If you receive an inheritance while you are married, you may be tempted to commingle it. There are a few different ways that you can do this, as commingling just means mixing it together with other marital assets. Examples include:
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Jointly buying something, such as a house
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Using the inheritance to pay off shared debts or bills
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Investing the inheritance in a shared investment portfolio
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Storing the inheritance in a joint bank account that you both have access to
If you do this, be aware that commingling the inheritance can cause it to change status. When you first receive it, even though you are already married, it likely qualifies as a separate inheritance and a direct gift to you as an individual. Once it has been commingled, it then qualifies as a marital asset.
Altering property division
If you stay married, this distinction may not matter. But if you get divorced, it can be incredibly significant.
After all, couples generally get to keep separate assets, so you would retain the entire inheritance if your spouse filed for divorce. But couples do have to divide marital assets. This means you may lose a portion of your parents’ inheritance to your ex-spouse if your marriage ends. You would have to split up those funds along with other marital assets, such as your income from the marriage, benefits or commissions you earned and major assets that the two of you bought or acquired together.
Complex divorce cases
Navigating property division can certainly make a divorce complex, especially when handling inheritances and other high-value assets. It can help to work with an experienced attorney as you explore your legal options.