Are Inheritances and Gifts Divided in a South Carolina Divorce?

Reviewed by Carrie Warner, Attorney at Law, SC Bar No. 72836 · Last reviewed November 2, 2026

In South Carolina, property you inherit or receive as a gift from someone other than your spouse is generally nonmarital property, and the family court cannot divide nonmarital property. That protection is not automatic in practice, though. How the money or property was used during the marriage, and whether you can trace it, often decides whether it stays yours alone.

What the Statute Says

S.C. Code § 20-3-630(A) lists the kinds of property that are not marital. The first category is property acquired by either party “by inheritance, devise, bequest, or gift from a party other than the spouse.” In plain terms:

• Inheritance means property you receive when someone dies, whether through a will or by law if there is no will.
• Devise and bequest are older words for gifts made in a will (devise usually refers to real estate).
• Gift from a third party means something given to you by a parent, grandparent, friend or anyone other than your spouse.

Section 20-3-630(A) also protects property acquired in exchange for nonmarital property. For example, if you sold land you inherited and used the money to buy a different lot in your own name, the new lot may also be nonmarital. Under § 20-3-630(B), the court does not have jurisdiction to apportion nonmarital property.

Our page on marital vs. separate property covers the broader rules, and the inheritance page focuses on inherited assets.

Gifts Between Spouses Are Different

The statute protects gifts from a party other than the spouse. A gift from your husband or wife during the marriage is marital property, and that includes a gift your spouse arranged to reach you through a third person. So an anniversary ring, a car your spouse bought you, or a vacation property your spouse put in your name is generally part of the marital estate.

Wedding gifts and gifts from in-laws can raise harder questions. A judge may look at who the giver intended to benefit, whose name the gift was in, and how it was used. If a gift was clearly meant for both of you, such as money from your parents toward a jointly titled house, it may be treated as marital.

How Nonmarital Property Can Become Marital

South Carolina case law recognizes that nonmarital property can lose its separate character during a marriage. Two related ideas come up most often.

Transmutation

Transmutation happens when separate property is treated as marital. Courts often consider whether the property was titled jointly, used to support the family, or treated by both spouses as common property. For example, a spouse who inherits a house, adds the other spouse to the deed, and uses it as the family residence for years may face an argument that the house became marital. Our article When “Mine” Becomes “Ours” explains transmutation in more detail.

Commingling

Commingling means mixing separate funds with marital funds until they can no longer be told apart. A common example is depositing an inheritance into a joint checking account that also receives both spouses’ paychecks and pays household bills. Over time, the inherited dollars may become impossible to identify.

Neither result is automatic. Whether property was transmuted or commingled is a fact question for the court, and the spouse claiming the property is nonmarital generally needs to show where it came from.

Increases in Value: The Other-Spouse-Efforts Rule

Under § 20-3-630(A), an increase in value of nonmarital property is also nonmarital, except to the extent the increase resulted directly or indirectly from the efforts of the other spouse during the marriage.

That distinction matters. Compare two examples:

• A spouse inherits a stock portfolio that grows only because the market rose. The growth may stay nonmarital.
• A spouse inherits a rental duplex, and the other spouse spends years managing tenants, making repairs and handling the books. Some of the increase in value may be treated as marital because of the other spouse’s work.

How much of any increase is marital depends on the evidence, which may include appraisals, records of work done, and testimony about each spouse’s role.

Tracing: Proving Where the Money Came From

Tracing means following an asset from its source to its current form. If you claim an account, a house or a business interest is nonmarital, you may need to show the path. Helpful records include:

1. The will, trust document or probate records showing what you received and when
2. A letter or gift record from the giver stating the gift was for you
3. Bank or brokerage statements showing the deposit of the inheritance or gift
4. Statements for every account the money moved through
5. Closing documents if the money was used to buy property
6. Deeds and titles showing how each asset was held

Gaps in the paper trail make tracing harder. If old statements are missing, banks can often provide them, sometimes for a fee. Our list of financial records for a South Carolina divorce can help you organize.

Protecting a Future Inheritance

If you are married now and expect to inherit, a few habits can help keep the property separate:

• Keep inherited money in an account in your name alone.
• Do not deposit marital income into that account or pay family bills from it.
• Think carefully before retitling inherited property in joint names.
• Keep copies of estate and gift documents permanently.

Spouses can also address inheritances in a written agreement. Section 20-3-630(A) excludes property that the parties agree in a written contract is nonmarital. Read about postnuptial vs. prenuptial agreements if this applies to you. Trusts raise their own issues, covered in trusts in South Carolina divorce.

Can Nonmarital Property Still Affect the Outcome?

Yes, indirectly. Even though the court cannot divide nonmarital property, the equitable apportionment factors in § 20-3-620(B) include each spouse’s nonmarital property. The alimony factors in § 20-3-130(C) also include marital and nonmarital property. So a large inheritance may be considered when the court looks at the overall fairness of the division or at alimony, even though the inheritance itself is not split.

For a broader overview of property and support topics, visit the South Carolina Divorce Guide.

Frequently Asked Questions

Is my inheritance split in a South Carolina divorce?

Generally no. Inheritances are nonmarital under S.C. Code § 20-3-630(A), unless the property was transmuted into marital property or commingled so it can no longer be traced.

Is a gift from my spouse marital property?

Yes. Gifts between spouses, including those given through a third party, are marital property under South Carolina law.

I put my inheritance in our joint account. Is it lost?

Not necessarily. It depends on whether the money can still be traced and how it was used. Statements showing the deposit and later transactions are important.

Does my spouse share in the growth of my inherited property?

Only to the extent the increase came from your spouse’s efforts during the marriage. Passive growth, such as market gains, may remain nonmarital.

Can the court consider my inheritance even if it cannot divide it?

Yes. Each spouse’s nonmarital property is one of the factors the court weighs in dividing marital property and in deciding alimony.

Sources

• S.C. Code Title 20, Chapter 3 (§§ 20-3-130, 20-3-620, 20-3-630)