When a couple elect to get divorced, the courts will see to it that there is equitable distribution in Minnesota of all joint property and obligations. Equitable distribution does not imply equal distribution; it implies fair distribution. The court’s rarely split assets and liabilities right down the middle; they look at the future potential finances of each spouse after the marriage is legally terminated. The court takes a flexible stance, and as a result it is very difficult to predict the outcome of equitable distribution in Minnesota.
Marital property vs., separate property:
The courts; when adjudging equitable distribution in Minnesota, takes into account both marital and separate property. Although both properties are taken into account by the court, only marital property will be distributed. The separate property is taken into account so the court can decide on the split of marital property. If one spouse has a lot of personal wealth and property, and the other spouse very little, the court may decide to give more of the joint property to the partner with less.
Separate property is seen by the courts as all that property acquired prior to or after the marriage. It also covers some things that were acquired while the marriage was intact, such as inheritances, third party gifts or agreements. As an example, if one or the other spouse had a home prior to the marriage, the home remains his or her property after marriage. Even though the home was sold after the marriage and the proceeds invested in stocks, the stocks remain a separate property as they were purchased with private money.
Any property which cannot be classified as being separate is, by default, marital property and subject to equitable distribution in Minnesota. Ultimate distribution of the marital property is subjective and often takes into account the time the marriage was healthy, the age of the spouses and their health. If one spouse is in very poor health and the outlook for future earnings is grim, the court may show an inclination to award the ailing spouse more. The earning ability of each spouse is very important to the courts when determining the split of marital property. As well as earning potential, the court takes into account the contributions to the marriage by each partner. If one spouse was a home-maker, this will be taken into account.
A last resort:
Courts are the only place where equitable distribution laws apply. Prior to judgment, it is suggested that spouses work out the distribution of marital assets either by themselves or through their attorneys. When the spouses take control, they are free to divide the property as they feel is right and just, however, if they cannot agree, then the courts will do it for them.
After equitable distribution in Minnesota takes place, often the assets granted end up for sale by History Bound, the web site that offers unique and unusual antiques and works of art. They also do appraisals for the court.