I’m 29 years old, just inherited $1.2M from my parents and plan to get married in 2025 — should I make sure my fiancee signs a prenup before we get hitched?

Your inheritance is separate property — until it isn't

If you're hoping to protect your inheritance from being lost in a divorce, there's some good news. Whether you receive the money before or during your marriage, it's typically considered separate property if the money was left to you alone. This means it would not be subject to division in divorce.

However, there's just one problem.

Your separate property can become marital property if you comingle it. For example, if you deposit the funds into a joint bank account or use the money to buy a family home with your spouse on the title, the inheritance could lose its status as separate and become subject to division in divorce. This process is called transmutation, and it can be hard to avoid as you build a life together.

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A prenup may be the best way to protect an inheritance

Keeping your inheritance separate at all times is one way to protect it, but this may not be the approach, as you’d need to be extremely careful to avoid doing anything that could turn the money into marital property.

A prenuptial agreement enables you to avoid this potential risk. It allows you to clearly outline what each spouse will walk away with in the event of a divorce. This can not only protect your inheritance from being divided but also save you a lot of stress — and extra legal expenses — if your marriage ends.

However, ensure the prenup is legally valid. This means carefully following your state's laws and making sure that your future spouse is fully aware of all of your assets before signing, including the inheritance you've just received. A family law attorney can help you draft a valid contract.

If your partner is unwilling to sign a prenup, there are other options, such as transferring the inheritance to a trust before marriage. Even with this, you'd still typically need to ensure the assets aren't comingled to keep them protected.

For most people concerned about keeping an inheritance safe, a prenup is the way to go. Situations like this are why prenuptial agreements were created in the first place.

If you don't want to gamble $1.2 million on the chance that your your marriage is among the 57% of first marriages that succeed, you should insist upon signing a prenup before you say "I do."