Whether it is your child’s spouse or a future in-law, divorce can open a door to your family’s assets, especially if protections are not set up early. Many families assume that wealth passed through inheritance is automatically safe. Unfortunately, that is not always true.
Love, marriage and asset protection
Even when family relationships are strong, planning for the “what-ifs” matters. Here are ways to help keep your assets safe from future breakups without sounding cold or controlling.
- Use a trust, not a check: Instead of giving your child a large sum directly, place assets in a well-structured trust. This way, they still benefit, but the assets are legally separated from any marital property.
- Consider a discretionary trust: These types of trusts give a third party control over when and how money is distributed. Because your child does not have automatic access, those funds are less likely to be treated as shared property in a divorce.
- Keep inherited assets separate: If your child receives a gift or inheritance, it is important they do not mix it with joint marital accounts. Keeping it separate, even emotionally, can help preserve its protection.
- Plan with transparency: It may feel awkward, but open conversations about future expectations, especially around wealth, can prevent misunderstandings later. It is easier to talk about protection now than to repair damage later.
- Explore family agreements: In some cases, families choose to encourage prenuptial agreements not as a demand but as part of a thoughtful planning process. You can frame it as a mutual protection tool to help ease concerns.
Taking a proactive, respectful approach now can save your family from difficult conversations and costly consequences later.
If you are thinking about ways to secure your legacy from life’s unexpected turns, it is best to use your judgment after legal guidance. Every family is unique, and a personal approach can help you create a plan that fits just right.