Washington, Community Property and Inherited Assets – What Happens?

Most of us don’t get married thinking it will end. Still, in the U.S., a large share of marriages—roughly 40–45%—do end in divorce over time. That’s just a reality check, not a prediction. And as we get older, many of us will inherit a house, savings, or investments from family.

Here’s the part folks don’t always hear: Washington is a community-property state. By default, what you earn during the marriage is “community,” but gifts and inheritances can stay your “separate” property—if you keep them separate and traceable. If you mix that inheritance into joint accounts, use it for shared expenses, or retitle things without thinking it through, you can accidentally convert parts (or all) of it into community property. If there’s a divorce later, your spouse could claim half of everything, including the inheritance you meant to keep separate.

Also important: in Washington, courts have broad discretion when dividing community funds and debts. And while inheritances are generally separate, a heavy burden would be on you to prove an asset stayed separate. That usually means clear, consistent tracing from the day you received it to the present. If the paper trail is messy or the money was commingled, it can get much harder to keep that property separate in a divorce.  So what does “separate and traceable” look like in real life?  That varies depending on the nature of the assets—an experienced attorney can help you figure out specifics to protect the separate nature.

A quick (fictional) example:  Jenny inherits $600,000 from a grandmother. Jenny deposits the funds into a separate, inheritance-only account, then buys a family home entirely with those funds—no joint money at closing, no community down payment. Title and records show the inheritance source, Jenny as the owner, and Jenny later places the home into a revocable trust for estate-planning reasons. The family lives there happily for years. If there’s an eventual divorce, Jenny will have a very good chance of proving the funds were kept separate and the purchase was made solely with inheritance money, so Jenny would have a strong chance of showing the residence is separate property. Good records and keeping the money and assets separate from other money and assets make the difference.

On the other hand, let’s say Jenny used $400,000 of the inheritance as a down payment on a property, then took out a mortgage that was paid using her and her partner’s income during the marriage in Washington, then, years later, interest rates are low and the couple re-finances the house to pay off some debts.  The other $200,000 was put into a joint savings account, that already had about $30,000 in the account and the couple used that money for different things over the years, cars, down payments, and added to the account on an ongoing basis.  With this scenario, it is likely that, in a dissolution, a court would find that the inheritance had been co-mingled with community funds and thus, belonged equally to both spouses in a longer term marriage.

There isn’t a one-size-fits-all answer. You may want to share generously with your spouse, or you may want to preserve your inheritance for your children and for yourself—any of these options are valid choices. The key is to be intentional and get clear on the law before you take steps that are hard to unwind.  It’s always okay to consult with a lawyer when you know you will be receiving an inheritance and you decide whether you involve your spouse with that decision.

A quick reality check about court discretion

Even with careful planning, courts in Washington have broad discretion to divide property in a way they believe is “just and equitable.” That means a judge can look at the full picture—length of the marriage, each spouse’s economic situation, ages and health, earning capacity, and who will shoulder which debts—and make a distribution they view as fair overall. Clear tracing and good records can strongly support your claim that an inheritance is separate, but no plan can guarantee you’ll keep every dollar exactly as you hope.

Remember, marriage is a legal and financial partnership. Couples share rights, responsibilities, and real benefits—from tax advantages to community-property growth. Because of that, a court may ultimately have significant power to decide what fairness looks like in your specific case. The smartest move is to get advice early, document well, and choose legal strategies and tools that reduce risk and put you in the best position—while understanding that the final call, if it comes to court, rests with the judge.

If you’ve received (or expect to receive) an inheritance and you’re unsure what to do next, talk with a good attorney. Someone who handles family law and understands estate-planning basics can help you craft a plan that fits your values—whether that’s sharing, protecting, or a thoughtful mix of both.

If you have questions in Washington, we’re happy to advise and provide needed referrals. Call (360) 213-0013 for a straightforward conversation about your situation.