are given to a spouse by way of inheritance.

How can I ensure my business interest qualifies as an inheritance? The classification as an inheritance is important because inheritance is generally deemed separate property. In most cases, as noted in a recent piece by The Legal Intelligence, the spouse claiming that the business interest was an inheritance bears the burden of proof. This means this spouse must establish that the interest was an inheritance.

What can I do to keep my business interest as separate property? The most important step to help better ensure that this interest qualifies as separate property is to keep it separate.

That may sound like simple and obvious advice, but the reality can be a bit more complicated. Three tips to help better ensure that separation is clear include:

  • The power of a name. Make sure the business interest is clearly in one spouse’s name. Make sure that the named owner is not vague.
  • Keep copies of original documentation. Keep a copy of the document that resulted in the transfer of the business asset. In the case of an inheritance, this generally means keeping a copy of the Will that resulted in the transfer.
  • Full separation. Keep the original asset separate. Set up an account under the owning spouse’s name to avoid mingling this asset with marital property. In addition to keeping the original interest itself separate, it is often wise in many cases to keep income derived from this interest separate as well.

These steps can help to establish that the business interest is nonmarital property, better ensuring that it does not become subject to division during divorce.

It is important to note that business interests are just one of the many legal issues that you may encounter when going through a divorce. As such, it is wise to contact a property division attorney to help better ensure that your interests are protected.

Client Testimonials

Here's what our clients have to say about working with us. Please note, results may vary based on individual circumstances.

Melinda Previtera, Esq. came highly recommended to our family. Her knowledge base, professionalism, and compassion paved the way for a successful outcome. Melinda is efficient, detailed, and informative. She helps manage expectations, and postures her client for a fair and equitable result. We are happy to recommend Melinda!

Jennifer A.

My experience was very good. Everyone was professional and attentive to my needs, keeping me updated every step of the way. I couldn’t ask for a better result, highly recommended.

David R.

My marriage life has been a hell for me for the past four years until I decided to put an end to what has to be ended. Choosing a lawyer was another additional stressful part of the long process. I’m so glad that I’ve found the right one for me at Petrelli Previtera. Life isn’t always fair, but at least having her in my corner, felt even better. I couldn’t recommend her highly enough!

Caitlin B.

Serving Clients at the Following Locations

Bethesda4800 Hampden Lane, Suite 200 Bethesda MD 20814(301) 234-7409view details
Maryland5425 Wisconsin Ave Chevy Chase, MD 20815(301) 889-8085view details
ChicagoTwo Prudential Plaza 180 North Stetson Suite 3500 Chicago, IL 60601(312) 252-2085view details
Schaumburg1750 E. Golf Rd, Suite 382 Schaumburg, IL 60173(630) 491-9670view details
Texas500 W 2nd St Suite 1900 Austin, TX 78701(512) 883-1684view details
Washington DC1717 K Street NW, Suite 900 Washington DC 20006(202) 519-0366view details
Denver7900 E. Union Ave. Suite 1100, Denver, CO 80237(720) 821-6440view details
Princeton475 Wall St, Suite 214, Princeton, NJ 08540 Meeting Location: By Appointment Only (609) 917 9560 view details
Linwood210 New Road #15 Linwood, NJ 08221 Meeting Location: By Appointment Only (609) 375-0351 view details
Parsippany8 Campus Dr, Parsippany, NJ 07054 Meeting Location: By Appointment Only (973) 310-5320 view details
Philadelphia1845 Walnut Street 19th Floor Philadelphia, PA 19103(215) 523-6900view details
Montgomery County516 DeKalb Street Suite C Norristown, PA 19401(610) 924-2870view details
Doylestown123 N Broad Street, Doylestown, PA 18901(267) 938-4480view details
Abington1147 Easton Road, Abington PA 19001(610) 890-4833view details
West Chester203 W. Chestnut St., Suite 204
West Chester, PA. 19380
(610) 431-4012view details
schedule a consultation Today
Contact Us Fill out the form or call us today (866) 465-5395