In California, separate property consists of property owned earlier than marriage, and items and inheritances obtained through the marriage. Whereas inheritances are typically thought-about separate property, they will change into commingled with neighborhood property (property acquired through the marriage) if not rigorously managed. As an example, depositing an inheritance right into a joint checking account used for family bills might rework the inheritance, or a portion thereof, into neighborhood property topic to division in a divorce. Equally, utilizing inherited funds to enhance a jointly-owned house can also create a neighborhood property curiosity within the elevated worth.
Understanding the excellence between separate and neighborhood property is essential in defending particular person monetary pursuits throughout marriage and within the occasion of divorce. Clear documentation and cautious monetary administration can forestall unintended commingling, preserving the separate property nature of an inheritance. That is notably necessary in California, a neighborhood property state the place property acquired throughout marriage are typically divided equally upon divorce. Defending inheritances as separate property ensures that these property stay below the only management of the supposed beneficiary.