If a spouse inherits real property (real estate) or personal property (money, stocks, bonds, art, jewelry, antiques, etc.) before or during marriage, it is generally separate property (not marital property) and is not subject to division upon divorce in equitable distribution/common law property states or in community property states. But any appreciation or increase in the value of such separate property (e.g., real estate, stocks) and any income from such separate property (rental payments, stock dividends) may be marital or community property—unless the parties agree otherwise in a written prenuptial or postnuptial agreement.

An important exception to this general rule is the situation in which separate property from an inheritance is commingled with marital or community property—by placing funds from both sources in the same bank account, for example, or holding (titling) real estate from both sources in the same entity (limited liability company, family limited partnership, etc.).

In Rhode Island, which follows equitable distribution laws rather than community property laws, property inherited by one spouse either before or during the marriage is typically considered separate property and not subject to division in the event of a divorce. However, any increase in value of the inherited property, such as appreciation of real estate or dividends from stocks, may be considered marital property and thus subject to division, unless there is a prenuptial or postnuptial agreement stating otherwise. It's also crucial to note that if the inherited property is commingled with marital property, such as depositing inheritance funds into a joint bank account or jointly titling inherited real estate, it may lose its separate property status and become marital property, which can then be divided upon divorce. An attorney can provide specific guidance on how these general principles apply to individual circumstances in Rhode Island.