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Planning—Other / Asking for a friend - Inheritance & marriage
Nov 20, 2021
Asking for a friend - Inheritance & marriage
My best friend just got married and her new hubbie is great. Very understanding and a standup kinda guy. He doesn't have a malicious bone in his body. She did get some money from an insurance payout recently and is not sure what to do with it. They have all their accounts already comingled. She can just add this lump to that pile (and it's about $100,000) but is also thinking to open a separate brokerage account in just her name. I'm telling her to put it in her name because if their marriage is healthy he should understand and she's already comingled everything. She's on the fence and hoping someone here can shed some additional light on this that she (or I) aren't considering? They are both in their late 20s and this payout is more than they make combined in a year. Thanks a bunch!
Replies (5)
Nov 21, 2021
@Lauren604, the best I can come up with is that it's her separate property. By that I mean that the payout is in her name specifically. If your friend hasn't had financial discussions with her new spouse so they can be on the same page and set expectations, they should like now. Your friend shouldn't comingle it just because they are married and it's a difficult discussion. You also just never know how relationships end up so it's really to her benefit to keep it separate.
Nov 21, 2021
@Samantha239, That helps to call out separate property. Thanks.
Nov 21, 2021
@Lauren604, she needs to have a sit-down talk about finances with him if she hasn't already! If their $ is comingled already it's going to be weird to talk about having this 1 account separate. It could very well lead to issues. Best if they can hash things out together and get aligned on how they would treat different events and potential payouts. Not easy to have that discussion. But I totally agree that she should keep it separate.
Nov 21, 2021
@Shari209, For sure!
Nov 21, 2021
@Lauren604, you bet!