With an inheritance comes mixed emotions. You miss the person who has passed, but appreciate that they remembered you in their will.
If you were the designated beneficiary, are you required to share that money with your spouse? What happens if you divorce? Will the court stipulate that you give your ex-partner a portion of your inheritance?
Division of assets in Texas
Texas is one of nine community property states, which means any assets and debts acquired during the marriage are divided equally. This includes income, real estate, vehicles, savings accounts, retirement investments and loans.
Separate property is viewed differently and is considered to be owned by the spouse who brought it into the marriage, such as:
- Property owned before the marriage
- Assets designated as separate in a prenuptial agreement
- Inheritances given to one spouse
However, there always seem to be exceptions to every rule. There are situations that could lead to an inheritance being treated as community property:
- The inherited funds are mixed with community property, such as by depositing the money into a joint checking account, using the funds for shared household expenses or using both inherited and marital funds for renovations on the house
- You intentionally shared the benefits of your inheritance with your spouse. For example, adding their name to the deed of inherited real estate
- You don’t have any records or a paper trail proving the inherited funds belong solely to you.
You can protect your inheritance and ensure it remains separate property by depositing it into a bank account that’s only in your name. You will also want to maintain records that can trace your inheritance to the source.
Even though you’re already married and can’t get a premarital agreement, you can have a postnuptial agreement that explicitly states your inheritance remains yours in the event of a divorce.