PROPERTY/ASSET DIVISION: MINNESOTA DIVORCE
The issue of property division in a divorce can be very direct or very complex. If all property is "marital" then it is presumed that each spouse contributed equally to its creation and the general rule is that all marital property will be divided equally. However, the Court has significant discretion in that decision and does not have to make an equal distribution. All that is required is that the distribution be just and equitable under the circumstances.
"Marital" property is any asset that was acquired during the marriage with marital income or other marital assets. Property acquired during the marriage is presumed marital and a party is required to make a specific showing that certain property is "nonmarital". Nonmarital property is property owned by one person before or after the marriage, or acquired by one party by gift or inheritance during the marriage and kept separate from the other marital property. Property can be partially marital and partially nonmarital. A person is required to "trace" nonmarital property if they claim that assets acquired during the marriage originated totally or partially with their nonmarital property. Nonmarital property is usually distributed to the person who owns it.
The valuation of marital assets for purposes of division between the parties is one of the most litigated areas of divorce. This is particularly true where significant assets such as a business need to be valued.
As part of the divorce process, the parties also have to determine marital debt and allocate the responsibility for its payment between them. Debt incurred during the marriage, even if incurred by one person, is presumed to be marital. However, debt can be marital or nonmarital depending on its origin and this issue needs to be determined.
In the end, the normal goal in a divorce is that each party be granted an equal share of the total equity of the marital assets and assigned an equal share of the marital debt. In certain circumstances, where the position of the parties are unequal with respect to their ability to pay debt and/or to accumulate assets in the future, the court can award a party a disproportionate amount of the marital property, order one party to pay more of the marital debt and can even award a party some or all of the other party's nonmarital property.