Many people assume that marital assets will be split evenly between divorcees. While this can happen in some cases, Minnesota law requires a division that is fair. However, what is fair is not always equitable.
How does equitable distribution work?
Under Minnesota Statutes Section 518.58, courts must divide marital property fairly when a couple divorces. Marital property includes assets and debts spouses gain during the marriage. It does not matter which spouse is responsible.
On the other hand, nonmarital property includes assets acquired before the marriage, as well as gifts given to one spouse. If a spouse claims property is nonmarital, they must show proof of where it came from.
Minnesota law also recognizes that both spouses contribute to a marriage. One spouse may earn most of the income. The other may care for children or manage the home. The court assumes both roles are valuable. This helps protect spouses who were not the main wage earner.
What factors do courts consider to determine equitable distribution?
Minnesota courts examine each divorce on a case-by-case basis to decide which assets should go to which spouse. To accomplish this, courts consider several factors. This includes:
- The length of the marriage
- Any prior marriages
- Age and health of each spouse
- Occupation, income, vocational skills and employability
- Estate, liabilities and financial needs
- Opportunity for future acquisition of assets and income
The court may also consider a spouse’s contribution as a homemaker, as well as their role in acquiring, preserving or increasing marital property.
What makes equity so important?
Equitable distribution gives courts flexibility. It allows them to adjust for unequal incomes or career sacrifices. For example, one spouse may have left work to raise children. If the court split everything equally, that spouse might face financial hardship later. A fair division accounts for future earning differences, ensuring each spouse receives a share of marital property that is both fair and just.
Ultimately, equitable distribution focuses on fairness. Courts determine equity through various factors. Strong financial records, proof of nonmarital sources and clear documentation of each spouse’s contributions can significantly influence the outcome.