Adam J. Blahnik, a Minnesota divorce and family law legal representative, explains how Minnesota is considered a common law property State (or marital property State) as opposed to a community property State. He then information the distinction between “marital property” and “non-marital property” in Minnesota.
You find yourself either considering divorce, or in the middle of a divorce in the State of Minnesota, and need to understand what your rights are with regard to all the individual and real property owned by you or your spouse.
This short article will touch on the “ins and outs” of property department in divorce procedures consistent with the laws of the State of Minnesota. There are 2 completing doctrines amongst the numerous Sates in this country on how property rights are vested to couples, – “typical law property” states and “community property” states. Minnesota is considered a common law property state (or “marital property” state) when it concerns property rights throughout the marital relationship. In the United States, there are 10 States that are considered “neighborhood property” states, that include: Alaska, Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin. This post deals specifically with common law property rights within the State of Minnesota.
As a Minnesota divorce lawyer, it is vital to satisfy completely with divorce clients to ascertain all the property interests owned by the divorce customers and the “character” of those property rights. All property will be classified as either “marital property” or “non-marital” property. There is a presumption in the law that all property is marital. Therefore, it becomes the concern of the party attempting to categorize the property as non-marital to come forth with the essential proof and proof to think about the property non-marital.
So– what the heck am I discussing? What do I indicate by marital property? … and non-marital property?
Per Minnesota divorce laws, all marital property shall be divided equitably between the divorcing partners. Marital property consists of all property owned by the partners that is not otherwise classified as non-marital property as described below. To “equitably divide” the marital property does not always imply to divide the property 50-50 between the spouses. However, in the bulk of the Minnesota divorce cases, this is precisely what happens. But, if there is a big disparity in the spouse’s incomes, the Courts may award to the lower wage earner a greater portion of the marital property.
So, what is non-marital property? In Minnesota, non-marital property consists of any property that a spouse owned prior to the marriage; that a spouse inherited at anytime, either prior to or throughout the marital relationship; or any property that was talented straight and solely to one of the partners (other than for gifts from the other spouse). If property is classified as non-marital, then that spouse is entitled to all of such property, without needing to divide any portion of it with the other spouse.
To prove the non-marital character of concrete personal effects is many times not that tough. However, when we are handling numerous checking account, retirement accounts or investment accounts, things get a little more difficult. The spouse must correctly and thoroughly “trace” the non-marital funds from their beginning through the date of divorce. If the non-marital funds are commingled with marital funds, then that has the result of converting all the funds to marital funds. Therefore, it is really essential that the holder of non-marital funds maintain such funds in a separate account … however, it may not be the most pleasant conversation to have with your spouse when you discuss why you are keeping the funds in a separate account: “Honey– I am simply keeping the cash in a different account, so in case we get separated I will get to keep all the cash.”
Similarly, if a partner has a non-marital claim in genuine estate, it can be hard to trace such a claim. This comes about when one partner owns a home prior to the marriage, which has equity, then the parties offer that house and utilize the profits from the sale as a partial deposit towards the brand-new house, etc and so on.
There are many elements that come into play with this– a lot of to discuss in this post. Nevertheless, it should be kept in mind that when computing a possible non-marital claim in property, the Courts recognize “active appreciation” (i.e. appreciation of the property due to enhancements) with “passive gratitude (i.e. appreciation of the property due to market forces). Further, if at any time throughout the course of owning the real property, the real equity in the property is lowered to no, then this has the result of eliminating any non-marital claim that may have existed.
As you can see, it can become quite complex and complicated in identifying and establishing whether any non-marital property exists as part of the marital relationship. It is always really essential to speak with a qualified Minnesota divorce lawyer to discuss your rights in the Minnesota divorce proceeding.