You and your spouse might own a vacation home or inherited land in another state. However, in the event you get a divorce, it is not immediately clear what happens to these properties. This raises an important question: can courts in Minnesota actually divide property beyond its borders?
How Minnesota courts divide properties in other states
Minnesota courts have the power to divide any of your marital property, which is property you jointly own with your spouse. When courts do so, they use equitable distribution. This refers to the process of giving each spouse a share of property that is fair and just, instead of equal. This also applies to out-of-state property.
Keep in mind that courts usually cannot change title to out-of-state real estate. Only the state where the land sits can control a property’s records. Though courts do not have jurisdiction over real estate beyond Minnesota, they can order spouses to take action. Actions a court might require you to take to divide out-of-state property include:
- Signing deeds or transfer documents
- Selling your property and dividing the money with your spouse
- Buying out your spouse’s share of a property you co-own, or vice versa
In practice, this means the divorce decree may require one spouse to transfer ownership, but an additional step is needed to make it official in the state where the property is located. It is also worth remembering that if you or your spouse refuse to cooperate, the court can enforce an order by holding you in contempt.
Depending on the state, you may also have to fulfill certain requirements. When this occurs, you will need to complete follow-up steps in the state your property is in. Common requirements include signing, witnessing or updating a local land records office.
Steps to ensure a fair property division
One of the most important factors when it comes to determining the equitable distribution of property during a divorce is evidence. Identifying marital property and gathering financial records such as mortgages and taxes can also help Minnesota courts determine what each spouse is owed.
Working with an attorney to help you create clear transfer terms in your divorce agreement, preventing disputes. This way, both parties in a divorce can walk away with a fair share of assets, which can allow you to move forward with your life with more financial stability.