In many cases, an inheritance is considered a separate asset, meaning that it does not go through property division and you do not have to split it with your ex during a divorce. Other separate assets may include gifts that were given directly to you during the marriage or property that you purchased before getting married.
That being said, there are situations in which an inheritance may end up being divided. It is important to understand how this works during the property division process, and it often depends on whether the inheritance was commingled.
What is commingling?
Commingling assets means mixing them together in a way that gives both spouses access to them. One example would be placing the inheritance into an investment portfolio that you both share or depositing it into a joint bank account.
If you keep the inheritance separate after receiving it, it generally remains an asset that only belongs to you. Your spouse may have no claim to it because it was given directly to you by your parents or another relative.
But if you place it into an account your spouse can access, they may later argue that it became a marital asset. Both of you may have benefited from it during the marriage, and they may claim that this shared use should continue during property division.
Another example is when inherited money is used to purchase something jointly. Rather than keeping the inheritance separate, perhaps the two of you used it to buy a family home together. If you later divorce, it may be difficult to argue that the home is still a separate asset. Even though the inheritance funded the purchase, the home itself may now qualify as marital property.
Addressing complicated property division
Commingling can significantly complicate the property division process, especially when spouses disagree about the status of valuable assets. As you move through the divorce process, it is important to understand exactly what legal steps to take to protect your interests.