Minnesota Property Division | MN Settling Disputes for Marital and Non-Marital Divorce Assets and Debts

When a couple gets divorced, everything from the marriage must be sorted out by the courts. One of the most important tasks a court must perform is property division, specifically Minnesota property division.

The first thing a divorcing spouse should do is seek the advice of a licensed Family Law attorney. Seemingly simple property divisions may not be so simple and judges are more likely to rule favorably for those represented by legal counsel.

Property Division Divorce Laws in Minnesota

The purpose of Minnesota property division laws is to make sure that marital property is allocated to each spouse equitably. Minnesota marital property is divided under Minnesota Statute §518.58(1) but the trial court judge receives great discretion when converting Minnesota marital property into separate Minnesota divorce property.

Minnesota is an equitable distribution state. This means that with regard to Minnesota divorce assets, anything the spouses brought into a marriage usually will not be included in Minnesota divorce assets or Minnesota divorce property.

However, separate & non-marital household goods and furniture of one spouse may be awarded to the other as well as up to ½ of the separate & non-marital property of a spouse acquired during the marriage. This is permitted under Minnesota Statute §518.58(1) and §518.8(2) in order to further promote equitable property division.

What is considered Marital and Non-Marital Property?

Minnesota Statute §518.003(3)(b) defines marital property as “property, real or personal, including vested public or private pension plan benefits or rights, acquired by the parties, or either of them, to a dissolution, legal separation, or annulment proceeding at any time during the existence of the marriage relation between them, or at any time during which the parties were living together as husband and wife under a purported marriage relationship which is annulled in an annulment proceeding, but prior to the date of valuation.” Title of the property is irrelevant.

Non-marital property is defined under Minnesota Statute §518.003(3)(b) as “property real or personal, acquired by either spouse before, during, or after the existence of their marriage.” This includes property:

Acquired as a gift, bequest, etc. from a third party to only one spouse
Acquired pre-marriage
Acquired in exchange for or is the increase in value of non-marital property

Dividing Assets and Debt

After the court decides which property is available for distribution, the next step is property valuation. The last step is the allocation of marital property.

Under Minnesota Statute §518.58(1), the court considers a number of factors in dividing assets and debt. Some of these are:

The marriage's length
The parties' age & health
The parties' earning capacity
Prior marriages of the parties

Using statutory factors, judges determine how a marriage's assets should be divided. Here is a list of the most common property items and the most common allocation scheme used.

Cash: Divided equitably among the spouses.
- Example 1: A joint savings account has $5,000. The court would most likely divide the money among the spouses in an equitable division.
- Example 2: A joint savings account has $5,000. One spouse contributed $4,000 and the other contributed $1,000. The amount may be divided in a 50-50 split or may be more balanced if the $1,000 contributor has fewer assets than the $4,000 contributor.
Retirement Plans: Divided based on the duration of the marriage at the time the benefits accrued, looking at the present value of the plan and/or survivor benefits.
- Example 1: A spouse got benefits in a retirement plan after working for 25 years and was married for 20 of those years. The ex-spouse would be entitled to a portion of the retirement plan that was acquired during the marriage.
- Example 2: A spouse has an unvested retirement plan. No division takes place until the plan is payable to the spouse who has it. This plan may or may not be subject to property division.
Vehicles: Divided based on the values at the date of the initial pre-hearing settlement conference or another date decided by the court. May be sold or given to a spouse outright.
- Example 1: A boat is owned by a spouse. The boat may be sold with the proceeds to be given to a poorer spouse or the boat may be given to one spouse.
- Example 2: A car has a shared title. The car may be sold with the proceeds going to
- each spouse equitably or the car may be given to a poorer spouse.
Insurance: Determined based upon each spouse's health, availability of alternate insurance and premium payments from marital income.
- Example 1: One spouse has covered the other under health insurance paid for by marital assets. The other spouse is in poor health and can not afford alternate health care coverage. The court may order the first spouse to continue covering that spouse for a set time and/or give the ailing spouse a monetary award in order to get new coverage.
- Example 2: One spouse has a life insurance policy where the ex-spouse is to get survivor benefits. If marital income was used to make payments on the insurance, the spouse may be entitled to a portion of the benefits.

Settling Disputes in a Divorce Case with Property and Asset Division

If a spouse is not complying with the property division order or you want to change the division, you may go back to court to seek enforcement or modification. The court will then decide how to proceed.

However, the trial court's determinations won't be changed by a higher court unless the division was clearly unjust.

Help From a Minnesota Property Divorce Lawyer

Retaining a Minnesota property divorce lawyer is key to getting the fairest and most equitable result in the property division phase of a divorce. The lawyer can provide professional guidance, keep you informed of likely outcomes and help you present the best arguments to the trial judge handling the divorce.

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