When people get a significant inheritance while married, they often worry about losing it in a divorce. What happens to your inheritance when you end your marriage? The answer depends on your situation.
Generally, the assets you inherit are your separate property
In Massachusetts, the general rule is that inherited assets are separate property. This means it belongs only to the person who got it. In a divorce, these assets usually stay with the person who inherited them, as long as they keep them separate from marital property.
Could your inherited assets become marital property?
Even though inherited assets are usually separate, they can sometimes become marital property.
If you mixed your assets with marital property during your marriage, they may lose their separate status. This could happen if you deposited inherited money into a joint bank account. Commingling can also happen if you used inherited funds for marital expenses or investments, such as using inherited money to fund improvements to your home.
Additionally, if an inherited asset gains value during the marriage, a portion of that value might be marital property. For example, if both spouses worked to improve an inherited home or grow an inherited business, both spouses might have a claim to that increase in value.
Knowing Massachusetts law can help you protect your inheritance
To keep inherited assets separate, it is important to maintain clear boundaries and understand how courts handle these assets. Getting legal guidance and understanding your rights can help you manage and protect your inheritance during a divorce.