Highlights:
· Minnesota law requires a just and equitable division of marital property in divorce—not always an equal split, but often close.
· A divorce balance sheet itemizes all assets and debts and assigns values to each spouse.
· The sheet calculates an “equalizer” to determine if one party must compensate the other to achieve a fair division.
· This tool is essential for mediation, negotiation, and trial.
What Is a Marital Balance Sheet in Divorce?
In any Minnesota divorce, the division of assets and debts—known as the marital estate—is one of the most important issues. Under Minnesota law, the court aims to divide marital property in a way that is just and equitable. That doesn’t always mean a perfect 50/50 split, but the court typically starts with that presumption.
A marital balance sheet is a document listing every asset and liability, from bank accounts and retirement plans to credit card debts and mortgages. Each item is valued and attributed to one spouse or the other. The totals are then compared to determine if an equalizing payment is needed so both parties receive their fair share.
This balance sheet becomes the roadmap for resolving property division through settlement, mediation, or trial.
Why Is the Balance Sheet So Important?
A well-prepared marital balance sheet:
· Helps both parties understand the true value of the marital estate.
· Allows for clear and efficient negotiations.
· Can be presented in court to explain and support your position.
· Prevents misunderstandings or disputes after the divorce is finalized.
· Can impact related issues like spousal maintenance and non-marital claims.
. Keeping copies of balance sheets during the divorce process helps you track how negotiations are progressing. It also makes it easier to spot if the other party starts backtracking or changing their earlier proposals.
Having an accurate and complete balance sheet early in the process can reduce legal fees, shorten the litigation timeline, avoid ambiguities, and improve your overall outcome.
What Minnesota Courts Consider When Dividing Property
Minnesota courts evaluate several factors when deciding what is “just and equitable”:
· Length of the marriage
· Age and health of the parties
· Vocational skills and employability
· Sources and amounts of income
· Liabilities and future financial opportunities
· Contributions to the acquisition and maintenance of property
· Contributions as a homemaker
The court also considers whether any of the property should be excluded from division as non-marital or separate property.
What Goes on a Divorce Balance Sheet?
A complete marital balance sheet should list all property acquired during the marriage. Balance sheets should also contemplate whether an asset or debt has tax consequences. Common assets and debts include:
Assets:
· Homes, vacation properties, and land
· Vehicles, boats, RVs
· Bank accounts (joint or individual)
· Investment accounts and stocks
· Retirement accounts (401(k), IRA, pensions)
· Business interests or equity in private companies
· Life insurance with cash value
· Jewelry, art, collectibles
· Unvested property
· Contingent assets, intangible property, and loans owed to the parties
· Refunds
· Pets (yes, pets are considered property in Minnesota)
Debts:
· Mortgages and lines of credit
· Car loans
· Student loans
· Credit card balances
· Outstand tax debts and, in some cases, anticipated taxes
· Business or personal loans
Each entry should include a valuation date and documentation—such as appraisals, account statements, or loan documents.
Special Considerations for Complex Divorces
In higher net-worth or complex divorces, the balance sheet may need to address:
· Business valuations by financial experts
· Non-marital property tracing
· Valuation of pensions using actuaries
· Goodwill vs. tangible assets in businesses
· Post-tax vs. pre-tax asset adjustments
If you or your spouse owns a business, inherited assets, or have significant investment holdings, it’s essential to work with experienced divorce counsel to avoid mistakes that can cost you thousands.
Lommen Abdo Can Help You Get It Right
At Lommen Abdo, our Minnesota divorce attorneys use detailed marital balance sheets to protect your interests and maximize your outcome—whether through negotiation or litigation. We have extensive experience with complex asset divisions, non-marital property claims, and high-income divorces.
Getting the numbers right is not just important—it’s essential. Once a divorce decree is finalized, property division is almost never revisited. That’s why early, accurate balance sheet preparation can make all the difference.
Ready to Talk?
If you’re preparing for divorce in Minnesota and want to ensure you receive your fair share, contact Lommen Abdo today. Our team will guide you through every stage, from drafting the initial balance sheet to finalizing your settlement or court order.
Call us or email us today to schedule a confidential consultation.