Dividing Assets in a Minnesota Divorce: What You Need to Know About Property and Business Ownership
January 16, 2025
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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Is Hiring an Attorney Worth It for Family Law Issues in Minnesota? Family law matters are often emotionally charged and legally complex. Whether you're dealing with divorce, child custody, spousal support, or property division, these issues can have a long-lasting impact on your life. In Minnesota, hiring an experienced family law attorney can be a crucial step in protecting your rights and achieving the best possible outcome. But is it worth it? Here’s why hiring an attorney is often a wise investment.  Navigating Minnesota's Family Law System Minnesota’s family law system involves a variety of rules, deadlines, and legal procedures that can be difficult to navigate without professional guidance. An attorney ensures that all paperwork is filed correctly and on time, avoiding unnecessary delays or complications that could jeopardize your case. For example, Minnesota follows an "equitable distribution" system for dividing marital property, which requires an understanding of what is considered marital versus non-marital property. An attorney can help ensure a fair distribution that reflects your interests. Protecting Your Rights in Divorce and Custody Cases Divorce and child custody cases are among the most contentious family law issues. Minnesota courts prioritize the best interests of the child in custody cases, and having an attorney can help you present a strong case to protect your parental rights. Additionally, in divorce cases, an attorney can: Negotiate spousal support (alimony) terms. Ensure accurate valuation of assets. Advocate for a fair division of debts and property. Without legal representation, you may risk agreeing to terms that aren’t in your favor or missing opportunities for a better resolution. Understanding Spousal Support Laws in Minnesota Spousal support, or alimony, is not automatically granted in Minnesota. The court evaluates factors like the length of the marriage, each party’s income, and their ability to be self-supporting. An attorney’s knowledge can help you either secure or challenge a spousal support order effectively. Avoiding Costly Mistakes While hiring an attorney may seem like a significant expense upfront, not hiring one can lead to costly mistakes. Missing deadlines, misunderstanding legal terms, or agreeing to unfavorable settlements can have long-term financial and emotional consequences. An experienced attorney ensures that your case is handled thoroughly and with your best interests in mind. Negotiating Settlements and Representing You in Court Family law cases often involve negotiations to reach an agreement outside of court. Attorneys have the skills to negotiate effectively on your behalf, ensuring that your voice is heard and your needs are met. If your case does go to court, having a knowledgeable attorney by your side is invaluable in presenting your case to a judge. Peace of Mind Family law issues are stressful, and trying to handle them on your own can add to the emotional burden. By hiring an attorney, you gain peace of mind knowing that a professional is handling the legal complexities, allowing you to focus on moving forward with your life. Is Hiring an Attorney Worth It? When it comes to family law issues in Minnesota, hiring an experienced attorney can make all the difference. From protecting your rights to navigating complex legal processes, an attorney provides the expertise and advocacy you need during challenging times. If you’re facing a family law matter, don’t navigate it alone. At Michael Fink Law , we’re dedicated to helping clients achieve the best outcomes. Contact us today to schedule a consultation and learn how we can assist you.
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