How is property divided in a divorce?

A: Minnesota law provides that property in a marriage dissolution is to be divided “equitably,” which often means that assets are divided equally. Marital property can include real property such as homes and cabins; personal property such as bank accounts, retirement plans, household goods, cars and even pets; and business interests, such as stock in publicly-traded or closely-held corporations. The difficulty in dividing marital property is determining the value of each asset.

All property is presumed to be marital, unless a party can show that it is non-marital. Property owned prior to a marriage and any increase in the value of that property is considered “non-marital” property. Other examples of non-marital property include inherited property or property that was a gift to one party alone during the marriage. Non-marital property is not usually divided between the parties unless the Court finds that one party will suffer an extreme financial hardship if he/she does not receive a portion of the non-marital property. Determining whether property is marital or non-marital can be complicated and usually requires the assistance of an attorney and sometimes an accountant.