You always grew up with a significant amount of wealth, and your parents were high earners. You knew that one day they were going to leave you an inheritance that could be a life-changing amount of money. You certainly have your own professional aspirations and have been successful in your own right, but the bulk of your wealth is going to be inherited.
If you are going through a divorce and you have already received this inheritance, you may be worried about losing a percentage of that money to your ex. After all, they may claim that it counts as a marital asset since it was given to you during the marriage, and they may have expected to use that money to sustain their lifestyle. Do you have to divide it during property division?
Separate and marital assets
Often, the answer is no. Initially, when you receive the inheritance, it generally counts as a separate asset, even if you are married at the time. Your parents intended it for you, so it does not have to go through property division.
However, commingling the inheritance with other assets can change its status and make it a marital asset that does need to be split up between the two of you.
For instance, maybe you used the inheritance to purchase a home or pay other shared costs. Maybe you invested the inheritance alongside other funds that you and your spouse had jointly contributed to. Perhaps you put the inheritance into a shared bank account for safekeeping, and both you and your spouse had access to that account during the marriage.
If the inheritance was kept separate, it likely retains its status as a separate asset. But if it was commingled, it can become a marital asset, and your spouse may deserve a portion of it. Issues like this can make a high-asset divorce case very complicated, so it is critical that you understand all of your legal options as you navigate the process.
