Just Because You Inherited It Doesn’t Mean You Don’t Need a Prenup

I recently heard a story about someone who was getting married and had received an inheritance. Someone told them, “You don’t need a prenup. It’s inherited, so it’s yours.” It sounds simple. But family law rarely is.

An inheritance may be considered separate property, but that doesn’t necessarily mean it will always remain separate throughout a marriage. What you do with those funds or assets can matter.

For example, if inherited money is deposited into a joint account, used to purchase or improve a jointly owned home, or mixed with marital funds, it can become much more complicated to determine what remains separate.

If you have an inheritance and are getting married, consider:

Keep it separate. When appropriate, keep inherited funds in an account in your name rather than unnecessarily combining them with marital funds. Be mindful of what you deposit into that account as well, and avoid depositing marital income or other marital funds into an account you are trying to keep separate.

Keep documentation. Maintain records showing where the inheritance came from, when you received it, and how the funds or property were handled.

Think before you invest it. Using inherited funds toward a home or other property that you and your spouse own together can create additional questions about how that asset is treated.

Ask before you act. Don’t wait until you’re getting divorced to ask how your inheritance may be treated. Talk to a family law attorney before making major decisions with inherited assets.

Consider a prenup. A prenuptial agreement can give couples an opportunity to clearly establish how certain premarital and inherited assets will be treated during the marriage and if the marriage ends.

A prenup isn’t an indication that you expect your marriage to fail. Sometimes, it’s simply part of being financially informed and having difficult conversations before they become difficult decisions.

Just because you inherited it doesn’t mean you should assume it’s untouchable.

Educate yourself, ask questions, and get advice from a family law attorney before you say “I do.”