Your parents left you an inheritance, and it’s quite substantial. Perhaps it’s enough money that you now know you can retire whenever you want, and you don’t have to worry about future financial security.
You are going through a divorce, however, and that inheritance has caused some conflicts. You believe that you should keep all of the money because your parents clearly intended to leave it to you. Your ex believes that they are entitled to half of the account because the two of you were married when you got the inheritance. What happens to it?
Separate and marital assets
Generally, an inheritance is a separate asset during a divorce case. You’re correct that your parents gave the gift directly to you, and you do still own it. You may not have to split it with your ex in the divorce because it doesn’t count as a marital asset.
However, there are things that can turn it into a marital asset. To begin with, if your parents originally gave it to you and your spouse as a couple, then your spouse may have an immediate claim. It is a marital asset because it was not a direct gift to you, but an asset that you and your spouse acquired jointly during your marriage.
Even if it was originally allotted to you, you also have to consider if it has been commingled. This can happen by mixing it with marital funds or making joint purchases—such as buying a home or a business. When an inheritance is commingled, then both people have ownership rights, and it does need to be divided.
In other words, you may be correct that your inheritance is a separate asset and you should keep 100%, but it’s not always as simple as people assume. It’s very important for you to understand all of your legal options as you work your way through this process.