How Does Title Impact Property Division?

One of the more common questions I face from a potential client involves title to property - whether a car, boat, house, ATV, business, bank account or otherwise. They ask, "My spouse says that because my [insert the property interest] is not titled in my name, I am not entitled to any of it. Is that true?"

One highly unique aspect of family practice is the fact that the litigants, unlike basically all other lawsuits, often continue to speak with one another (and even live together) during litigation. Sometimes that can be productive - if the parties are discussing issues in good faith. Other times, one spouse is simply trying to play games and get inside the head of the other. My suggestion? Don't get your legal advice from your soon-to-be ex.

Here's the answer: Title to property is essentially meaningless in divorce court. Minnesota law defines marital property as anything accumulated by the parties during their marriage. Marital property is subject to equal division. The timing of the purchase, not the title, dictates the ownership interest for purposes of a divorce.

Of course, the law recognizes non-marital property, which is not subject to division. Non-marital property has a very specific definition. For the sake of this post, understand that nowhere in the definition of non-marital property is the concept of "marital title" addressed. Unless a piece of property was brought into the marriage by one spouse or received as a gift to one spouse but not the other during the marriage, the property at issue will likely be divided equally among the parties.

Short Sale & Foreclosure Boom: Minnesota Housing Market Hits Divorce Court

Yesterday, the Minneapolis Star Tribune published part one on a series outlining the deteriorating housing market in the Twin Cities. Written by Chris Serres, Jim Buchta and Glenn Howatt, Minnesota’s New Ghost Towns offers a surprising and depressing look at the current status of suburban real estate in Minnesota

We have seen a drastic shift in thinking over the last five years in terms of real estate and its sale during a divorce. Not long ago the concept of a short sale or foreclosure was rarely discussed (perhaps once in 300 divorces). In today's market, however, we frequently discuss with potential clients their options when their mortgage exceeds the market value of their property.

For most parties, dividing assets is the easier part of the equation. People are often eager to receive something of value. More and more, however, we are handling disputes that involve nothing but an allocation of debt. Many seem not to have the incentive to step up to the plate and take on their equitable responsibility under the law - leaving the other to incur more debt, in the form of attorney's fees, just to make things happen.
 

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Sole Physical Custody & Joint Physical Custody: Is the Presumption Going to Change in Minnesota?

Depending upon your point of view, you may or may not appreciate the fact that Minnesota law contains a presumption of sole physical custody. So many potential clients ask about that. I don't believe it is a question of whether the standard will change, but when the standard will change – based upon recent legislative activity and the progressive approaches that have been taken at the Hennepin County Family Justice Center in Minneapolis.

Fellow Minnesota divorce blogger Gerald O. Williams has published a nice article about the status of a bill in the 2008 Minnesota Legislature that relates to a modification of the sole physical custody presumption to a presumption of joint physical custody in divorce cases. The legislature has opted to refer the matter for a study.

This is certainly not the first time the legislature has looked at the issue. Part of the recent child-support reforms that were discarded was a new presumption of joint physical custody. It is evident that there are many, both in the public at large, and in the legislature, who believe it is time for a shift in thinking on this issue.
 

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How Much Will Divorce Cost Me?

We have the responsibility to tell every potential client that we “aren't sure.” Now...how's that for building credibility with someone who wants to entrust their life with you for a bit?

The truth is that we really don't know how much a divorce is going to cost in the end. An attorney who tells you they do probably isn't being up front with you. A host of issues beyond our control play a part in every case. Much depends on what county your case is filed in, what the mindset of the opposing attorney is, who the judge is in your case and what issues are contested.

Divorce cases tend to fall into one of two categories: contested and uncontested. Most contested cases become an uncontested case at some point. 
 

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Common Law Marriage in Minnesota

Minnesota does not recognize common-law marriage. Common-law marriage involves couples who treat each other as if they are married, hold themselves out as married and believe themselves to be married as a matter of law. Often, parties to a common-law marriage will refer to each other as husband and wife, share last names or file income tax returns together. Only 16 states (nearest being Iowa) recognize common-law marriages, and that number is shrinking.

