Excluded property is the property that a spouse brings into a relationship and inheritances or gifts received by one spouse during the relationship.
Excluded property is typically not divided at the end of the relationship; however, the increase in value during the relationship is considered family property which means it can be divided equally at the end of the relationship. The matter becomes further complicated if the excluded property is mingled with family property or used for a family purpose. Some assets acquired during the relationship, such as gifts and inheritances to one spouse, enjoy the same protection.
A well drafted agreement will protect you and ensure that your excluded property remains your excluded property in the event of a separation.