Wondering if you must share an inheritance during divorce in Ontario? Learn how to protect gifts and inheritances in family law.

When going through a divorce in Ontario, dividing property can feel overwhelming, especially when it involves something as personal as an inheritance. Many people worry: will I have to split what was gifted to me? What if I received an inheritance during the marriage? The good news is that Ontario family law makes some clear distinctions — though there are a few exceptions to keep in mind.

Is Inheritance Split in a Divorce in Ontario?

In general, inheritance and gifts are excluded property and not subject to division in a divorce. However, if your inheritance is mixed with joint assets, then it is subject to division in a divorce.

Therefore, if you receive an inheritance before or during your marriage, and you keep that inheritance separate from shared assets, it is usually excluded from the equalization process.

This means you typically do not have to share it with your spouse during a divorce. However, there are exceptions that could put your inheritance at risk.

When Inheritance Can Be Divided

There are a few situations where your inheritance might be split in a divorce:

• Commingling: If you deposit the inheritance into a joint bank account or use it to buy a family home, it may become part of the marital assets.
• Using it for joint purposes: If the inheritance funded joint debts, renovations, or vacations, it may be difficult to claim it as yours alone.
• Home purchases: If the inheritance was used towards the downpayment of a matrimonial home, even if it was in your name only, it may be considered shared under Ontario law.

This is why documentation matters.

How to Protect Inheritances and Gifts

If you want to protect your inheritance, it’s important to keep it separate from family finances. Here are a few ways to do that:

• Keep your inheritance in a separate account under your name only.
• Avoid using your inheritance for joint purchases or shared property.
• Document the source of the money clearly — keep copies of wills or bank transfers.
• Marriage Contracts can help protect personal assets like inheritances in case of separation.
• Consult a family lawyer when receiving a significant gift or inheritance during marriage.

Gifts in Divorce: Do They Get Split?

Like inheritance, gifts from third parties (such as parents or relatives) are usually excluded from property division. But again, the way you treat that gift after receiving it can change how it’s classified.

Using the gift to pay for the family home, family vacations, or shared accounts may reduce your chances of keeping it separate in divorce.

Exceptions and Legal Advice

Ontario divorce law has nuances, especially when it comes to proving what’s excluded and what’s not. For example, if your spouse contributed significantly to the value of the inherited asset (like renovating a home you inherited), there may be a claim for compensation or division.

Final Thoughts

Navigating inheritance and divorce in Ontario can be tricky. The best way to ensure your rights are protected is to speak with a lawyer who understands both inheritance and divorce law in Ontario. With proper legal advice and documentation, you can protect what was meant for you.

Need Help?

If you’re worried about what happens to your inheritance during a divorce, we’re here to help. Contact Gosai Law to book a consultation. We’ll guide you through your rights and help protect your financial future.