It depends, but in general, inherited funds are separate from the marital estate. We counsel clients who have received an inheritance to maintain the inheritance in a separately held account solely in the client’s name. Do not place the funds in a joint account with your spouse unless you desire the funds to be a portion of your marital estate.
If you use the inherited funds to purchase other assets, such as the marital home, you also risk comingling your once-separate funds with your marital estate. In the case of a marital home, although the funds were separate upon your receipt as an inheritance, they were used to purchase a marital asset: the marital home. Following the purchase, marital funds may have been used to maintain the asset through the payment of a mortgage, homeowner’s insurance, or property taxes.