Divorce is already difficult, but it can feel even more complicated when inheritances or gifts are involved. Many people worry about whether the money, property, or assets they received from family will have to be divided from their former spouse.
The good news is that Alberta law treats inheritances and gifts differently from other marital property–but protecting them isn’t always automatic. At Verhaeghe Law, our Edmonton divorce lawyers help clients safeguard what is rightfully theirs. If you’re concerned about protecting an inheritance or gift in your divorce, reach out to us today for guidance.
How Alberta Law Treats Inheritances and Gifts
Under Alberta’s Matrimonial Property Act, most property gained during a marriage is divided between spouses. However, certain property, such as inheritances or gifts received by one spouse, may be considered “exempt property.”
This means it doesn’t have to be shared in the divorce. However, there is usually an important qualification: the inheritance or gift must usually be kept separate from joint assets. If it’s mixed with marital property in any way, it may lose its exempt status.
Practical Tips for Protecting Inheritances and Gifts in Alberta
Here are a few steps that can help you keep your inheritance or gifts protected:
- Keep it Separate: If you receive money, put it in an account in your name only, not a joint account.
- Avoid Using it for Joint Expenses: Once inheritance money is used to pay bills, mortgages, or joint purchases, it can become difficult to claim as exempt.
- Keep Records: Hold on to documentation that clearly shows where the money or property came from and that it was meant for you.
- Consider a Marriage or Cohabitation Agreement: These legal agreements can set out how gifts or inheritances will be treated if your relationship ends.
- Get Legal Advice Early: A lawyer can help you structure things in a way that protects your assets before problems arise.
When Inheritances Might Get Divided
Even though inheritances and gifts can be exempt, they may still be divided in certain situations:
- If the asset has been combined with joint property, such as using inheritance money to renovate a shared home.
- If the asset has increased in value during the marriage, the growth in value may sometimes be subject to division.
- And more.
This is why careful planning and clear documentation are so important. By consulting with a family lawyer prior to entering into a common law relationship or marriage, you can discuss how best to keep your inheritances and gifts protected.
Have You Received Gifts or Inheritances During Your Relationship? Contact Verhaeghe Law Today
Divorce can be overwhelming, but knowing how to protect your inheritance or gifts can give you peace of mind and prevent unnecessary disputes. Keeping these assets separate and documented can make all the difference.
At Verhaeghe Law, our Edmonton divorce lawyers can help you understand your rights and create a plan to safeguard your assets. Contact us today for a confidential consultation.