How Are Inheritance and Gifts Treated in an Illinois Divorce?

 Posted on September 25, 2025 in Property Division

Dividing property in a divorce is a complex process, especially when you have many assets to address. For some, the question of whether to divide inheritance and gifts is simple. For others, it can be complicated. Our knowledgeable Bolingbrook, IL divorce lawyer will explain how Illinois law views inheritance and gifts. The goal is to protect your rights and ensure that what belongs to you stays with you.

Are Inheritance and Gifts Marital or Separate Property in Illinois?

Illinois law separates property into marital and non-marital property and divides it equitably, which means fairly even if not necessarily equally. According to the Illinois Marriage and Dissolution of Marriage Act (IMDMA), marital property generally includes anything acquired during the marriage. However, inheritances and gifts given to one spouse are typically considered non-marital, or separate, property.

This means that if you inherit money from a parent or receive a personal gift meant just for you, those assets do not typically need to be divided in a divorce. However, how you handled those assets during the marriage makes a difference.

How Inheritance and Gifts Can Become Marital Property in Illinois

Through commingling, separate property can become marital property. For example, if you deposit inherited money into a joint bank account, it may be treated as marital property. Using inherited funds to improve the marital home could also make the inheritance part of the marital estate.

The same rule applies to gifts. If you are given a car, it is your property alone. However, if your spouse’s name is on the title, and they used it daily to run errands like taking the kids to school, a court might view it as marital property. Courts look at how an asset was used and whether it became mixed with marital assets. Under Section 503 of the IMDMA, once assets are commingled to the point they lose their identity, they can be reclassified as marital property.

Proving That an Asset is Non-Marital Property in Illinois

To keep an inheritance or gift separate during divorce, you must prove it qualifies as non-marital property. This often requires documentation, such as a copy of a will, a trust, or a written statement from the person who gave it to you. Bank and account records are also important if you keep your funds in a separate account.

Tracing is another key step, since it shows what happened with the money or property from the time you received it until the divorce. Sometimes expert testimony from accountants or appraisers is needed. Courts rely on this evidence when deciding whether property is part of the marital estate.

Steps To Keep Inherited or Gifted Assets Separate

You can take some practical steps to ensure that your separate property remains separate:

• Open and maintain a bank account that is used only for inherited or gifted funds.

• Treat gifted or inherited property as personal property rather than mixing it into family finances.

• Save proof of where the asset came from, such as legal documents, letters, or account histories.

• Put clear terms in a prenuptial or postnuptial agreement to avoid future disputes.

• Avoid putting your spouse’s name on titles or deeds connected to inherited property.

• Talk to an estate planning or divorce attorney about long-term strategies to protect non-marital assets.

Contact a Plainfield, IL High-Asset Divorce Attorney

As you start the divorce process, having the right legal guidance can help you avoid costly mistakes. At The Law Offices of Robert F. Kramer, Ltd., you will work with an accomplished trial and appellate lawyer who brings more than 40 years of experience to each case. Attorney Robert F. Kramer is supportive, guiding clients step by step through the process. He offers the steady hand you need during a difficult time.

Call 630-785-2400 today to schedule a free 30-minute initial consultation with our Bolingbrook, IL divorce lawyer.