Inheritance

Who Gets the Inheritance in a Divorce?

In most jurisdictions, an inheritance received by one spouse is considered separate property, meaning it generally belongs solely to the spouse who received it and is not subject to equitable distribution during divorce. Courts make this distinction because inheritances are typically intended for an individual beneficiary—not the marital unit as a whole.

However, preserving an inheritance as separate property requires careful handling. If inherited funds or assets are mixed—or commingled—with marital property, the line between separate and marital ownership can become blurred. Commingling may cause some or all of the inherited property to be treated as marital property and therefore subject to division.

Some common examples of commingling include:

Depositing inherited funds into a joint bank account
Using inherited money to pay for marital expenses
Titrating inherited property into both spouses’ names
Using inherited funds to improve a marital home or other joint asset
Mixing inherited investments with marital investment accounts

Once commingling occurs, the burden often falls on the spouse asserting separate ownership to trace the inherited funds. Without sufficient financial records or clear documentation, courts may classify the inheritance—or its growth during the marriage—as part of the marital estate.

For this reason, keeping your inheritance physically and financially separate from marital assets is the most effective way to ensure it remains yours during a divorce.

Why Skilled Legal Representation Matters

If you are a high-net-worth individual considering divorce, the protection of your separate property—including inheritances—is critical. These cases often require complex financial analysis, tracing of funds, valuation of assets, and legal arguments supported by evidence and expert testimony.

Stange Law Firm, PC understands the complexities involved in identifying, protecting, and preserving inheritance rights. Our attorneys have experience in high-asset divorce cases where inherited property plays a significant role in the overall financial picture. We work to ensure that courts fully understand the origin of your inheritance, how it was used during the marriage, and why it should remain classified as your separate property.

Choosing the right attorney is one of the most important decisions you will make when preparing for divorce. Ending a marriage is rarely simple or straightforward, and the outcome of your case will affect your financial security for years to come. At Stange Law Firm, PC, we are committed to protecting your financial interests, property rights, and—where applicable—your parenting rights throughout the process.

What If Your Spouse’s Inheritance Became Part of the Marital Property?

While courts typically strive to keep inheritances separate, the non-inheriting spouse may still have the ability to claim a portion of the inheritance under certain circumstances. If you are the non-titled spouse, you may be able to demonstrate that the inherited assets were:

Commingled with marital funds or used for marital purposes
Transmuted into marital property by being retitled or reinvested jointly
Actively appreciated due to marital contributions or shared efforts
Used to benefit the marriage or family in a significant, measurable way

In these cases, the non-inheriting spouse may have a valid claim to a portion of the inherited property, as well as to the increased value that occurred during the marriage.

For example, if inherited money was used to renovate a jointly owned home—resulting in a substantial increase in equity—the non-inheriting spouse may argue that part of the increased value is marital. Courts may also allow distribution of the appreciated portion if marital labor, financial investment, or both contributed to the asset’s growth.

Transmutation principles may apply as well. If inherited funds were intentionally converted into joint property, or if actions clearly indicated an intent to share the inheritance, those assets may be treated as marital property.

Navigating Inheritance Issues With Confidence

Determining whether inheritance funds are separate or marital property requires a careful legal analysis, detailed financial records, and sometimes the involvement of forensic accountants or valuation experts. Whether you are trying to protect your inheritance or assert a claim to your spouse’s inherited assets, Stange Law Firm, PC provides seasoned representation to guide you through the process.

Our attorneys work diligently to build a compelling case for you—whether through negotiation, mediation, or litigation—aimed at securing the most favorable outcome possible.