Does divorce mean you have to split up your inheritance?

Your parents left you an inheritance when they passed away. It’s a substantial sum of money, perhaps in the millions. It makes up a significant percentage of your net worth.

Your spouse has now asked you for a divorce, and they claim that they should get to take half of that inheritance with them. After all, the two of you were already married when your parents passed away and you received the inheritance. Do you have to split it through property division or not?

Who was it given to?

The first question is just who received the inheritance. If your parents wrote a check to both you and your spouse as a couple, then you may both have ownership rights, meaning you have to split it up.

However, if the inheritance was given directly to you alone, then it probably does not count as a marital asset. Instead, since it was a direct gift, it’s a separate asset, and you get to keep it.

Was it commingled?

The second question to ask is whether or not that inheritance was commingled during your marriage. This just means mixing it together with other assets, and it can happen in a few different ways.

For instance, if you and your spouse have already used some of the money to make joint purchases, those purchases are marital assets that have to be divided. Likewise, if the inheritance was mixed with your other funds—perhaps you put it into your shared investment portfolio, for example—then mixing it makes it into a marital asset. But if you kept it separate the entire time, in an account that only you could access, then it remains a separate asset.

Debates over large sums of money can certainly become contentious during a divorce, so be sure you know what legal steps to take.