How are Assets Divided in a Minnesota Divorce?
Dividing Assets in a Minnesota Divorce: What You Need to Know
Divorce is never easy—emotionally or legally. One of the most contentious and complex parts of the process is the division of assets. If you're considering divorce in Minnesota or are already in the process, understanding how property is divided can help you make informed decisions and avoid unpleasant surprises. In this post, we’ll walk you through how Minnesota courts approach property division in divorce, what counts as “marital” vs. “non-marital” property, how debts are treated, and what you can do to protect your interests.
Minnesota is an "Equitable Distribution" State
In Minnesota, property division in a divorce is governed by the principle of equitable distribution—not necessarily equal, but fair and just under the circumstances. This means that the court will divide marital property in a way that it deems equitable, which may or may not result in a 50/50 split. Practically, in most cases this means that assets will divided equally, or near-equally.
What Is Marital Property?
Marital property includes nearly everything that was acquired by either spouse during the marriage, regardless of whose name is on the title or account. Common examples include:
Homes and real estate
Vehicles
Retirement accounts and pensions
Bank accounts
Investments
Business interests
Furniture, electronics, and household goods
It doesn’t matter if only one spouse worked during the marriage—if an asset was acquired during the marriage, it’s likely considered marital property. There are some exceptions to this, including gifts to one spouse during the marriage, inheritances received by one spouse, and some other similar exclusions.
What Is Non-Marital Property?
Non-marital property generally includes assets that:
Were owned by one spouse before the marriage
Were inherited by one spouse, either before or during the marriage
Were received as a gift specifically to one spouse
Are excluded by a prenuptial or postnuptial agreement
However, it’s not always simple. If non-marital property is commingled with marital property—for example, if an inheritance is deposited into a joint bank account or used to buy a jointly titled home—it may become partially or fully marital. Calculating a non-marital interest in property or assets can often require a financial expert or attorney experienced in complex financial asset division.
The Court’s Considerations for Property Division
When dividing marital property, Minnesota courts consider several factors, including:
The length of the marriage
Each spouse’s contribution to the acquisition, preservation, depreciation, or appreciation of marital and non-marital property
Each spouse’s economic circumstances, including their income, employability, and future financial prospects
The age and health of both spouses
Importantly, Minnesota courts do not consider marital misconduct—such as infidelity—when dividing property.
What About Debts?
Just like assets, debts are also divided equitably. This can include:
Mortgages
Credit card debt
Auto loans
Student loans
Medical bills
A debt incurred during the marriage is generally considered marital debt—even if it’s only in one spouse’s name. However, if one spouse incurred debt for non-marital purposes (such as gambling or an extramarital affair), the court may assign that debt solely to that individual.
Retirement Accounts and Pensions
Many divorcing spouses are surprised to learn that retirement assets are subject to division. Contributions made during the marriage, along with any appreciation in value, are considered marital property—even if only one spouse contributed.
In many cases, the court will issue a Qualified Domestic Relations Order (QDRO) to divide a 401(k) or pension plan without triggering taxes or early withdrawal penalties.
Property Division Without Court Intervention
If you and your spouse are able to reach an agreement on how to divide your property, you can include those terms in a Marital Termination Agreement (MTA) or divorce decree. Courts generally approve such agreements as long as they are fair and lawful.
Working with an experienced attorney or mediator can help you reach an amicable resolution and minimize court involvement.
Protecting Your Non-Marital Property
If you have non-marital assets, it’s critical to:
Document your ownership clearly—maintain records showing when and how the asset was acquired.
Avoid commingling with marital funds.
Consult an attorney early in the divorce process to develop a strategy for protecting those assets.
The Role of Prenuptial and Postnuptial Agreements
If you and your spouse signed a prenuptial agreement or postnuptial agreement, those agreements will play a major role in how assets are divided—provided they are legally valid and enforceable under Minnesota law.
These agreements can predetermine what assets are considered non-marital and how marital property will be divided, saving time and reducing conflict during divorce.
Get Legal Guidance Early
Dividing property in a Minnesota divorce can be complex, especially when significant assets, debts, or business interests are involved. Mistakes can be costly and hard to undo.
That’s why it’s important to speak with a knowledgeable family law attorney early in the process. Whether you're negotiating a fair settlement or preparing for a court battle, the right legal guidance can make all the difference.
If you are involved in, or anticipate becoming involved in, a divorce in Minnesota, call divorce attorney John E. Roach for a free consultation.