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A Strong Advocate For The Division Of Marital Property

Q: What happens to retirement accounts and pensions in a Minnesota divorce?

401(k)s, IRAs and pensions may be subject to division during a divorce in Minnesota. Even if the account is in only one spouse’s name, funds accumulated during the marriage are generally considered marital property and may be divided under equitable distribution rules. If division of the account is necessary, a qualified domestic relations order (QDRO) can allow retirement assets to be split without early withdrawal penalties or immediate tax consequences.

Q: How do spouses divide credit card debt when they divorce?

Credit card balances accrued during the marriage are typically considered part of the marital estate. Both joint and individual credit card debts may be included, depending on when the debt was incurred. Spouses may negotiate how to divide responsibility for the debt, sometimes balancing debt responsibility with the distribution of other marital property.

Q: Is my inheritance or a gift from a family member my separate property?

In Minnesota, inheritances and gifts from someone other than your spouse are generally considered separate property if you can document their origin. However, these assets may become marital property if they are commingled with marital assets, such as depositing inherited funds into a joint account or adding your spouse to ownership of the asset.

Dividing property can be one of the most complex and contentious aspects of a divorce. Clients who come to the Law Office of Barbara J. Gislason often have many questions about what property, cash, and investments they will be left with when the divorce is finalized. With more than 30 years of experience practicing family law in Minnesota, Barbara has the skills and resources required to efficiently guide you through the property division process.

Because there are disputes about whether assets are marital or nonmarital, and disputes about how to calculate the value of experts, Barbara works with a variety of professionals to help with legal issues such as tracing or securing an actuarial value for a pension. Experts are also used to deal with complex retirement assets.

Navigating Complex Property Division Issues

Minnesota is an equitable division state, meaning all assets acquired during the marriage, referred to as “marital assets,” will be divided fairly between the divorcing couple. The court has considerable discretion on this topic, and Barbara will work hard to achieve a positive result for you. Only a lawyer with extensive experience handling divorce cases in Minnesota will be familiar with the complexities of the property division laws in our state. Barbara has represented more than 3,000 clients in a range of divorce and family law matters, making her uniquely qualified in this legal field.

Barbara diligently analyzes your finances and assets to determine the value and extent of all marital assets. She may work with outside experts, including forensic accountants, actuaries, and appraisers to identify premarital assets and uncover any hidden assets.

Examples of common marital assets include:

Real estate, including the marital home
Cars, trucks, boats, and other motor vehicles
401(k)s, pensions, and IRAs
Pets/companion animals

Dividing property can be especially challenging if you and/or your spouse are facing unique financial issues, including when your home, after the payment of mortgages, has negative equity, also known as being “under water,” or if a parent has passed away and you stand to inherit assets that are currently tied up in probate, or if involved in a business dissolution (or anything related to business). In these special circumstances, hiring a knowledgeable family law attorney is critical to ensure that the division of marital property is equitable.

Pets and Companion Animals

Most people are unaware that the award of a companion animal, such as a dog or cat, is not addressed in Minnesota statutes or the judge made common law, and courts may treat animals as property. Barbara is a foremost expert on this subject in the country and can help you understand the hierarchy for how decisions are made if you have this kind of case. She encourages the courts and ADR/mediation providers to consider the best interests of both humans and companion animals, together with traditional criteria.

Frequently Asked Questions About Minnesota Property Division

If you worry about how divorce could affect your finances, you are not alone. The better you understand the basics of equitable property division, the easier it becomes to set and achieve property division goals.

What happens to retirement accounts and pensions in a Minnesota divorce?

401(k)s, IRAs and pensions are potentially subject to division when you divorce. Even if the retirement account is solely in your name or your spouse’s name, any funds accumulated during marriage are subject to equitable distribution rules. You can determine the marital value of retirement accounts and pensions and then negotiate property division arrangements that do not require the division of the account.

If you must divide the account to achieve a fair settlement, a lawyer can assist with the creation of a qualified domestic relations order (QDRO). If you properly execute a QDRO, it is possible to divide pensions and tax-deferred retirement savings accounts without early withdrawal penalties or income tax complications.

How do spouses divide credit card debt when they divorce?

Credit card balances accrued during the marriage are part of the marital estate. They can have a profound impact on the outcome of equitable distribution proceedings.

Both joint and individual credit cards may be part of the marital estate. The date when you or your spouse took on the debt generally determines if the obligation is marital or separate, rather than the name on the account.

You might agree to accept responsibility for more marital debt to justify the retention of more marital property. You might also want to consider working with your spouse to pay off credit card debts using marital property. Doing so helps ensure that there are no future financial complications caused by your spouse defaulting on payments or filing for personal bankruptcy.

Is my inheritance or a gift from a family member my separate property?

Yes, your inherited property and gifts from someone other than your spouse could be your separate property. State law allows each spouse to retain personal gifts received from third parties and any inherited resources, provided there is documentation of the assets’ origins.

The primary exception to this standard involves claims of commingling. If you deposit inherited money into a joint financial account or add your spouse to ownership paperwork for assets you receive as gifts or part of an inheritance, they may then be able to claim that those assets are part of the pool of marital resources.

Trust Divorce Lawyer Law Office of Barbara J. Gislason to Protect Your Financial Interests

To benefit from a highly experienced Anoka County property division attorney, call the Law Office of Barbara J. Gislason at 763-220-2983 or email the firm to arrange a consultation.