Regardless of the general rule that the initial basis of an inheritance is separate property, the law may not protect you if your inheritance gets deposited into a joint account you share with your spouse. In this case, the inheritance has become commingled, meaning you have chosen to share it with your spouse and converted it into marital property. This is especially the case if you use your inheritance funds to pay for joint expenses, such as household bills.
The courts may then consider the inheritance marital property, making it subject to division in a divorce case. If you want to protect your inheritance during or after marriage by ensuring it is kept separate, do not deposit it into a joint account. Keep your inheritance in a separate account that is in your name only. This will prevent commingling and the risk of converting your inheritance to marital property. If you’ve inherited real estate title it jointly with your spouse, that property will also lose its separate nature.