Marital Property Marital Property and Liabilities are those obtained during the marriage and up to the statutory valuation date. Minnesota recognizes non-marital property to be: (i) the property which was obtained prior to the marriage; (ii) inheritances to an individual and not to the couple; and (iii) certain parts of personal injury recoveries. While the marital property is divided, the non-marital property is usually assigned to the person who owns it. It must be traced from its original receipt as non-marital to its current status and location. Non-marital property, if co-mingled with marital property, can lose its non-marital status. Issues often arise as to the value of assets, the amount of debts and if they are marital or non-marital.
Marital Property Division. In a divorce the court awards each party his or her fair share of the marital property. In order to successfully get your share you need to know what marital property is in your marital estate. The values of the assets as of a specific valuation date are tallied and the division is made. In order to value the assets and get a fair share an inventory is necessary. You can use our Intake Form referenced above, to begin your inventory. Before a break up, the information about assets and liabilities may be more available than after breaking up when one party may feel a need to be secretive about what there is. Copies of account statements and bills are useful for these purposes.
Marital Debt Division. In a dissolution proceeding, the Court will apportion the marital liabilities in an equitable manner based on the nature of the debt, the various other debts available to apportion, and the ability of each party to pay debt. The values of the assets as of a specific valuation date are tallied and the division is made.
The debts that were apportioned in a divorce are sometimes not dischargeable in bankruptcy if apportioned in a dissolution proceeding. An ex-spouse may need an attorney to make and Objection to Discharge in the Federal Bankruptcy Court if the other ex-spouse is filing bankruptcy. Creditors are not bound by divorce decree and can collect from whichever spouse they wish if both are on the account.
Marital Property Valuation Date In order to avoid double counting or missing assets, the law provides for a valuation date for the valuation of all marital assets. If the court does not make special findings and rulings on this issue, that date is the date of the first scheduled pre-trial court appearance. In Hennepin County and possibly others in the future, the valuation date is the date of the first scheduled Initial Case Management Conference (ICMC).
|