Don’t Trust Your Son-In-Law?

Most parents don’t openly express that they aren’t thrilled about their adult children’s marital decisions.  That said, with divorce rates exceeding 50%, many families do consider the potential of their child’s marriage not working out.

A common question I get is “what happens if I leave money to my daughter and then she gets a divorce?”

The answer to this question depends on a lot of facts.  How long is the marriage?  What did she do with the money after she inherited it?  Did she spend it on the joint house?  Did she pay off joint debts?  The list goes on.

There is a way to avoid these questions altogether.  Instead of leaving your child an outright inheritance, you may consider leaving the money to a trust that can benefit your child.  In this fashion you can allow your child access to the funds without subjecting the money to the potential future divorce.

Hopefully her marriage works just fine.  But if it doesn’t, do you want to expose your life savings to the divorce?  If not, consider attending an upcoming workshop.