Family Law Updates

Lake Harriet Law Office is a sponsor at Divorce Camp 2024, which takes place September 26 – September 29 at Madden’s on Gull Lake.  The American Academy of Matrimonial Lawyers Minnesota Chapter organizes and plans Divorce Camp each year.

One of the most common questions for someone contemplating divorce is how will property and assets be divided?  Minnesota uses the concept of equitable division.

How will our property be split up?

During a divorce property is equitably divided.  While it’s easy to split the money in a bank account in half, dividing assets becomes more complicated with items such as houses, gifts, and debts.

• Houses and Real Estate: Parties in a divorce must decide whether one person is going to retain the house.  If the parties sell the house, they can then split the proceeds at closing.  If one party wants to keep the house they typically “buy out” the other’s portion of equity.  Getting a home appraisal is very helpful when one party plans to keep the house, especially during a robust housing market.
• Bank and Brokerage Accounts:  These accounts must be identified and placed on the balance sheet.
• Stocks and Bonds: Same concept as bank and brokerage accounts.
• Business Interests: If the parties own a business or businesses, a business valuation may be required, which is typically performed by a neutral CPA.
• Debts: Just as assets must be divided, debts must also be divided. A court may divide some debts equally between the parties but may apportion some debts to the person benefiting from the debt. For example, if one party is keeping the family car, the court will typically assign the loan to the person keeping the car.  Student loans and credit cards are also addressed in the division process.
• Qualified Plans and Pensions:  401k, 403b, IRA and other qualified plans are identified and valued.  Pensions are valued differently, and in some cases an actuary can assist with the present value calculation.
• Balance Sheet Preparation:  Each divorce case requires a well drafted balance sheet with CPA level of precision.
• Gifts & Inheritances: If one party wants to claim a gift or inheritance should not be divided at divorce, they must prove the asset is nonmarital (should not be divided by the parties in divorce). If an individual used the gift or inheritance during the marriage, for example put the money towards a mortgage during the marriage, the individual may have to prove through “tracing” what belongs to them.

Hire a Law Firm with Extensive Financial Acumen

At Lake Harriet Law Office, we provide strong legal representation for our clients who are going through divorce, and we use a data-focused approach to address the division of assets and debts.  Forensic accounting is helpful in many in cases.  If you are concerned about divorce and the related financial issues, please contact us to schedule a consultation.

Randall A. Smith – Managing Attorney         612-750-4843

Brianna Attamante – Student Attorney         612-223-8925

Whitny Fowlds – Student Attorney                612-223-8925