When a marriage ends, one of the most confusing and emotionally charged issues is how property will be divided. Many people worry about what will happen to money or property they inherited from a parent or grandparent. In Minnesota, the way inheritances are treated during divorce is very specific, and understanding the rules is important for protecting your financial future.
This guide explains how Minnesota courts view inheritances, when they are considered nonmarital property, and how you can safeguard an inheritance during the divorce process.
Are Inheritances Considered Marital Property in Minnesota?
Under Minnesota law, inheritances granted to only one spouse are usually classified as nonmarital property. This means they belong only to the spouse who received the inheritance, and they are not automatically divided during a divorce.
An inheritance can remain nonmarital whether it was received before or during the marriage, as long as it is kept separate and can be traced.
However, nonmarital status is not guaranteed. The spouse claiming the inheritance must prove it is nonmarital with clear evidence.
How Inheritances Lose Their Nonmarital Protection
Even though inheritances start out as nonmarital property, they can lose that protection if they become mixed with marital assets. This is known as commingling.
An inheritance may become marital if:
- It was deposited into a joint bank account
- It was used for shared household expenses
- It was used to renovate or purchase a jointly owned home
- Both spouses had equal access to the inherited funds
- It was placed in investments or accounts that included marital contributions
Once an inheritance is mixed into marital finances, the court may determine that some or all of it is now marital property. Marital property is subject to equitable division during divorce.
The Importance of Tracing in Minnesota Divorces
If you want to protect an inheritance, you must be able to trace it back to its original source. Tracing means showing clear records that connect the inherited funds or assets to you alone.
This may include:
- Bank statements
- Transfer records
- Estate distribution documents
- Account histories
- Real estate records
Without proper tracing, the court may not allow the property to remain nonmarital. Minnesota family law places the burden of proof on the spouse claiming the inheritance.
Inherited Homes and Real Estate in Divorce
Real estate received through inheritance is treated like any other inherited asset. It remains nonmarital as long as:
- It is kept in the inheriting spouse’s name
- Marital funds were not used to maintain or improve the property
If both spouses contributed money, labor, or investments into the inherited property, part of the property’s value may become marital. This is especially common with lake cabins, farmland, or rental properties that families inherit in Minnesota.
Inherited Money Used for the Family
When inherited money is used for the benefit of both spouses, Minnesota courts often determine that the spouse receiving the inheritance intended to share it. This can happen when the money was used to:
- Pay down a joint mortgage
- Buy vehicles or family items
- Cover shared debt
- Make home improvements
The court will evaluate how the funds were used and whether the couple treated the money as a shared asset.
Protecting Your Inheritance During a Divorce
If you are concerned about protecting inherited money or property, a Minnesota divorce attorney can help you:
- Identify and document nonmarital assets
- Trace inherited funds and property
- Prevent unnecessary commingling
- Negotiate to keep your inheritance separate during settlement discussions
- Ensure the final decree correctly lists nonmarital property
At RWI Law, we work closely with clients to safeguard inherited assets and make sure their financial rights are fully protected.
Why Inheritance Issues Are Complex
Every divorce is different, and small details can have a big impact. Some of the most challenging situations include:
- Long marriages where records are difficult to locate
- Inheritances received many years ago
- Cases where spouses disagree about how funds were used
- Property that increased in value during the marriage
- Improvements made to inherited real estate
Because Minnesota uses equitable property division, not equal division, the court can consider many factors when deciding how to distribute marital assets.
Talk to a Minnesota Divorce Attorney About Your Inheritance
If you are beginning a divorce or already in the process, understanding your rights regarding inherited property is essential. An experienced family law attorney can help you determine whether your inheritance is protected, how to document it, and what steps to take to preserve your financial future.
Call (320) 408-2614 to schedule a confidential consultation with RWI Law. We will review your situation, explain Minnesota’s nonmarital property laws, and help you take the right steps to protect your inheritance during divorce.