Divorce can bring many uncertainties—especially when it comes to dividing assets. If you’ve received an inheritance during your marriage or before it, you might be wondering whether your ex-spouse is entitled to a portion of it.
In Minnesota, inheritance is generally considered non-marital property, which means it belongs to you alone. But as with many legal issues, the answer isn’t always so straightforward. Certain circumstances could put your inheritance at risk during property division.
This blog explains when an inheritance is protected in a Minnesota divorce, how you can lose that protection, and what you can do to safeguard your assets.
How Minnesota Divides Property in Divorce
Minnesota is an equitable distribution state. That means marital property is divided fairly—not necessarily equally. The court considers various factors, including each spouse’s contributions to the marriage, financial situation, and future needs.
There are two types of property under Minnesota law:
- Marital property – Property acquired by either spouse during the marriage.
- Non-marital property – Property acquired before the marriage or through inheritance or gift made solely to one spouse.
Understanding where your inheritance falls is critical to determining if it will be subject to division.
When Is Inheritance Considered Non-Marital Property?
In most cases, an inheritance received by one spouse before or during the marriage is classified as non-marital. This means:
- You received the inheritance in your name only.
- The will, trust, or gift documentation clearly identifies you as the sole beneficiary.
- You did not co-mingle or share the funds or asset with your spouse.
If these conditions are met, the inheritance usually remains protected and isn’t divided during divorce.
How Inheritance Can Become Marital Property
Even if your inheritance started as non-marital, certain actions can convert it into marital property, making it subject to division. This can happen through:
1.
Co-mingling Funds
If you deposited inheritance money into a joint bank account or used it to purchase jointly titled property, you may have co-mingled the inheritance, making it marital property.
Example: You inherited $50,000 and put it in a shared savings account. Over time, both you and your spouse used that money for household expenses. The court may consider the entire amount marital.
2.
Using the Inheritance for Marital Assets
Using inherited funds to improve or buy marital property—like renovating the family home—can turn the inheritance into a shared asset.
Example: You used inherited money to build an addition on your jointly owned house. Even if the money was yours, the improvements increased the value of marital property, and your spouse may claim a portion.
3.
Putting the Inheritance in Both Names
If you title inherited property—like a home or investment account—in both your name and your spouse’s, it can lose its non-marital status.
How to Prove Your Inheritance Is Non-Marital
The burden of proof is on the spouse claiming the asset is non-marital. This means you need to:
- Show a paper trail of the inheritance (wills, trust documents, etc.)
- Provide bank statements and transaction records
- Prove the asset was kept separate from marital property
If your records are clear and consistent, the court is more likely to protect the asset as non-marital.
Can You Protect Your Inheritance During Marriage?
Yes. You can take proactive steps to preserve your inheritance:
- Keep it in a separate account in your name only
- Avoid using it for joint expenses or purchases
- Maintain thorough documentation
- Consider a postnuptial agreement to clarify ownership
If you’re planning to marry or already married, a prenuptial or postnuptial agreement can clearly state that your inheritance remains your separate property. These legal contracts are enforceable under Minnesota law if properly executed.
What If My Spouse Contributed to the Inherited Property?
Even if the inheritance is in your name, your spouse may still have a claim for reimbursement if they significantly contributed to the asset’s value.
Example: You inherited a cabin but your spouse helped renovate and maintain it for years. The court may not award them ownership, but they might receive compensation for their contributions.
This is part of Minnesota’s equitable approach—the court aims to ensure fairness, not necessarily a 50/50 split.
What If My Inheritance Includes a Business?
Inherited businesses can be especially complicated. If your spouse worked in the business, helped it grow, or was otherwise involved, the court may consider some of the increased value to be marital.
To protect the business:
- Keep business finances separate from household finances
- Avoid adding your spouse as an owner or employee without contracts
- Maintain clear valuation records
Work with a Minnesota Divorce Lawyer
If you’re concerned about protecting your inheritance during a divorce, don’t wait until it’s too late. A skilled Minnesota divorce attorney can help you:
- Identify and classify assets correctly
- Gather the right documentation
- Negotiate or litigate property division with clarity and strength
At Martine Law, we’ve helped clients preserve their hard-earned assets and secure fair outcomes—even in complex property division cases.
Contact us today to schedule a consultation and discuss your best legal options.