Dividing Property During a Divorce

Dividing property during a divorce can be one of the most stressful aspects of ending a marriage. Questions about what qualifies as marital property often heighten that stress, particularly regarding inheritances.

At Wright Family Law Group, we’ve helped countless individuals protect their wealth and assets during this challenging time. In this post, we’ll help you understand whether inheritances are considered marital property in Massachusetts and how to safeguard them if you’re facing a divorce.

Understanding Marital Property in Massachusetts

Before we discuss inheritances, it’s important to understand the concept of marital property in Massachusetts. Marital property includes assets either spouse acquires during the marriage, regardless of whose name is on the title. Some examples include:

  • Income earned by both spouses
  • Real estate purchased during the marriage
  • Jointly held savings and retirement accounts
  • Household items, vehicles, and other shared assets

The state abides by the principle of equitable distribution, which means these marital assets and debts are divided fairly, but not always equally, during a divorce.

Inheritances and Divorce in Massachusetts

Massachusetts is an equitable distribution state, but it also recognizes the concept of separate property. This means that assets a spouse receives prior to the marriage or through inheritance or gift during the marriage are generally viewed as separate and don’t need to be divided.

Inheritances can include money, real estate, stocks, jewelry, and other valuable items from a deceased family member or friend. However, for an inheritance to be considered separate property in Massachusetts, it must have been kept separate from marital funds and not used for the benefit of both spouses during the marriage.

1) Received Before the Marriage

Inheritances received before marriage are usually treated as separate property. However, protection can be compromised if the funds are mixed with marital assets, such as depositing them into a joint account or using them for shared expenses.

2) Received After Divorce Proceedings Began

Inheritances acquired after divorce proceedings are initiated are typically excluded from marital property. Timing is a critical factor here, as assets received during the marriage may be viewed differently.

3) Not Commingled

Commingling occurs when separate funds are mixed with marital assets, making it more difficult to determine what portion is separate property. Keeping your inheritance in a separate account and not using it for joint expenses may help protect its status as separate property.

Key takeaway: The way you handle inherited funds after you receive an inheritance can determine whether they remain your separate asset or become part of the marital estate and subject to division in the event of a divorce.

Inheritances and Divorce: Key Considerations

In the event of a divorce, many clients worry whether their inherited property will be subject to division. While Massachusetts typically treats inheritances as separate, protection is not automatic. The way you manage inherited funds after you receive an inheritance plays a critical role in determining whether they will be considered part of your marital property.

Generally, an inheritance remains separate property when it is kept distinct from marital finances and not used for the benefit of both spouses. By contrast, if inherited cash is deposited into a joint bank account or used toward property acquired during the marriage—such as upgrading the family home or buying a shared vehicle—those funds may be reclassified as marital and therefore subject to division.

Why Inherited Property Can Lose Its Separate Status

Courts look beyond labels to examine conduct. If inherited funds are used to pay joint expenses, reduce a shared mortgage, or invest in accounts titled to both spouses, the inheritance can be viewed as intended for the marriage. Over time, consistent commingling blurs the line between separate and marital assets.

Documentation matters. If you receive an inheritance, keep clear records tracing where the money went, how it was invested, and whether it remained segregated. Tracing can help demonstrate that an inheritance remains separate property, even if portions were converted into other forms of inherited property (for example, moving inherited cash into a brokerage account in your sole name).

Common Commingling Pitfalls

  • Depositing inherited cash into a joint bank account, even briefly.
  • Using inherited funds to improve property acquired during the marriage without a written agreement.
  • Paying routine joint expenses (utilities, childcare, vacations) from inherited accounts.

Mini Scenarios

Kept Separate: You inherit $50,000 and place it in an investment account titled only to you, never using it for joint expenses. With proper records, that inheritance generally remains separate property.

Commingled: You deposit inherited cash into a joint bank account and use it to remodel the marital home (property acquired during the marriage). Portions of the inheritance may be treated as marital and subject to division.

Protecting Your Inheritance During Divorce

1) Work With a Skilled Divorce Attorney

Dividing assets can be legally and emotionally complex, especially when inheritances are involved. A knowledgeable divorce attorney can provide critical guidance, protect your rights, and help you develop a strategy for preserving what’s yours.

2) Keep Your Inheritance Separate

  • Use a separate, individual bank or brokerage account for all inherited funds.
  • Avoid commingling funds (e.g., paying off a shared mortgage with inheritance money).
  • Maintain detailed records that trace the inheritance from receipt to current form.

The clearer the distinction between your inheritance and shared property, the stronger your case for protecting it.

3) Utilize Prenuptial or Postnuptial Agreements

A prenuptial or postnuptial agreement can define how inheritances will be treated in the event of a divorce. Many couples include provisions that designate inheritances as separate property, regardless of other circumstances.

To help ensure these agreements hold up in court, they should meet core requirements:

  • Both parties sign voluntarily.
  • Full financial disclosure is provided.
  • Terms are fair and reasonable.

If you have a prenuptial or postnuptial agreement, consult an experienced attorney to ensure its terms are enforceable and provide the protection you intend.

Important: Even when an inheritance is kept separate, appreciation attributable to joint efforts (e.g., both spouses actively managing an inherited rental) may be reviewed and, in some cases, considered in equitable distribution.

Quick FAQs

Are inheritances always excluded from property division?

No. While often separate, they can become marital if commingled or used for joint purposes, which may make them subject to division.

What should I do when I receive an inheritance during marriage?

Place the funds in your individual account, keep documentation, avoid joint use, and seek legal guidance before applying funds to marital expenses or property.

Can a prenup or postnup protect inherited property?

Yes. Clear language designating inheritances as separate property can reduce disputes in the event of a divorce.

Secure Your Financial Future With Wright Family Law Group

Dividing assets during a divorce is undoubtedly one of life’s most stressful challenges, but with the right legal support, you can protect what matters most. If you’re facing questions about whether an inheritance may be considered marital property, don’t leave your financial future to chance. Contact Wright Family Law Group today for a consultation and take the first step toward safeguarding your family’s wealth.

Disclaimer: This page provides general information and is not legal advice. Laws and outcomes vary by circumstance. Consult an attorney about your specific situation.