Debt and Property Division in Minnesota
Every state has its own laws when it comes to dividing debt and property during divorces. If you are requesting a divorce in Minnesota, you may have questions about their specific laws and how that will impact you and your spouse in the divorce process. At Atticus Family Law, we’re here to help explain Minnesota’s procedures with this division and how this will affect you and your spouse.
What Is Considered Debt and Property?
Debt refers to anything that is owed by either spouse within the marriage. This debt includes any money or fees that need to be paid by the respective party. Debt can be linked to one spouse, or both spouses can have established debt together. Property refers to a wide range of items within marriage including any homes or vehicles. Depending on when the property was acquired, it may be considered joint property or personal property. For example, if a couple purchased a home together after they were married, this property would be considered joint property and would affect the court’s decision in the division. However, if it was purchased outside of marriage and the other spouse is not making payments towards the house, it would be considered non-marital.
How Does Minnesota Establish This Division?
In regards to debt, a couple can decide how they would like to split their debt between them. Oftentimes, couples can’t agree upon how this should be established and require the court’s intervention. If the debt was acquired together, known as marital debt, the court will most likely rule that the couple is equally responsible for paying off the debt. For debt that was acquired outside of marriage by one spouse, known as non-marital debt, the court typically rules that the individual pay off their respective debt. However, the court may also rule for equitable distribution, which labels the debt as the equal responsibility of both spouses. Debt division is dependent on the circumstances in which the debt was acquired, the requests of the spouses, and any other criteria that the court has established.
In regards to property, Minnesota law makes similar judgment calls to property as they do debt. For example, if one spouse owns property that was acquired before the marriage, they will still likely have ownership over that property. If the couple established property together, that would be considered marital property and the court would abide by the equitable distribution rule. In this instance, the property must be divided equally and fairly among the spouses. The court will deem what they seem as fair and try to abide by the requests of the couple, as well as what they see best.
For both debt and property, the division is not automatically divided 50/50. The court will establish what is considered marital and non-marital and make a decision that is best for the couple.
Contact Our Trusted Team Today
If you have questions regarding the division of debt and property in Minnesota divorces, contact one of our expert attorneys today. We look forward to speaking with you soon.