Legal Question in Family Law in California

An inheritance is the separate property of the spouse that inherits, and is not subject to division of community property, unless the inheritance was commingled. This rule applies, regardless of the status of the married couple's divorce action at the time of the inheritance.

As is frequently the case with Roach's answers it is or at least may be entirely wrong. He is right that inheritances are separate property and not subject to division unless comingled. Unless the house was owned free and clear, however, with no debt, and no taxes were paid on it from community funds and no loan payments made, no improvements, etc., the community will have a reimbursement right that will have to be evaluated and calculated as part of the divorce settlement. At the very least the divorce settlement will need to confirm it as separate property. So the answer to your question is "no" it is not exempt from being dealt with in the settlement, it just is dealt with in specific ways that are different from community property of the marriage.