Minnesota Property Divorce Lawyer
• Property that is Dividable - Minnesota is an equitable property state. Equitable property means that Minnesota Courts have broad powers to divide the property of the parties. Property does not necessarily have to be evenly divided.
• Division of Marital Property - Minnesota courts are to make a just and equitable distribution of the marital property of the parties and are to make a decision based on all relevant factors including: 1) the length of the marriage; 2) any prior marriage of a party; 3) the age of each party; 4) the health of each party; 5) the station in life and/or occupation of each party; 6) the amount and sources of income of each party; 7) the employability of each party; 8) the estate of each party; 9) the needs and liabilities of each party; 10) the opportunities for future acquisitions of assets; and 11) the contributions made during the marriage, including contributions of a homemaker.
• Marital Property - All real or personal property acquired during the marriage relationship is marital property. The valuation period extends between the date of the marriage and the date of valuation.
• Non-Marital Property - All real or personal property that falls in one of the following categories is nonmarital property: property acquired as a result of a gift, bequest, devise, or inheritance made by a third party to one spouse but not the other, property acquired prior to the marriage; property acquired after the date of valuation; property excluded by a valid antenuptial contract; property acquired in exchange for nonmarital property; or the increase in value of nonmarital property. Because Minnesota is an equitable property state courts do have some authority to divide nonmarital property to prevent an unfair hardship. Division of nonmarital property is rare.
• Date of Valuation - The date of valuation differs depending on which judicial district the action is started in, but in many cases the date of valuation is the original date of the prehearing conference.
• Homesteads (Real Property) - The award of occupancy of a home is a statutory power given to Minnesota Courts in a final decree of dissolution or during the dissolution process. The custody of any children is often of paramount importance in making such decision. Minnesota courts attempt to minimize the disruption to children, therefore awarding the homestead to the custodial parent is an easy way to achieve the desired result. In cases where the parties cannot agree as to occupancy, and children are not an issue, courts are likely to order the property sold and the proceeds divided.
• Pensions, Retirement Plans - Pensions and retirement plans which are vested are included as marital property and thus are subject to division. In the case of nonvested pensions and retirement plans Minnesota Courts are also free to divide the nonvested property during a divorce. The difficulty comes in determining the value of the unvested, unmatured property. Typically division is made in one of two ways: Present Cash Value and the Reserved Jurisdiction Method.
• Professional Degrees - Prior court decisions have held that Minnesota Courts have the equitable powers to compensate a spouse who worked full time while the other spouse advanced their education. Other court decisions have held that a degree is not a marital asset subject to division. The result of these decisions mean that a court is not free to award future earnings obtained as a result of that decree. Courts are more likely to grant an award when there is a short time frame between obtaining a degree and separation.
• Businesses, Sole Proprietorship, LLC, Inc. - Division of assets relating to businesses owned by one of the parties is an area for much contention. Part of the reason is that it is difficult in many case to establish a value of the business. Regarding corporations, courts have used three different approaches to valuation: 1) if divisible, divide the asset in a just and equitable manner; 2) order the sale or liquidation of the interest in the corporation; or 3) determine the value of the corporation and order the payment of a sum to satisfy the other spouses interest. Regarding partnerships, a court is not free to award a partnership interest for a spouse that is not a member of the partnership
• Debt - Just like the case of marital property Minnesota courts as part of a divorce are afforded borad discretion in the division of debt. Division and apportionment of debt is reviewed under the same approach as that of property.
• Modification of Property Awards - A division of real and personal property is final once the divorce decree in signed. In Minnesota there are a limited number of circumstances that courts will modify a property award.
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