Can I Protect My Inheritance In A Prenup If I Haven’t Gotten It Yet?

Yes, you can and should protect inheritance in a prenup, whether you’ve received it yet or not.

The Importance of Protecting Inheritance

Your inheritance is considered your separate property under the law – meaning if you were to get divorced, you should keep all of your separate property – it wouldn’t be up for division. Where most people get into trouble and end up having to split their inheritance with their spouse is when they commingle their inheritance with marital assets – and it’s very easy to do if you don’t have a prenup.

Paying Down a Joint Mortgage

You get $100,000 from a family member, and you decide to pay down the mortgage on the house that is in both you and your spouse’s name. You just converted your separate property into marital property.

Depositing into a Joint Account

You get your inheritance and you deposit it into a joint bank account. If you later get divorced, you might have to split that money in half.

Commingling in a Separate Account

You deposit it into a bank account in your own name, but that account has money that you’ve earned during the marriage, which is considered marital property. and even though you never put the inheritance into a joint bank account, you still commingled it and might lose it in a divorce.

Steps to Protect Your Inheritance

Avoid Joint Accounts

Never deposit it into a joint account. In fact, you’re best off creating a brand new account to hold your inheritance funds so it doesn’t touch any other money.

Draft a Prenup or Postnup

Get a prenup or a postnup so that you can be 100% certain that no matter what, the inheritance money will remain yours.