When you get divorced, you and your spouse need to divide your marital assets. In some cases, this division is straightforward. Money in a bank account – which was earned during the marriage – is a marital asset, for instance, as is a family home that you both purchased together.
But what happens to an inheritance? Say your parents gave you an inheritance a few years ago, long before your divorce. Now that the marriage is ending, you’re wondering if you need to split that inheritance with your ex.
What did you do with it before the divorce?
This question really comes down to how you handled the inheritance initially. It likely started out as a separate asset, rather than a marital asset. It’s a gift from your parents to you, and you are the only person with an ownership claim. Even though you were married when you received it, the money stays in your family and does not have to be divided with your ex.
However, certain actions can commingle the inheritance, meaning you may need to divide it with your ex. This may be as simple as using it for joint expenses, such as paying the mortgage or household bills. Commingling also happens when you mix it with marital funds, such as by depositing it into a shared bank account. These steps can convert the inheritance into marital property. Once you’ve shared the inheritance with your spouse, they have a right to it, and you may have to split it during property division.
Things can become contentious. Your ex may claim they have a right to the inheritance, and you may believe they do not. When things get complicated, be sure you know what steps to take.