Determining Ownership of the Marital Home: Insights into Twin Cities Divorce Real Estate
Dividing the marital home during a divorce is often an emotionally charged and financially complex process. For many Minnesota couples, the home isn’t just a major asset—it’s where memories were built, children raised, and life chapters written.
So, who will get the house in a divorce? The answer depends on a combination of Minnesota law, financial considerations, and personal circumstances. In this guide, we’ll walk you through the process of equitable home division in Minnesota, with practical insights and local context to help you make informed decisions.
⚖️ Minnesota Divorce Law: Equitable Distribution, Not Equal
Minnesota is an equitable distribution state, meaning marital property is divided fairly, not always equally. When a home is considered marital property—typically if it was purchased or improved during the marriage—it’s subject to division.
The court considers several factors, including:
Each spouse’s contribution to acquiring and maintaining the home
Income and financial needs of both parties
Custody arrangements and the stability of children
The duration of the marriage
Non-marital claims, such as premarital ownership or inheritance
➡️ Note: Even if only one spouse is listed on the deed, the home may still be marital property.
🏠 Common Outcomes: Who Typically Gets the House?
There are three main outcomes when dividing a home in a divorce:
1. Sell the Home and Divide the Equity
This is the most straightforward solution. After selling, the net proceeds are split based on an agreement or court order.
Pros: Clean break, liquidity for both parties, avoids future disputes.
Cons: Can be difficult in a slow market or emotional for those attached to the home.
2. One Spouse Buys Out the Other
If one spouse wants to stay (often to maintain stability for children), they may buy out the other’s equity share.
Tip: The staying spouse must refinance the mortgage to remove the other’s name and demonstrate they can afford the home on their own.
3. Co-Ownership (Temporary or Long-Term)
Sometimes couples agree to delay selling the home—especially if they share children.
Example: A divorcing couple agreed to co-own the home for two years until their youngest graduated high school, with plans to sell and split the proceeds later.
Warning: Co-ownership can lead to disputes over payments, maintenance, and future equity.
🔎 Local Market Considerations in the Twin Cities
The current local real estate market can influence decisions around the marital home. In rising interest rate environments, refinancing during divorce can be costlier—making selling or co-owning a more viable short-term plan.
Appraisals should be carried out by professionals with in-depth local market knowledge to ensure equitable property division. Alternatively, consider consulting a Certified Divorce Real Estate Expert (CDRE®)—an experienced Realtor®—who can provide a comprehensive Competitive Market Analysis (CMA).
🧾 Case Study Example & Insight: Divorce Real Estate
Case Example: A couple divorcing after 15 years of marriage owned a four-bedroom home.
The wife wanted to keep the home to maintain continuity for the children, who attended nearby schools.
The husband agreed to a buyout, and the home was appraised at $625,000.
After subtracting the mortgage balance and transaction costs, the equity was split 60/40 due to the wife assuming full ownership and taking on higher monthly costs.
Result: A peaceful transition, supported by a divorce-focused Realtor® and an attorney, led to a fair and child-centered resolution.
📌 What You Should Do Next
If you’re going through a divorce in the Twin Cities, Minnesota, and need to make decisions regarding the marital home, consider the following suggestions
Determine if the property is marital or non-marital
→ Work with a divorce attorney to clarify your legal rights.
Get an objective home valuation
→ Hire a neutral appraiser or a Certified Divorce Real Estate Expert (CDRE®) familiar with your location.
Understand your financial options
→ Speak with a mortgage professional to evaluate refinancing or buyout potential.
Understand your refinancing or home buyout options in Minnesota
→ Hire an experienced Realtor® who has received specialized training in handling real estate transactions involving divorcing couples.
Consult with a divorce-focused Realtor® like a Certified Divorce Real Estate Expert (CDRE®).
Need help with your MN divorce real estate sale?
Let’s discuss the best strategy for your unique situation—reach out today for a confidential consultation.
Please feel free to contract Shannon Lindstrom, Certified Divorce Real Estate Expert and Realtor® at RE/MAX Results today to begin your journey with the guidance and expertise that will help you make empowered decisions during this time.
Shannon Lindstrom, Realtor®, CDRE®, CREDS, GREEN, MILRES, MRP, VCA
RE/MAX Results
Direct: 612-616-9714
Lindstrom_S@msn.com
Shannon@ShannonLindstromRealtor.com
www.ShannonLindstromRealtor.com
www.ShannonLindstrom.info
https://www.ilumniinstitute.com/cdre/shannon-lindstrom
