When your parents passed away, they left you a significant inheritance. It may be worth millions of dollars. Even if you are still working and generating your own income, this money can give you a safety net. It may be part of your retirement plan.
However, you and your spouse have now decided to get a divorce. Does that inheritance count as a marital asset, meaning that the two of you have to split it up? Or is the inheritance a separate asset, meaning that you get to keep it and a portion of your parents’ money will not simply go to your ex?
An inheritance usually starts as a separate asset
Typically, when you receive an inheritance, it is viewed as a gift directly to you. You own it exclusively, and your spouse does not have a right to it. This means it is a separate asset.
If you kept the money to yourself during the marriage, it likely retains that status. You would get to keep the full amount after the divorce, with none of the money going to your spouse.
If you commingle the money, however, then your spouse may claim that they have a right to some of it because it is now a marital asset. Commingling can take many forms, such as mixing the money together with other marital funds or investments, depositing the money in a shared bank account or simply using the inheritance to make joint purchases. If you bought a home or a small business using the inheritance, but you did so jointly with your spouse, the asset you purchased is a marital asset rather than a separate asset.
Your legal rights
As you can imagine, couples do not always agree on the status of an inheritance or how it should be divided. With so much money on the line, it is critical that you understand all of your legal rights. Having experienced legal guidance can help.
