The best thing you can do to protect your inheritance is to open a new bank account and have the inheritance paid into that account.
No other transfers should be made into the account to ensure there is no intermingling with any relationship property funds, and it is important to be aware that any money you transfer out of that account or spend could lose its separate property status.
Repay the mortgage
If there is something you want to use the inheritance for, such as repaying a mortgage, then the best course is to discuss this issue with your wife and enter into a contracting out agreement prior to using the inheritance. An agreement could record that in the event of a separation you are to be reimbursed for the inheritance you introduced into the relationship property pool.
Summary
You will each need to see a lawyer to enter a binding contracting out agreement as there are particular rules which apply. It is not sufficient for you to agree this between yourselves, even if you put it in writing.
Jeremy Sutton’s advice is of a general nature, and he is not responsible for any loss that any reader may suffer from following it. He does not consider your individual situation. Before you make legal decisions, should always get independent advice from a specialist lawyer.”
