Going through a divorce is challenging, and understanding how your property will be divided can be one of the most stressful aspects of your divorce. In Minnesota, the division of property follows specific guidelines that both parties should understand before beginning the divorce process. At AMS Mediation, we help couples navigate this complex process with compassion and expertise.
Minnesota’s Equitable Distribution Approach
Minnesota is an “equitable distribution” state, which means that marital property is divided fairly—but not necessarily equally—between spouses during divorce. The court considers various factors when determining what constitutes a fair division, including:
• Each spouse’s age, health, skills, and employability
• Each spouse’s contribution to acquiring marital property (including as a homemaker)
• The length of the marriage
• Each spouse’s financial circumstances and needs
• Whether either spouse wasted or dissipated assets during the marriage
Understanding these factors can help you form realistic expectations about property division outcomes.
Marital vs. Non-Marital Property
A fundamental concept in Minnesota property division is the distinction between marital and non-marital property.
Marital property typically includes assets acquired during the marriage, regardless of whose name appears on the title. This can include your home, vehicles, retirement accounts, investments, and even businesses started during the marriage.
Non-marital property generally includes assets owned before the marriage, inheritances or gifts specifically given to one spouse, and property excluded by valid prenuptial agreements. These assets typically remain with the original owner.
However, the lines between marital and non-marital property can blur when assets are commingled or when non-marital assets appreciate during the marriage due to the efforts of either spouse.
The Benefits of Mediation in Property Division
While the court system has established guidelines for property division, couples often find that mediation offers significant advantages when addressing these matters:
Customized Solutions: Through mediation, you can create division arrangements that address your specific needs rather than relying on standardized court formulas.
Reduced Conflict: The collaborative nature of mediation helps minimize antagonism, making the process less emotionally taxing and more productive.
Cost Efficiency: Mediation typically costs significantly less than litigation, preserving more of your assets for your post-divorce life.
Privacy: Unlike court proceedings, mediation sessions remain confidential, keeping your financial matters private.
Faster Resolution: Mediation usually resolves property division issues more quickly than court proceedings, allowing you to move forward sooner.
Common Property Division Challenges
Even with Minnesota’s guidelines, several complex issues can arise during property division:
Business Valuation: Determining the value of a family business requires specialized expertise to ensure fair treatment.
Retirement Accounts: These often represent significant assets requiring careful division through Qualified Domestic Relations Orders (QDROs).
The Family Home: Deciding whether to sell or have one spouse maintain ownership often involves emotional and financial considerations.
Hidden Assets: Unfortunately, some spouses attempt to conceal assets, requiring thorough financial discovery.
How AMS Mediation Can Help
At AMS Mediation, we specialize in guiding Minnesota couples through the property division process with clarity and fairness. Our mediators have extensive experience helping clients:
• Identify and categorize marital and non-marital assets
• Obtain accurate valuations of complex assets
• Develop creative solutions for challenging property issues
• Create comprehensive agreements that protect both parties’ interests
Our goal is to help you achieve a fair division of property while preserving as much of your financial well-being as possible for your future.
Understanding Minnesota’s property division laws is the first step toward navigating your divorce successfully. By working with experienced mediators, you can approach this process with confidence and peace of mind, knowing that your financial interests are being protected while working toward an equitable resolution.
Contact AMS Mediation today to learn how our divorce mediation services can help you navigate property division in your Minnesota divorce.
