Dividing property during a divorce can be one of the most stressful parts of the process. If you or your spouse received an inheritance, you might be wondering if that money or property will be divided as part of the marital estate.
Minnesota has specific rules about when an inheritance is considered separate property and when it might be treated as marital property and subject to division.
Don’t lose more. Contact an expert lawyer who can help you today.
How Property Division Works in Minnesota
Minnesota is an equitable distribution state, which means marital property is divided fairly (though not always equally) during a divorce. Marital property generally includes anything acquired by either spouse during the marriage — except for a few specific exclusions, including most inheritances.
When Inheritance Is Considered Separate Property
In most cases, an inheritance is considered non-marital property in Minnesota. This means that:
- It belongs solely to the person who received it – even if it was received during the marriage.
- It is not divided during the divorce – as long as you can prove that it is indeed separate.
To keep an inheritance classified as non-marital property, you must be able to trace it clearly and show that it was not mixed (or “commingled”) with marital assets.
How Commingling Can Turn Inheritance Into Marital Property
An inheritance can lose its non-marital status if it is commingled with marital funds in a way that makes it impossible to separate. Common examples include:
- Depositing inheritance money into a joint bank account and using it for family expenses.
- Using inherited funds to pay off a marital mortgage or buy property titled jointly.
- Making improvements to jointly owned assets with inherited funds.
When commingling occurs, the court may determine that all or part of the inheritance is now marital property and subject to equitable division.
Contact a divorce lawyer who can guide you to a fair resolution.
Proving Your Inheritance Is Non-Marital
If you want to protect your inheritance during a divorce, documentation is key. This may include:
- The will, trust, or other legal documents showing you were the sole beneficiary.
- Bank statements showing the inheritance was kept in a separate account.
- Records tracing how funds were used, if any portion was spent.
An experienced Minnesota property division attorney can help you gather evidence and make the strongest case for keeping your inheritance separate.
What If Your Spouse Claims Part of Your Inheritance?
If your spouse claims a portion of your inheritance should be considered marital property, the court will review the evidence. If commingling occurred but can be traced, a portion may still be set aside as your non-marital share. If tracing is not possible, the court may divide the entire amount as marital property.
Protecting Future Inheritances
If you are currently married and expect to receive an inheritance, you can take steps to protect it:
- Keep the inheritance in a separate account in your name only.
- Avoid using inherited funds for joint expenses or marital purchases.
- Consider a postnuptial agreement to clearly state that inheritance will remain non-marital.
Why You Should Consult a Lawyer
Inheritance and property division issues can quickly become complicated, especially if large amounts of money or valuable property are involved. A knowledgeable Minnesota divorce lawyer can help you trace assets, present evidence, and protect what is rightfully yours.
Get Legal Help Protecting Your Inheritance
If you are going through a divorce and are concerned about how your inheritance will be handled, Martine Law can help. Our experienced team understands Minnesota property division laws and can guide you through each step to protect your assets.
Contact us online to schedule a confidential consultation.
FAQs About Inheritance in Minnesota Divorce
Does inheritance always stay separate in a divorce?
Not always. While inheritance is generally considered non-marital property, it can become marital if it is mixed with shared assets in a way that makes it difficult to separate.
What if my spouse used part of my inheritance during the marriage?
If you can trace how the money was used, you may still be able to claim the remaining funds as non-marital. If tracing isn’t possible, the court may treat it as marital property and divide it.
Can I protect a future inheritance before divorce?
Yes. Keeping the inheritance in a separate account and avoiding commingling are critical steps. You may also consider a postnuptial agreement to clearly protect your inheritance.