Marital vs. Non-Marital Property. October 24, 2018
Separating marital and non-marital property is especially complicated when dealing with earnings on business interests which have not yet been paid. The Minnesota Supreme Court offered some guidance on what is considered marital and what is considered non-marital when it affirmed a Minnesota Court of Appeals decision in October, 2018.
The case involved a situation where the future earnings of a business were negotiated during the marriage, although after the valuation date, and the earnings would be received after the divorce was final. The Court held that when marital property is sold after the district court's valuation date but before the dissolution of marriage, and the consideration for the sale is an amount paid at the time of the sale plus the contractual right to receive future amounts, all of the consideration is classified as marital property.
For the detailed analysis, please see the decision at the link below. For information about your personal situation, please contact us.