When you inherit something in Texas—whether it’s cash, a family heirloom, or real estate—it usually stays your separate property. That means your spouse typically doesn’t share in it during divorce. Still, the way you handle it matters. Let’s break down what that means for you.
How Texas law treats inheritance
Texas law classifies anything you receive during marriage by “gift, devise, or descent” as separate property. That includes inheritance. Meanwhile, the law defines community property as anything either spouse acquires during the marriage, except for separate property. So by default, your inheritance belongs only to you.
Why inheritance can become community property
Texas law presumes that any property you own when your marriage ends is community property unless you can prove otherwise. If you mix your inheritance with joint assets—for example, by depositing it in a shared account—the court may treat it as community property. Keeping inherited assets separate helps you avoid that risk.
How to keep your inheritance separate
To protect your inheritance, place funds in your own account instead of a joint one. Avoid using inherited money for shared purchases or household expenses. Track how and where you use the funds to create a clear paper trail. Keep records that show the money came from inheritance. If you already mixed it with community assets, a forensic accountant can help trace what still qualifies as separate property.
How Texas treats income from separate property
Texas treats any income your inheritance earns—like rent from inherited real estate—as community income. That means the court can divide it during divorce. But the inherited asset itself still belongs to you.
Navigating mixed-use assets
If you use inherited funds to improve something you share with your spouse—like paying down the mortgage on your family home—that portion may count as community property.
Your inheritance in Texas starts as your separate property. It stays that way if you keep it apart from shared funds. Use separate accounts, avoid joint expenses, and document everything to protect what belongs to you.