If I received an inheritance during my marriage, does it get shared in equalization?

An inheritance received from someone other than your spouse during the marriage can be excluded from your net family property — meaning you keep the full benefit of it rather than sharing the growth with your spouse. This is one of the most important exclusions in the Family Law Act.

However, you must be able to trace the inheritance to claim the exclusion. If you received a lump sum and kept it in a dedicated investment account, tracing is straightforward. If you mixed it with joint savings, used it to renovate the matrimonial home, or otherwise blended it with family funds, tracing becomes difficult or impossible and you may lose the exclusion.

There is one major exception: if the inheritance was used to buy or improve the matrimonial home, you cannot exclude that amount unless you had a valid marriage contract protecting it. The matrimonial home exclusion rules are stricter than for other assets.