When Minnesota couples divorce, their property will either be deemed as marital property or as that which is separately owned. All marital property is subject to division between the spouses, while separate property is not divisible.
The best way in which people can protect their separate assets is by using a prenuptial agreement. If getting an agreement is not possible, there are ways in which people may still protect those assets, however. When people marry, many have bank accounts with money already in them. If they add their spouse’s name to the account, those funds may lose their exclusion as separate property.
Inheritances and gifts are generally considered to be the separate property of the person who receives them, whether they receive them prior to or after the marriage. If the recipient deposits the proceeds into a joint bank account, however, they have commingled the assets and the entire amount may be divided by the court. It is best if people instead open a separate account and deposit those proceeds in that account.
If a person owns a home prior to marriage, they should avoid putting their spouse’s name on the title. They should also avoid using marital funds for the property’s upkeep and mortgage payments, instead using their own separate funds. Finally, it’s a good idea to get a business valuation prior to the marriage, and then another at the time of a divorce in order to limit the spouse’s ability to claim a greater portion of any increase in the company’s worth. People who are planning to marry may want to meet with a family law attorney for guidance on how to best protect their assets. An attorney may be able to negotiate with the other party to secure a prenuptial agreement.
