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Owatonna, and Northfield,
Minnesota, Area
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Equitable Property Distribution (Real & Personal)

Two Types of Property

Under Minnesota Statutes, there are two types of property:  marital and non-marital.  Marital property includes all property acquired during marriage.  Examples of marital property include, but are not limited to, the following:

•  Retirement Accounts (Vested or Non-Vested)
•  Pension Benefits
•  Military Retirement Pay
•  Annuities
•  Life Insurance Policies (Cash Surrender Values)
•  Limited Partnerships
•  Stocks
•  Bonds
•  Certificates of Deposit
•  Deferred Compensation
•  Contracts for Deed
•  Personal Injury Claims
•  Real Estate
•  Personal Property
•  Household Goods
•  Animals
•  Pets
•  Gems or Other Valuable Minerals
•  Vehicles
•  Campers
•  Boats
•  Snowmobiles
•  Restitution of Debts Incurred to Enable one
   Spouse to Obtain an Educational Degree to
   the Extent that the Monies can be Attributed
   to Familial Support

Non-marital Property
Non-marital property is generally that which was owned prior to marriage or acquired during marriage through a gift in the party's own name from a third party or inheritance.  Non-marital property also includes certain property acquired during marriage but subsequent to the initiation of a dissolution of marriage action.  Non-marital property can include property, which is exchanged from one asset into another asset form.  It may include property excluded under an antenuptial contract.

Non-marital property claims can be significant.  The burden of proof that certain property is non-marital is upon the party claiming the non-marital asset.  Normally, non-marital property would not be awarded to the adverse party.  However, Minnesota Statutes permit the Court to invade a party's non-marital property upon occasion.  Up to one-half (˝) of non-marital property may be awarded to the adverse party in order to avoid undue hardship.  Moreover, non-marital property which consists of household goods and furniture can be awarded to the adverse party.

Marital Property

Generally, Courts have broad discretion in making a "just and equitable" division of marital property.  Marital misconduct is not relevant to property distributions under Minnesota Statutes.  Property settlements are final and are generally not subject to amendment. 

The Court will attempt to divide property in an equitable manner.  However, equitable does not necessarily mean "equal." Factors considered by the Court in distributing property include whether one spouse contributed more than the other to the acquisition of an asset; what contribution a party made as a homemaker; a party's misconduct with respect to property, which could include the waste of assets; and finally, the special needs of either spouse.

Equitable Homestead Property Dissolution
Services
Equitable Homestead Property Dissolution
Homestead
The homestead can be awarded by the Court to either party in the course of a dissolution of marriage. The Court can order the sale of the property.  The Court can permit the custodial spouse to remain in the home until the children reach the age of majority.  The Court considers a number of factors, including whether the retention of the homestead would serve the best interests of the children; the financial condition of the parties; and the cost of maintaining the homestead. 

Debts

The Court has no specific statutory authority to allocate debts.  However, Courts have traditionally viewed debts as a form of "property."  The Court can order either party to pay all or a portion of the parties' marital debts.  Factors frequently considered by the Courts in allocating debts are:

    1.  Who incurred the debt.
    2.  Who benefited from the debt.
    3.  When the debt was incurred, either prior to marriage, during the marriage, or after the date of
         separation.
    4.  Whether the debt was secured by property and who has possession of the property.
    5.  Who has custody of the children and that individual's income, assets and needs.

The Court's allocation of debts between the parties generally doesn't impact the rights' of creditors. 

Attorneys' Fees

In general, a party must pay his or her own attorney fees and litigation costs.  However, in dissolution proceedings, attorney fee awards are permitted in certain circumstances.  Minnesota Statutes provides for an award of attorneys' fees, costs, and disbursements in an amount necessary to enable the party to carry on or contest the proceeding.  The Court must find that the fees are necessary for the good faith assertion of the party's rights in the proceeding and that the party will not contribute unnecessarily to the length and expense of the proceeding.  The Court must also find that the party from whom fees, costs, and disbursements are sought has the means to pay them and that the party to whom fees, costs, and disbursements are awarded does not have the means to pay them.  In addition, the Court may award, in its discretion, additional fees, costs, and disbursements against a party who unreasonably contributes to the length or expense of the proceeding.  An award of fees, costs, and disbursements may be awarded by the Court at any point in the dissolution of marriage proceeding. 

There are other bases for fee awards available in dissolution actions.  If a party engages in bad faith, Minnesota Statutes provides for an award of fees. 

DISCLAIMER


The information set forth herein is not legal advice.  It is general legal information.  It may or may not apply to your individual circumstances.  Please consult with an attorney to obtain specific legal advice and counsel.

Consult our Lawyer when you need an attorney for Family Law, Estate Planning,
Negotiation Strategy, and Mediation Services in Faribault, Minnesota.