Going through a divorce can be an emotionally and financially difficult time. When a marriage ends, one of the most complex issues to resolve is how to divide marital assets and debts equitably. This process is called property division.
While most marital property is divisible in divorce, some assets are considered separate in Minnesota. Understanding what can and cannot be split in your divorce case is crucial to protecting your rights and reaching a fair settlement.
Minnesota is an “equitable distribution” state regarding divorce asset division. This means that marital property is divided in a fair and just manner, though not necessarily equally. The court seeks to distribute assets proportionately to each spouse’s contribution to acquiring them.
The process of property division typically involves:
Both spouses are expected to complete a financial affidavit detailing income, expenses, assets, and debts. This helps provide a clear picture of the marital estate.
Minnesota Statute 518.003 subd. 3b defines marital property as anything acquired by either spouse during the marriage, with some exceptions. This includes:
Property acquired prior to the marriage or received by gift or inheritance during the marriage is generally considered non-marital property belonging solely to one spouse in Minnesota.
While most assets acquired during the marriage are divisible in a Minnesota divorce, there are some exceptions the court cannot split between spouses.
Any property brought into the marriage by one spouse is considered that spouse’s separate, non-marital property. This includes assets like:
Unless this separate property became commingled with marital assets during the marriage, it remains the individual property of that spouse and is not subject to division.
Gifts and inheritances received by one spouse from a third party during the marriage are also classified as non-marital property belonging solely to the recipient spouse. The court has no jurisdiction to divide gifts and inheritances in a Minnesota divorce. This includes assets like:
Notably, gifts given jointly to both spouses are generally considered marital property subject to division.
Under Minnesota Statute 518.003 subd. 3b. Any assets or property acquired by a spouse after the valuation date are considered non-marital property.
The valuation date is established as the earlier of:
So, any property or assets acquired after separation – such as income earned, gifts received, or property purchased after separation – belong solely to the acquiring spouse.
In Minnesota, the fact that property is only titled in one spouse’s name does not necessarily make it non-marital property. However, property titled solely in one spouse’s name acquired prior to marriage or received as a gift or inheritance may be considered separate property belonging only to that spouse.
Retirement assets like pensions and 401(k)s are generally considered marital property up until the valuation date. Contributions made after separation may be considered non-marital property that cannot be divided by the court.
When dividing marital property in a Minnesota divorce, the court must make an equitable division of only the marital assets and debts. Non-marital property is set aside for the owning spouse.
However, there are a few ways non-marital property may impact the overall divorce settlement:
While the non-marital property itself cannot be divided, the court has some discretion when handling non-marital assets to ensure an equitable outcome. Discuss any concerns about protecting non-marital property with an experienced Minnesota divorce lawyer.
In some cases, non-marital property can lose its status and essentially become marital property subject to division in a Minnesota divorce. This occurs if separate assets have been commingled with marital property to the point where they have lost their separate identity.
Some examples of commingling include:
Extensive commingling can make it difficult to trace non-marital assets and prove they should be excluded from the division.
The reality is property division often becomes a battle in contentious divorce cases. Spouses may fight relentlessly to get the largest share of marital property possible.
If you want to protect assets from your spouse in a divorce, some options include:
A Minnesota family law attorney can help build a strong case for protecting your separate property and obtaining a fair settlement. Don’t navigate a divorce without legal guidance.
The seasoned divorce attorneys at Martine Law have helped many Minnesota residents achieve favorable property division results. Our legal team will aggressively protect your rights and provide counsel each step of the way.
To discuss your situation in a free consultation, contact our Minneapolis office today. We have experience with all types of divorce cases and asset division matters. Call now to get representation on your side during this challenging time.
