Dividing Property: Essential Tips for Navigating Real Estate During a Minnesota Divorce
Navigating real estate during a divorce in Minnesota involves several critical considerations. Here are some key points to keep in mind:
Marital Property vs. Non-Marital Property: Minnesota follows the principle of equitable distribution, meaning assets acquired during the marriage are generally considered marital property and subject to division. Property owned before the marriage or acquired through inheritance or gift may be considered non-marital and could be retained by the original owner.
Valuation of Real Estate: Accurately determining the value of real estate is essential for ensuring an equitable distribution of assets. This often requires the expertise of a professional appraiser or an experienced Realtor®, such as Shannon Lindstrom, a Certified Divorce Real Estate Expert with specialized training in handling real estate matters in divorce cases. Both parties can agree on a single appraiser, or each may choose to hire their own to assess the fair market value of the property.
Division of Real Estate
There are several ways real estate can be divided:
Sale and Split Proceeds: Sell the property and divide the proceeds.
Buyout: One spouse buys out the other’s share, typically through refinancing.
Co-ownership: Rarely preferred due to potential future disputes, but it's an option.
Mortgage Considerations: If the property has a mortgage, it's essential to decide who will be responsible for payments during and after the divorce. Refinancing may be necessary to remove one spouse's name from the mortgage.
Tax Implications: Transferring real estate between spouses during a divorce may have tax consequences, such as capital gains taxes. Consulting with a tax advisor can help minimize tax liabilities.
Court Approval: If spouses cannot agree on how to divide real estate, a court may intervene and decide based on various factors, including each spouse's financial situation and contributions to the property.
Emotional Considerations: Real estate often holds emotional significance. Both parties should consider their emotional attachment to the property versus its financial implications.
Legal Assistance: Divorce involving real estate can be complex. It’s advisable for each spouse to seek legal representation to ensure their rights are protected and the division of property is fair.
Navigating these aspects demands careful attention to both financial and emotional considerations. Engaging professional guidance from a family law attorney, appraiser, financial advisor, and a Certified Divorce Real Estate Expert (an experienced Realtor®) can significantly streamline the process.
If you or someone that you know has real estate questions or wishes to discuss how I can help, please contact Shannon Lindstrom, Realtor® with RE/MAX Results and a MN Certified Divorce Real Estate Expert (CDRE®) serving the Twin Cities/MN at 612-616-9714 or visit www.ShannonLindstromRealtor.com today.
Shannon Lindstrom, Realtor®, CDRE®, CREDS, CRS, GREEN, MILRES, MRP, VCA
RE/MAX Results
7373 Kirkwood Court No, Ste. 300
Maple Grove, MN 55369
Direct: 612-616-9714
Lindstrom_S@msn.com
Shannon@ShannonLindstromRealtor.com
www.ShannonLindstromRealtor.com
www.ShannonLindstrom.info
www.TwinCitiesMilitaryVeteransRealtor.com
www.MNDivorceRealEstateExpert.com