In Minnesota, parties who live together are considered cohabitants rather than husband and wife. Unlike the marital dissolution statutes which provide that the parties shall fairly divide (usually equally) the property accumulated by both during the marriage, cohabitants who break off their relationship are awarded property directly in proportion to their financial contribution during the relationship. Such cases are civil actions, not family court actions.

Strange, however, during a time when more and more people are living together without marrying such a limited number of statutes that apply. Some argue the legislature has intentionally limited the law in this area to encourage people to get married, therefore maintaining some sort of perceived “ideal” society.

Given the practical reality, however, it seems more legislation must be drafted to protect those who have committed themselves in a long-term relationship yet failed to contribute financially as much as the other. They may have an expectation that differs greatly from the judgment received after the fallout of their relationship.
 

A Fundamental Choice During Divorce: Compromise or Stand Your Ground?

Every person going through divorce will face one fundamental decision time and again: Do I compromise or do I stand firm in my position? Certainly there are times for both. As often as possible, however, we recommend taking the high road and giving a little of yourself for the greater good of your family. This may not seem like good advice coming from a divorce lawyer. After all, isn’t it our job to stand and fight to the bitter end with sharp claws and gnashing teeth (have you seen those silly attorney yellow pages ads yet...the ones with growling grizzly bears and wolves featured prominantly)? Each case requires a little different approach.

At this point in time, compromising probably doesn't seem like the best thing to do for yourself. Nor is it the best for your lawyer's pocketbook. But, a lawyer who truly has your interests in mind will attempt to position your case for settlement and speak with you about how to approach a case in a sensible manner rather than unnecessarily drive up the costs of your case through contentious litigation. We often say that any fool (referencing the attorney) can turn a $3,000 case into a $30,000 case. Aggressive lawyering typically yields greater fees and much of the time it simply isn't necessary. 

Unfortunately, in some cases we can do nothing but litigate. We've been there many times and enjoy trying cases. This entry is not intended for parties who have been victims of severe domestic violence or whose children are in danger while in the care of their other parent. In those situations, and others, we must take a very aggressive approach. However, the vast majority of cases do not involve such situations and can be resolved much less expensively (in terms of dollars, time and emotions) in a manner that is consistent with what the court will ultimately do with the case if asked to decide. 

Consider how your soon-to-be-ex feels about things. Think about your children. Discuss solutions that work for everyone involved in the case, not just you. Most importantly, it is irresponsible to intentionally create or fuel ongoing conflict during a divorce. In our experience, clients who are bitter, angry and relentless in their approach wind up hurting themselves and living with much more pain than those who come to the table with a sense of flexibility and reasonableness. We find they are also far less satisfied with the legal process.

We are not suggesting the divorce process will be easy for you. Everyone knows that it is very difficult to make reasoned decisions in the middle of an emotionally charged situation. It is our job to help with that. We understand you may hurt because of infidelity, irresponsible spending on the part of your spouse or chemical dependency issues. But, the bottom line is that the court does not care about such things, unless they have a direct impact on the welfare of the children. For that reason, it is important to focus on the things that do matter to the ultimate decision-maker in your case.

We find the couples who resolve their case through settlement feel much better about the result. They own the agreement. They haven't been told what they are going to do some person in a black robe. They conclude their case in a much shorter time frame than expected. They have more financial resources to draw on in the future. And, most importantly, their children seem to benefit from the fact that their parents, despite the dissolution, have found a way to work things out. The experts agree that divorce is a very stressful and difficult time for the litigants. But, those same experts also agree that it is even more stressful and painful for children. The longer your case lasts, the more harm will be done to your children.
 

The Iraq War: Impacting Families Here at Home

The Minneapolis Star Tribune published an interesting article entitled "Strains of War Showing on Army's Soldiers, Equipment, Readiness to Fight." Pauline Jelinek of the Associated Press writes, "Though separate data reported on divorce rates appeared to be holding steady last year, soldiers say they are having more problems with their marriages due to the long and repeated separations."  Read the entire Minneapolis Star Tribune Article concerning military families and the effect the Iraq War is having.