Some marriages don’t last, so couples may want to prepare for a possible separation before it happens. This will help them reduce stress when facing divorce and ending up in ugly court battles. During a divorce, one of the problems that couples must resolve includes the division of property.
In Minnesota, marital property must be divided equally between the spouses. The court will determine what is fair, which may not mean fair. If you have an inheritance, you will want to protect it from this division. A licensed family attorney from a Rochester Law Firm It will help you determine what assets can be included in the division during a divorce.
Community property vs. separate property
Each state has its own rules in terms of how mutual property should be handled or divided in a divorce. In a community property state, the property accumulated by a couple during their marriage must be shared by them. Equally. Therefore, if a spouse owns a business that they started during their marriage, their spouse deserves a share of this business and its earnings. If you bought a home while you were married, you and your spouse will own it together. And when you get divorced, these assets must be divided equally between you. You don’t need to cut your house in half; however, you should find a fair way to allow the two of you to get half the value of the home and the value of all marital property.
Meanwhile, the equitable distribution takes into account factors such as the financial situation and sources of income of each spouse, the length of the marriage and whether they have children. A judge determines what is fair for both spouses.
What about your inheritance?
Any property that you inherited or received as a gift that you want to keep for yourself should be kept separate. But, the chance of this happening depends on how you obtained the property. To protect your inheritance, make sure the funds are not mixed with the assets that you and your spouse share.
Many people use trust when planning their estate to protect their assets from those who may try to take them when they are gone. But by having your assets in trust, your loved ones may be able to access the funds easily when you pass away. You can put your inheritance or a gift into a trust to make sure they stay within your family and don’t fall into the wrong hands. Simply designate someone to be your beneficiary. Another way to protect your inheritance is through a prenuptial or postnuptial agreement.