Divorce raises tough financial questions, especially around money received through inheritance. Texas law treats inherited money differently than other types of assets. When you understand how it works, you can take steps to protect what belongs to you.
How Texas defines property types
Texas follows community property law. Most assets acquired during marriage belong to both spouses equally. However, the law treats inherited money as separate property. If you receive the inheritance in your name only and avoid mixing it with shared funds, you retain full ownership.
Issues often come up when you deposit inherited money into joint accounts. Using those funds for shared expenses or combining them with marital assets can shift ownership. This process, called commingling, makes proving ownership more difficult.
How to keep inherited funds separate
To protect inherited money, store it in a separate account. Avoid using it for joint purchases, household bills, or shared investments. Keep clear records showing when you received the money and how you handled it. Detailed documentation gives you the strongest support if anyone challenges your claim.
You can also create a marital property agreement. A written agreement allows both spouses to designate specific assets as separate. That can help avoid confusion or disputes later on.
When inherited money gets shared
If you don’t keep the money separate, the court may classify it as community property. This often happens when someone uses inherited funds to buy a family home, pay off joint debts, or support household expenses. The court can divide those funds as part of the marital estate.
Judges examine your intent, how you used the money, and any documentation you provide. If your actions show that you meant to share the inheritance, the court will likely treat it as shared property.
Protect what belongs to you
Think long-term when handling inherited money during marriage. Decisions you make early on—like where to deposit it or how to spend it—can impact how a court views that money later. By treating inherited funds with care from the start, you set yourself up for fewer complications if divorce happens.
