Onyx Law Group
July 25th, 2025
Many spouses are rightfully concerned when it comes to inheritances.
What happens to an inheritance received before or during the marriage in the event of a divorce? When does an inheritance become marital property? Can one spouse keep an inheritance separate, or must they share it with their spouse if they separate?
Family law in Canada generally considers an inheritance to be exempt when it comes to dividing assets during divorce proceedings—though the law varies from province to province. Understanding the legal framework that governs division of net family property on separation is the key to understanding what happens to an inheritance in a divorce.
When Is an Inheritance Considered Marital Property?
The growth in value of an inheritance during the relationship is considered family property and is subject to equalization in divorce proceedings. There are also situations where the inheritance itself (i.e., the original gift from the deceased person’s estate) can become family property that is subject to equal division. Some examples are:
- When inheritance money is kept in a joint bank account rather than in a separate bank account
- When one spouse gifts their inheritance to their partner
- When inheritance money is used to pay down joint debts
- When inheritance funds are used to renovate the family home
- When family property or debt is located outside British Columbia and can’t practically be divided, the court may order that excluded property, such as an inheritance, be divided to ensure a fair outcome for both spouses
In those situations, the inheritance may lose its excluded status, which means it is subject to equalization on separation.
This blog post will explore the conditions under which an inheritance can be considered marital property and how you can protect your inheritance before marriage, during your marriage, or in the event of a divorce.
If not properly handled, your valuable inheritance and any growth in its worth may have to be shared on divorce. If you’ve combined your inheritance with marital funds in a joint account or used your inheritance to buy marital assets, reclaiming it during divorce proceedings can be complex, often involving intricate court procedures. There are steps you can take to protect yourself and safeguard your inheritance, either before or during your marriage.
Onyx Law Group, Vancouver, BC
