How Do I Keep Money Separate?

In Pennsylvania, marital property is generally subject to division during a divorce, but there are ways to protect certain assets by ensuring they remain classified as separate property. By keeping inherited funds in a separate account, maintaining detailed records, and seeking legal advice from a Bucks County family attorney, you can safeguard your financial future.

Why Should I Protect My Assets?

There are several reasons why you may want to keep certain funds separate from marital property. One of the most common is inheritance. Inherited assets are typically considered separate property under Pennsylvania law, but only if they are kept apart from joint accounts and not used for marital expenses.

Other reasons to keep money separate might include the desire to safeguard assets acquired before the marriage or funds from an injury claim. Property owned by one spouse before the marriage is often considered separate, but this can change if the asset is mixed with marital funds. Similarly, compensation for personal injury claims can be deemed separate property if not commingled with shared accounts.

There are specific steps you can take to ensure some of your assets are not melded in with marital property. This involves more than just having an account in your name, you need to avoid commingling funds.

• Use separate accounts. The best way to keep money separate is to deposit it in an account that is solely in your name and never use it for joint expenses. If you mix inherited funds with joint marital funds or use them to pay for shared household bills, they may lose their classification as separate property.
• Avoid using inheritances for marital expenses. If you use money from an inheritance to purchase something for both you and your spouse, such as a family home or vacation property, the asset can be considered marital property, making it subject to division. It’s crucial to keep inherited assets in their original form or use them for personal, non-marital purchases.
• Keep records. Document the origin of your separate funds clearly. If an inheritance is received, keep paperwork such as wills, trust documents, or financial records that show how and when the funds were received. These documents will be invaluable if you need to prove the money’s separate status during a divorce.

When you have individual accounts and avoid the use of those funds for shared expenses, you reduce the likelihood of the assets being subject to division should a marriage come to an end.

Who Can Answer My Asset Questions?

There are professionals who can help if you are looking for solutions on how to keep clear boundaries between marital and separate assets. A Bucks County family attorney has the skills to navigate the complexities of Pennsylvania’s marital property laws, ensuring that you take the right steps to protect your separate assets and secure your financial stability.

How are you handling funds you have recently inherited? Whether you are planning to separate or not, the legal team at Kevin L. Hand, P.C. is available to answer your questions about marital funds. Call 215-968-6602 for a confidential consultation.