A few years ago, your parents passed away and left you a significant inheritance. They wanted the money to help provide for your future. For instance, you may have been planning to use it when you decide to retire.
However, you were married when you received that inheritance, and your spouse has now asked for a divorce. They’re claiming that they are entitled to half of that inheritance because you received it during the marriage. Is this true?
Was it commingled?
This may be true, but it may not. Every situation is different.
The key thing to keep in mind is that an inheritance is often separate property when you first receive it. Even though you’re married, if your parents gave you the money directly as a gift to you alone, then it only belongs to you. You wouldn’t have to split it with your spouse during a divorce because it’s not a marital asset.
However, if the inheritance was commingled during your marriage, that may have turned it into a marital asset, meaning your spouse does have a claim to a portion of it. Commingling is a general term that refers to combining assets or mixing them together. This could be done if you stored the inheritance funds in a shared bank account, for example, or if you used the money to buy assets that you both own jointly, like a home or a business.
In some divorce cases, couples run into significant conflicts determining how assets like an inheritance should be classified and divided. If you’re in this position, take the time to carefully consider your legal options.
