Legal Question in Family Law in Minnesota

Re: Divorce with Real Estate & Business

Thank you for your very challenging question, which raises a tremenduous number of issues. This would clearly require a rather careful assessment, and a careful review of the facts. But perhaps this will help get you started.

You first need to be aware that the name in which property is held (whether in his name individually, or with you jointly) has far less significance than you may imagine. The law presumes that all assets acquired during the marriage are marital property, regardless of the name in which they were acquired. Further, debts are usually considered "marital," regardless of which party incurred them.

Further, the law does not ordinarily allocate gains or losses to one or another party because one party was more or less responsible for the business, or for the management of the asset. This does not mean the conduct of the parties is irrelevant, but that it is not determinative. If one party operates a business, for example, and it fails, it is the parties' joint loss. The court does not, in effect, assess blame for a loss to one or another party, and penalize that party by making him or her take a larger share of the debt (absent fraud or other unusual circumstances).

From the information contained in your letter, I would strongly discourage you from attempting to resolve this matter without an attorney representing you. Further, I would not be inclined to recommend mediation, unless you have a more or less equal understanding of the finances, and feel you can "hold your own" in negotiations with your husband. This is not to say I encourage litigation, but instead, that there are good reasons for separate representation. Mediation presumes the parties have more or less equal access to information, can communicate effectively, and have similar "emotional" strength (for lack of a better term). Many of those things are missing at the time of a divorce. Indeed, an inability to communicate on an equal footing is often a contributing factor to a divorce in the first place. Mediation in those circumstances can be difficult, and risky.

You can certainly feel free to contact me should you require additional information. My contact information is below.

Avoiding attorneys may appear to save money in the short term, but it would be worth your while to get proper legal advice -- since the long term problems can be far more costly.

Good luck.

Re: Divorce with Real Estate & Business

As a general rule, the court would value the business as part of the divorce. The value of that business is a marital asset. If the business has a negative value, the liability os also a marital debt. That does not necessarily mean that assets and debts are divided equally. The business may be more important to your spouse. If he wishes to retain his livelihood, it has a value and that value may offset the purported debt.

It is likely that a business evaluation should be performed. At a minimum, the business records should be reviewed by an accountant. there are many ways to hide value in independently owned busiensses.

For a consultation call 952.746.2122.