Two Minnesota cases highlighted an issue regarding interest rates on judgments: Redleaf v. Redleaf, 807 N.W.2d 731 (Minn. App. 2011) and Soeffker v. Soeffker, No. A12-0211 (Minn. App. Nov. 19, 2012). These cases held that a 2009 amendment to the interest judgment statute, Minnesota Statute §549.09, required courts to set interest at 10% for property settlement money judgments (Redleaf) or property division equalizers (Soeffker) in excess of $50,000.
The new law addresses this problem by exempting family court property settlement judgments in excess of $50,000 from the 10% interest rate. It also provides that courts are authorized to award interest at the standard judgment rate. Further, it provides that the court can award a lower interest rate or no interest rate at all if a finding of unfair hardship is made.