Some marriages don’t last, so couples may want to prepare for possible separation before it happens. This will help them reduce the stress when they face divorce and end up in ugly court battles. During a divorce, one of the issues that couples have to resolve includes property division.
In Minnesota, marital property must be divided equitably between spouses. The court will determine what is equitable which may not mean fair. If you have an inheritance, you will want to protect it from this division. A reputable family attorney from a Rochester law firm will help you determine which assets can be included in the division during a divorce.
Community Property vs Separation Property
Every state has its own rules in terms of how mutual property must be handled or split in a divorce. In a community property state, property accumulated by a couple during their marriage must be shared by them. equally. Thus, if a spouse owns a business that they started during their marriage, their spouse deserves a share of this business and its profits. If you purchased a house while you are married, you and your spouse will own it together. And when you divorce, these assets must be divided equally between you. You do not need to cut your home in half; however, you must look for a fair way to let the two of you get half of the home’s value and the value of all marital assets.
Meanwhile, equitable distribution takes into account factors like every spouse’s financial standing and income sources, the length of the marriage, as well as whether they have children. A judge determines what is equitable for both spouses.
What Happens to Your Inheritance?
Any property you inherited or received as a gift you wish to keep to yourself should be kept separate. But, the possibility of this happening depends on how you got the property. To protect your inheritance, ensure the funds are not co-mingled with the assets you and your spouse share.
A lot of people use trust when planning for their estate to protect their assets from those who may try to take them when they are gone. But having your assets in a trust, your loved ones may be able to access funds easily when you pass. You can put your inheritance or a gift in a trust to ensure they stay within your family and do not fall into the wrong hands. Just designate someone to be your beneficiary. Another way to protect your inheritance is by having a prenuptial or postnuptial agreement.
