Introduction
Going through a divorce is difficult enough, but the emotional stress is often compounded by financial worries — especially when you have inherited property at stake. You may be wondering, “Will I have to split my inheritance with my spouse?”
Minnesota is an equitable distribution state, which means that property is divided fairly, not necessarily equally. Fortunately, inherited property is generally considered separate, not marital, as long as certain steps are taken to preserve its status.
In this blog, we’ll break down how inheritance is treated in Minnesota divorces, how you can protect it, and what to do if your spouse is trying to claim a share.
Inherited Property: Marital or Non-Marital?
Under Minnesota law, property is categorized as either marital or non-marital:
- Marital property includes anything acquired by either spouse during the marriage — income, real estate, retirement accounts, and more.
- Non-marital property includes assets owned by one spouse before marriage or acquired individually through gift or inheritance.
According to Minnesota Statutes § 518.003, inherited assets are non-marital property by default — but only if they are kept separate.
Commingling: The Biggest Risk to Your Inheritance
The most common way inherited property becomes vulnerable in a divorce is through commingling — when separate assets are mixed with marital assets in a way that makes them indistinguishable.
Examples of commingling include:
- Depositing inherited money into a joint bank account
- Using inherited funds to pay the marital mortgage
- Titled inherited real estate in both spouses’ names
- Renovating the inherited property with marital income
Once this occurs, it can be difficult — and sometimes impossible — to prove that the inheritance should still be treated as non-marital.
How to Protect Your Inheritance in a Minnesota Divorce
If you’ve received or expect to receive an inheritance, these steps can help ensure it remains yours:
1. Keep It Separate
Place any inherited money in an individual account held only in your name. Do not deposit marital income or use the funds for joint expenses.
2. Avoid Titled Transfers
If you inherit real estate, do not transfer the deed into both names. Keep the title in your name only.
3. Track All Documentation
Keep clear records of how and when you received the inheritance. This includes:
- The will or trust document
- Bank statements
- Transfer paperwork
- Communications with the executor or attorney
Documentation is crucial when proving a non-marital claim.
4. Consider a Postnuptial Agreement
If you inherit property during the marriage, a postnuptial agreement can clarify that it remains non-marital — as long as both spouses agree and full disclosure is made.
5. Avoid Using It for Marital Expenses
Even if your spouse encourages it, do not use inherited funds for joint purchases, bills, or debt. Doing so could transform non-marital funds into marital property.
What If You Already Commingled the Inheritance?
If your inheritance has been mixed with marital assets, all is not lost — but you’ll need to trace the origin of the funds to prove they were originally non-marital.
This process, called asset tracing, requires:
- Financial records
- Testimony from accountants or forensic experts
- Bank statements showing the flow of funds
A divorce attorney at Martine Law can help you build a strong tracing case and argue for the protection of your inheritance.
Inherited Property Appreciation: Marital or Not?
Even if the original inheritance is non-marital, any increase in value may be considered partially marital under certain circumstances.
Passive Appreciation
If your inherited property grew in value due to market forces (for example, rising real estate values), that appreciation remains non-marital.
Active Appreciation
If your spouse contributed to the property’s increase in value (e.g., helped renovate an inherited home), then a portion of that appreciation may be considered marital and subject to division.
This can quickly become a complex legal issue requiring expert valuation and testimony.
Using Inherited Property as Leverage in Negotiations
Even if your inheritance is off-limits, it may influence the overall property division in negotiations or court. For example:
- A judge may award your spouse a larger portion of marital assets if you’re keeping a significant non-marital inheritance.
- If the inherited asset is your primary residence, the court may factor that into child custody or housing needs.
That’s why it’s important to work with a law firm like Martine Law that can guide you on how to leverage your inheritance without exposing it to division.
Will a Prenuptial Agreement Help?
Yes — a prenuptial agreement can designate any future inheritance as separate property, regardless of how it is used or titled. This is one of the most effective ways to protect inheritance in a divorce.
Just make sure the prenup was signed:
- Voluntarily and without coercion
- With full disclosure from both parties
- In writing and properly notarized
Why You Need an Attorney to Protect Your Inheritance
Without skilled legal guidance, it’s easy to unknowingly give up rights to property you should keep. At Martine Law, we help clients:
- Classify assets correctly
- Trace non-marital property
- Prevent or correct commingling issues
- Negotiate settlements that preserve inherited assets
- Present strong arguments in court
We understand the nuances of Minnesota family law and use strategic planning to protect your financial future.
Final Thoughts
Inheritances are deeply personal, often tied to family history or emotional significance. They shouldn’t be automatically lost in a divorce — but protecting them requires foresight, documentation, and proper legal handling.
If you’re going through a divorce or planning for the future, contact Martine Law for a consultation. Our attorneys will help you preserve what’s rightfully yours and guide you through every step of the divorce process.