Dispute Resolution Services (DRS) : Topics to be Resolved : Non-Marital Assets
Under Minnesota law, each asset is considered marital – regardless of how it is titled – unless it falls under one of the categories in Minnesota Statute §518.54. A particular asset can be partly marital and partly non marital. According to law, a party seeking to claim that an asset is non marital must prove his or her claim. Such proof requires “tracing” the history of the asset and computing the non-marital value.
Definition of Non-Marital Assets
The five categories of non-marital assets under Minnesota Statute are:
- Property acquired as a gift, bequest, devise or inheritance made by a third party to one but not to the other spouse;
- Property acquired before the marriage;
- Property acquired by a spouse after the valuation date;
- Property excluded by a valid antenuptial contract [Pre-nup]; or
- Property acquired in exchange for, or the increase in value of, property described in categories 1-4 above.
Handling of Non-Marital Assets
Mediation clients may require strict tracing of non-marital claims. However, if the parties have the same recollection of the facts, they may agree that an asset is non marital without the necessity of proof.
Possible non-marital claims should be identified in mediation, so the parties can make informed agreements. Once identified, a party may choose whether or not to press a non-marital claim. In final settlement, such claims may also be traded against other assets. As a “back drop” to the clients’ consideration, Minnesota Statute §518.58 allows the court to divide non-marital assets “if it finds that either spouse's resources or property are so inadequate as to work an unfair hardship".
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