Introduction
One of the most emotionally and financially challenging aspects of a divorce is deciding who gets the house. In Minnesota, your home isn’t just a place—it may represent stability, memories, and your largest asset. So, how does the court decide who stays and who moves out?
This blog will walk you through how Minnesota handles home ownership during divorce, whether you’ll need to sell, and what to do if both parties want to keep the home.
Minnesota’s Approach to Property Division: Equitable, Not Equal
Minnesota is an equitable distribution state, which means the court divides marital property in a way that’s fair, though not necessarily 50/50.
This applies to all marital assets, including your house. If the property was acquired during the marriage, it is usually considered marital property and is subject to division. However, if the house was owned by one spouse before the marriage and kept separate, it may be treated as non-marital property.
Still, it’s not always that simple. For example:
- If the non-marital home was refinanced or improved using marital funds
- If both spouses contributed to mortgage payments
- If one spouse added the other to the title
These actions could make the house (or part of it) marital property.
What Is Marital vs. Non-Marital Property?
Marital Property includes:
- Property acquired during the marriage
- Assets purchased with marital income
- The increased value of non-marital property due to shared effort
Non-Marital Property includes:
- Property owned before the marriage
- Inheritances or gifts given to one spouse
- Personal injury settlements
- Property defined as separate in a prenuptial agreement
It’s the spouse’s responsibility to prove that property is non-marital. If you can’t prove it, it may be divided just like any other marital asset.
Factors the Court Considers in Dividing the House
If spouses can’t agree on what to do with the house, the court steps in. Minnesota judges will consider:
- Each spouse’s financial circumstances
- Who has primary custody of the children
- Whether either party has non-marital claims to the home
- Contributions made by each spouse to the home’s upkeep and value
- Emotional attachment or hardship
The court’s goal is to equitably distribute the property, which may mean awarding the house to one party, ordering it sold, or offsetting its value with other assets.
Options for the Marital Home
1.
Sell the House and Split the Equity
This is often the cleanest solution. The home is sold, and after paying off the mortgage and expenses, the proceeds are divided.
Pros:
- Both parties start fresh
- No ongoing financial entanglement
- No need to refinance
Cons:
- Requires agreement on sale terms
- May be emotionally difficult
- Market timing may affect value
2.
One Spouse Buys Out the Other
If one spouse wants to stay, they may “buy out” the other by paying half the equity.
For example:
- Home value: $400,000
- Mortgage: $250,000
- Equity: $150,000
- Buyout amount: $75,000
The buying spouse must qualify for refinancing in their own name.
3.
Co-Own the Home Temporarily
Sometimes couples agree to co-own the home for a limited time, especially when children are involved. This allows the custodial parent to remain until the children are older.
While this offers stability, it requires clear agreements on:
- Mortgage payments
- Repairs
- Property taxes
- Sale timeline
How Custody Affects the Decision
When children are involved, courts often lean toward awarding the home to the primary custodial parent, especially if:
- The children have lived in the home long-term
- The move would cause major disruption
- School or support networks are nearby
This doesn’t mean the custodial parent automatically gets the house, but it becomes a factor in the judge’s decision.
What If the Home Is Underwater or in Foreclosure?
If the mortgage exceeds the home’s value or it’s in foreclosure:
- The court may assign responsibility for the deficiency
- The couple may agree to a short sale
- One spouse may take the full debt in exchange for another asset
You should speak with both a divorce attorney and a financial advisor in such cases.
What Happens to the Mortgage?
The court may assign ownership of the house, but the lender doesn’t care about your divorce decree. If both spouses are on the mortgage, the lender can pursue either party for missed payments unless the mortgage is refinanced.
Options include:
- Refinancing into one name
- Selling the home to pay off the loan
- Indemnity clauses in the divorce decree (though these don’t bind the lender)
Prenuptial Agreements and the Family Home
If you and your spouse signed a prenuptial agreement that mentions the house, those terms will usually govern what happens during divorce—unless the agreement is found to be unconscionable or improperly executed.
A valid prenup can help avoid disputes over property division.
What If Domestic Abuse Is Involved?
In cases involving domestic violence, a judge may award temporary exclusive use of the home to the victim as part of a protective order. This can impact decisions in the final divorce as well.
For more on protective orders and custody, see our Domestic Violence Attorney page.
How Martine Law Can Help
Navigating who gets the house is one of the most stressful parts of divorce. The attorneys at Martine Law have experience negotiating and litigating high-stakes property division cases in Minnesota.
We will:
- Identify and classify marital and non-marital property
- Calculate home equity accurately
- Negotiate fair buyouts or settlements
- Protect your financial interests
If you’re going through a divorce and have questions about keeping the house, we’re here to help.
Schedule a consultation to learn your rights.