No matter its size, your marital estate will be divided as part of the dissolution process.  The law calls for a “just and equitable” division, without regard to marital misconduct.  Generally speaking, Courts will make an effort to equally divide the estate (assets and liabilities).  There is plenty of case law, though, which provides that the division does not need to be mathematically equal.

The phrase “just and equitable” does provide the court with some wiggle room, and discretion.  Additionally, because Minnesota is a no-fault divorce state, “fault” cannot be a factor in dividing the estate.  In other words, if the husband was unfaithful to the wife, for example, the law forbids the Court from punishing the husband for this misconduct by awarding the wife with a greater property settlement.

Dividing Property and Debt Procedure

A common approach to property division issues in a divorce is to create a balance sheet.  The objective is to itemize the property, determine its value, and then place the property in either the husband or the wife’s column.  Continue in this manner until all assets and debts have been awarded.  The goal is to have an equal division at the bottom of the balance sheet.  If this is not possible, it may be necessary for one spouse to make an equalizer payment to the other spouse.  Depending on the assets in the case, this can be done by refinancing a mortgage on the house, or making a payment out of a retirement account.

Determining value is not always as easy as it sounds.  Assets like real estate, businesses, or pensions, may require appraisals.  Assets like checking and savings accounts are more easily valued simply by looking at account statements.  Additionally, the parties need to agree on the proper valuation date in determining the value of an asset.  In the absence of agreement to the contrary, the presumed valuation date is the date of the first pretrial hearing.  If the parties are negotiating a settlement out of court, they will need to agree on the appropriate valuation date.

Nonmarital Property and Debt Division

Issues like nonmarital property also need to be considered.  The court only divides marital property in a divorce – not nonmarital property.  Examples of nonmarital property are property owned before the marriage, or acquired during the marriage by inheritance or gift.  In order to be awarded property as nonmarital property, the spouse making the claim bears the burden of tracing the asset to a nonmarital source.

How We Can Help

We have experience negotiating property settlements four our clients, as well as arguing for our client’s rights at trial.  The emotional roller coaster of a divorce is hard enough without worrying about the various financial components.  Let us handle the property and debt division issues so you can focus on moving on with your life.  Contact the staff at Gadtke & Beyer, LLC today at 952-345-8004 or fill out a form on the side of the page.

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Have questions? Feel free to contact Gadtke & Beyer, LLC today. We offer free consultations to all potential clients - call today at 952-345-8004.