Legal Question in Family Law in Minnesota

Community property - Home ownership before marriage

I understand that in Minnesota a couple involved in a divorce are each entitled to 50% of all assets. In a case where one of the parties had equity in their home before the marriage of 15 years, is the other party entitled to 50% of the entire equity at the time of dissolution, or only of the amount of increased equity durring the marriage? There were no prenuptual agreements written. Thank you!


Asked on 8/26/99, 10:52 am

1 Answer from Attorneys

Re: Community property - Home ownership before marriage

The marital estate (property divided in a marriage) only includes assets acquired during the marriage.It explicitly excludes property thath either party owned before marriage, personal injury awards, inheritance, and gifts to one, but not both parties. In the example you describe, there is a formula called the Schmitz formula, for determmining the marital protion of the homestead equity. The proportion of the equity in relation to the value of the value of the homestead on the date of the marriage should be the same proportion at the time of divorce. This however changes and a portion if not all of the nonmariytal equity may be lost if the home is refinanced for an amount greater than the existing mortgage during the marriage; or if tsignificant repairs and impprovements are effected increasing the homestead value.

For information on these nad other issues, contact the Beaulier Law Office or stop by our web page at divorceprofessionals.com.

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Answered on 8/26/99, 8:50 pm


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