Why an inheritance usually starts as yours
In New York, as in many states, property you inherit is generally treated as separate property even when it arrives during the marriage. That starting point can shift. When inherited funds go into a joint account, pay down a mortgage on a home titled to both spouses, or blend with marital savings until they can no longer be traced, part or all of the value may be treated as marital. Growth in an inherited asset can also become marital to the extent it came from the other spouse's contributions or efforts rather than from the market. A few states take a broader approach and let courts reach inherited property in some circumstances, which is one more reason the state matters.
Tracing the path of the money
The spouse claiming separate property usually carries the burden of showing where it came from and where it went. Helpful records include the will or trust, estate accountings, the check or wire that delivered the funds, and statements for every account the money passed through. If inherited money went into a house, the closing statement and deed show how title was taken and whose funds paid for what. Gaps are common, especially with older inheritances, and banks do not keep statements forever, so request what you can sooner rather than later. An inheritance you expect from a living relative raises different questions and is worth mentioning separately.
Weighing the claim before the case grows
At the outset we look at how the inheritance was received, how it has been held, and whether the tracing is strong or patchy. That review helps decide whether to press a separate property claim in full, compromise on a portion, or offset it against other assets. We also ask whether a prenuptial agreement addresses inheritances, because a valid agreement can override the default rules. If you are still receiving distributions from an estate or trust, we discuss how to hold them while the divorce is pending so their separate character is not blurred further. Clean records tend to shorten this part of a case considerably.
