At Cohen Family Law, we help Arizona families through divorce and all the financial questions that come with it. One of the most common concerns we hear is: “What happens to my inheritance if I get divorced?”
The answer depends on how the inheritance was received, managed, and whether it was kept separate from marital property. Understanding the rules can make a significant difference in protecting your financial future.
Is an Inheritance Treated as Marital Property?
Arizona follows community property law, which means that most assets and debts acquired during a marriage are considered jointly owned. Common examples include:
- The marital home and other real estate
- Income and wages earned by either spouse
- Cars, furniture, and household purchases
- Bank accounts, investments, and retirement savings
- Debts such as mortgages, credit cards, and student loans
When a couple divorces, the court divides community property equitably, aiming for a fair outcome for both spouses.
An inheritance, however, is different. If you inherit money, property, or other assets, those are generally considered separate property and belong only to you. But that protection can be lost if the inheritance is not carefully managed.
What Counts as Separate Property in Arizona?
Arizona law distinguishes between community and separate property. Separate property is not divided in a divorce. It typically includes:
- Property owned before the marriage
- Gifts made directly to one spouse
- Inheritances left specifically to one spouse
- Property outlined as separate in a prenuptial or postnuptial agreement
- Assets acquired after a divorce petition is served
This sounds simple, but in practice, it can get complicated. The key issue is commingling—when separate property is mixed with community property. For instance, depositing inherited funds into a joint account, or using them to remodel a jointly owned house, may cause the court to treat that inheritance as community property.
Can an Inheritance Lose Its Separate Status?
Yes. The way you handle an inheritance after receiving it often determines whether it remains yours alone or gets pulled into community property. Examples include:
- Joint accounts: Placing inherited funds into an account shared with your spouse may cause the money to be treated as marital property.
- Home improvements: Using inheritance money for renovations on the family home may give your spouse a claim to part of that investment.
- Mixed investments: Combining inherited funds with joint investment accounts or retirement savings makes them harder to separate later.
Once commingled, it can be difficult, and sometimes impossible, to prove which portion is still separate. That’s why careful planning and record-keeping matter.
How Can You Protect an Inheritance in Divorce?
There are practical steps you can take to reduce the risk of losing part of your inheritance in divorce:
- Keep funds separate: Open an account in your name only and avoid mixing the money with marital funds.
- Consider a trust: A properly structured trust can keep inherited assets distinct and outside the marital estate.
- Use agreements: Prenuptial and postnuptial agreements can clarify ownership and prevent disputes later.
- Maintain documentation: Save bank records, legal documents, and any paperwork showing how you received and managed the inheritance.
Taking these steps early on is the best way to preserve your rights if divorce becomes a reality.
Why Work With Cohen Family Law?
Divorce is never easy, and financial uncertainty only adds to the stress. At Cohen Family Law, we know Arizona’s property division rules inside and out. We will work with you to:
- Identify which assets qualify as community or separate property
- Protect inheritances and other assets that belong solely to you
- Draft or review agreements that safeguard your property rights
- Handle related issues such as spousal maintenance, custody, and child support
When you work with us, you will have a team that listens to your concerns and fights to protect your financial future.
Contact an Experienced Phoenix Divorce Attorney
If you’re worried about how divorce might affect your inheritance, don’t wait until things get complicated. Contact Cohen Family Law in Phoenix today to schedule a consultation. We’ll explain your options, answer your questions, and help you protect what matters most.
FAQs About Divorce and Inheritance in Arizona
Do I have to share my inheritance with my spouse in a divorce?
Not if it is kept completely separate. Inheritances are considered separate property in Arizona. However, if you mix it with marital funds, your spouse may gain a claim to part of it.
What if I used inheritance money to pay for family expenses?
If you used inherited funds for joint expenses or improvements on community property, those funds may lose their separate status and be treated as marital property.
Can I protect an inheritance I expect to receive in the future?
Yes. A prenuptial or postnuptial agreement can clarify that any future inheritance will remain your separate property.
What is the best way to keep an inheritance separate?
Keep the inheritance in your name alone, avoid mixing it with joint accounts, and maintain clear records of how it was received and used.
