As you go through a divorce in Minnesota, one of the most challenging aspects to deal with is sorting out the division of assets. There are several factors that come into play when dividing rental properties during a divorce. If you both own rental properties, it can complicate the entire property division process. This article will give you an overview of how rental properties are handled in a Minnesota divorce.
Identify Rental Properties Owned By Each Spouse
The first step in dividing rental properties is identifying who owns the properties. If you are both on the title, it is considered joint property, and each of you owns half. If both of you own multiple rental properties, it can complicate the process, especially when it comes to determining the value of each property.
Classifying Rental Property As Marital or Separate
In Minnesota, marital property is divided equally between both spouses during a divorce. Separate property is owned by one spouse only, and it’s not subject to division.
If you or your spouse owned rental properties before marriage, they are considered separate property, and their value usually isn’t divided during the divorce. However, if rental properties were acquired during the marriage, they are classified as marital property and subject to division during the divorce. Both spouses share the value of the rental properties equally.
Determining The Value of Rental Property
The next step is to determine the value of rental property that is considered marital property. The value can be determined through a professional property appraisal by a licensed property appraiser.
Equitable Distribution of Rental Properties
Once the value of the rental properties is determined, it’s time to equitably divide it. It’s not always split equally down the middle. Courts consider several factors when dividing property, including:
- The length of the marriage
- Contribution of each party to the rental properties
- Earning capacity of both spouses
- Age and health of both parties
- Financial obligations of both parties
Factors That Can Affect Rental Properties After Divorce
If the property is going to be put on the market, it’s best to sell as soon as possible. If it’s rented out, it is vital to come to a decision about who will manage the property, who will collect rent, and how repairs will be handled. Additionally, parties must decide how property taxes and mortgage payments will be divided.
Conclusion
Dividing rental properties equitably between both parties can be a long and stressful process. That’s why a couple must work with an experienced divorce attorney thoroughly. An attorney can help protect your rights and interests while guiding you through the complexities of divorce. This article serves as a starting point to understand how rental properties are handled in a Minnesota divorce.