Key Real Estate Questions Every Divorcing Couple in Minnesota Should Ask

Divorce is undeniably one of life’s most challenging transitions, and when real estate enters the equation, the process can quickly become overwhelming. For many couples in Minnesota, the marital home represents more than just a significant financial asset—it’s a space filled with shared memories and milestones. Navigating what to do with this property requires thoughtful deliberation, open communication, and a clear understanding of all available options to make the best decision for both parties.

Whether you are just starting the divorce process or are in the middle of making decisions about your home, here are some important questions divorcing couples need to ask when it comes to Minnesota divorce real estate.

1. Is the Home Marital or Non-Marital Property?

Before making any decisions, you need to determine whether your property is considered marital or non-marital under Minnesota law.

Marital property: Generally, it includes all assets acquired throughout the course of a marriage, encompassing real estate, investments, personal property, and other financial holdings—regardless of whose name is listed on the title or account.

Non-marital property: Assets that remain the exclusive property of one spouse, even after marriage. This can include real estate purchased before the marriage, assets received through inheritance, or gifts specifically designated for one spouse. Recognizing and clearly distinguishing these assets is essential for effective financial planning and safeguarding individual ownership rights.

Understanding this distinction is critical in deciding how equity will be divided.

2. What Is the Current Market Value of the Home?

A professional real estate evaluation is essential. Couples often underestimate or overestimate the home’s value, which can lead to unfair settlements. A Certified Divorce Real Estate Expert (CDRE®) like Shannon Lindstrom with RE/MAX Results can assist in providing an impartial market analysis to ensure both parties have accurate numbers when discussing equity division.

3. What Happens to the Mortgage?

If the home has an existing mortgage, you will need to decide who, if anyone, will assume responsibility:

• Will one spouse refinance the mortgage into their name only?

• Is selling the home the best financial solution for both parties?

• How will you handle situations where neither spouse can afford the home independently? 

4. Should We Sell the House or Keep It?

This is one of the toughest question a divorcing couples may face. Options may include:

• Selling the home and dividing proceeds equitably.

• One spouse buying out the other’s share, allowing them to remain in the property.

• Continuing joint ownership temporarily (for example, until children finish school), with a clear agreement on responsibilities and a future sale date.

Each option has long-term financial and emotional consequences that should be carefully considered.

5. How Will Capital Gains and Taxes Affect Us?

Divorcing couples in Minnesota often overlook tax implications. For instance:

• Selling a home may trigger capital gains taxes, depending on how long you have lived there and how much equity has accrued.

• Refinancing or transferring property ownership could have tax-related consequences.

It is best to consult with both a divorce attorney and a financial professional to fully understand the tax impact.

6. What Role Does Timing Play?

The timing of your decision can affect market conditions, tax filings, and even your divorce settlement timeline. Questions to ask include:

• Is now the best time to sell based on the housing market?

• Should we wait until after the divorce is finalized to transfer ownership?

• Will selling before or after the new tax year make a financial difference?

7. Who Should We Consult During the Process?

Real estate in divorce is not just a legal or financial issue—it is also an emotional one. Surround yourself with the right professionals, including:

• An experienced divorce attorney specializing in Minnesota family law.

• A Certified Divorce Real Estate Expert (CDRE®) to guide you through property decisions.

• A mortgage professional to explore refinancing or buyout options.

• A financial advisor to understand long-term implications.

Dividing real estate during a divorce can be complex but asking the right questions helps both parties make informed, equitable, and forward-looking decisions. The marital home is often the most significant financial asset in a divorce, whether one spouse keeps it, buys out the other, or the property is sold. By consulting experienced professionals and carefully addressing these critical considerations, you can navigate the process with greater confidence, clarity, and peace of mind.

If you are going through a divorce and need to sell your home in Minneapolis, St. Paul, or the surrounding areas, consulting a Certified Divorce Real Estate Expert is a crucial step toward resolution and peace of mind.

Shannon Lindstrom, Realtor®, CDRE®, MILRES, MRP, VCA
RE/MAX Results – Minneapolis & St. Paul Metro
7373 Kirkwood Court No, Ste. 300
Maple Grove, MN 55369
Direct: 612-616-9714
Lindstrom_S@msn.com
Shannon@ShannonLindstromRealtor.com
www.ShannonLindstromRealtor.com
www.ShannonLindstrom.info
https://www.ilumniinstitute.com/cdre/shannon-lindstrom
www.MNDivorceRealEstateExpert.com