Divorce may mean that you have to divide an inheritance you received from your parents with your former spouse. The key is simply whether or not that inheritance qualifies as a marital asset or a separate asset.
When you first receive an inheritance, even if you are already married, it generally qualifies as a separate asset. If your parents left the inheritance to you directly and did not name your spouse, then you are the sole owner. It is a direct gift.
In that case, you may not have to divide it with your ex during the divorce. Only marital property goes through property division.
Commingling your inheritance
However, it is very important to remember that the inheritance does not necessarily stay a separate asset. It depends on how you use it, how you store it and whether you give your spouse access to the funds.
For instance, perhaps you and your spouse also have a joint investment portfolio. If you add the inheritance to this portfolio, your spouse then has access to it, and it becomes a marital asset.
Another example is if the two of you use the money to buy something together. Say that you use the inheritance to pay off the balance of your mortgage, creating more financial freedom. If you get divorced, the house still counts as a marital asset, even though you bought it with your inheritance.
Navigating property division
As you go through a divorce, considering the status of your assets and whether or not they have been commingled is a critical step to take. An experienced divorce attorney can help you protect your rights during property division.