REAL ESTATE
Real estate issues can be especially challenging during divorce, especially if the parties have little or no equity in their homestead. In many cases, parties own their home outright and have no mortgage payments or real estate debt to address. In other cases, the home is "upside down" and when the home sells a deficiency exists. The current state of the US economy coupled with the downward cycle of the real estate industry has left some husbands and wifes in dire straits. Other couples have equity in their home (or own multiples homes) and can adequately address any financial issues that might arise during divorce by dividing the proceeds after a sale or a buyout.
Valuation of real estate can produce different results depending on who performs the valuation. If a home sells on the open market the valuation question is much easier to address (the value of the home is the sale price of the home). Often times the estimated market value of a home (as contained in the yearly property tax statement) is higher than the true value of the home, especially in certain suburbs of Minneapolis and in outstate Minnesota.
The Minnesota Supreme Court held in Schmitz v. Schmitz, 309 N.W.2d 748,750 (Minn. 1981) that any appreciation in real estate must be apportioned between marital and non-marital when there has been marital and non-marital contributions to the purchase of the real estate. The Schmitz formula helps couples to divide real estate according to the criteria outlined by the Court. If refinancing occurred during the marriage then the Antone v. Antone analysis will be used to determine the marital equity in the home.
Real estate issues associated with divorce are often complex and require proper legal analysis. Please call to speak with a lawyer regarding your specific legal situation.
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Attorney & Mediator Randall A. Smith is the founder of Lake Harriet Law Office & Mediation Services, LLC. Mr. Smith earned his B.A. Degree from Hamline University, his J.D. Degree from Drake University Law School and his M.B.A. Degree from the University of St. Thomas.
Mr. Smith has practiced law since 1996 and is licensed in all Minnesota Courts and in United States Tax Court. He is a Minnesota Rule 114 Neutral Mediator for Family & Civil cases and he performs Social and Financial Early Neutral Evaluations (ENE) in divorce cases.
Please call Lake Harriet Law Office & Mediation Services, LLC at (612) 750-4843 to schedule an office consultation to discuss your case.
