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Dividing Assets in a Minnesota Divorce: What You Need to Know About Property and Business Ownership
Dividing Assets in a Minnesota Divorce: What You Need to Know About Property and Business Ownership
Business Ownership
Dividing assets during a divorce is one of the most challenging parts of the process. In Minnesota, marital property is divided under the principle of equitable distribution—meaning assets are divided fairly, though not necessarily equally. For divorcing couples, understanding how assets, especially businesses, are handled is essential.
What Is Marital Property in Minnesota?
Marital property includes most assets acquired by either spouse during the marriage, such as:
- Real estate (homes, rental properties, land)
- Personal property (furniture, vehicles, jewelry)
- Financial assets (bank accounts, investments, retirement accounts)
- Debts accumulated during the marriage
Assets acquired before the marriage or received as gifts or inheritances are typically considered non-marital property, unless they’ve been commingled with marital assets.
How Is Marital Property Divided?
Minnesota courts divide marital property equitably, which focuses on fairness rather than an even split. Factors influencing division include:
- Length of the marriage
- Each spouse’s contributions (financial and non-financial)
- Future earning potential of each spouse
- Age, health, and financial circumstances
- Custody arrangements for minor children
Couples often avoid court battles by negotiating settlements with their attorneys’ guidance.
Dividing a Business in a Divorce
Business ownership can make property division more complex. Key considerations include:
- Is the Business Marital Property?
Businesses started during the marriage are usually marital property. A pre-existing or inherited business may be non-marital, but any increase in its value during the marriage may still be subject to division. - Valuing the Business
Accurate business valuation is critical and often involves financial experts to assess assets, debts, revenue, and goodwill. - Equitable Distribution
Instead of splitting ownership, courts typically resolve business division through:
- A buyout of one spouse’s share
- Selling the business and dividing proceeds
- Compensating the non-owner spouse with other marital assets
Impact on Spousal and Child Support
A business can significantly influence spousal maintenance (alimony) and child support. Courts consider the business owner’s income and financial circumstances to ensure fair support amounts.
Navigating Complex Divisions with Legal Help
Dividing assets, particularly businesses, requires financial expertise and skilled legal representation. At
Michael Fink Law, we help clients navigate these complexities, protecting their rights and working toward equitable resolutions.
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Disclaimer: The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute an attorney-client relationship.