Divorce and Taxes in Minnesota: 7 Costly Mistakes (and How to Avoid Them)
Filing status, alimony, the kids, the house and the 401(k): seven divorce tax mistakes that cost Minnesotans thousands, and how to avoid them before the decree is signed.
Property division is often the most financially consequential issue in a Minnesota divorce, and the most misunderstood.
Minnesota is an equitable distribution state. Under Minn. Stat. § 518.58, courts make a just and equitable division of marital property.
The posts below cover the family home, retirement accounts, business interests, debt allocation, dissipation of assets, and the relationship between property division and spousal maintenance. I have practiced family law in Minnesota courts since 2000 and wrote these posts to help you through your property division process.
Filing status, alimony, the kids, the house and the 401(k): seven divorce tax mistakes that cost Minnesotans thousands, and how to avoid them before the decree is signed.
I’ve discussed farm divorces before in this blog, and while there are some unique issues during farm divorces, there are some general principles regarding the division of farmland that is pretty standard in how property is divided in a Minnesota divorce. The basic principle is that each spouse is entitled to ½ of the assets in the…
Key Takeaway:In Minnesota, stock options are normally considered marital property if they were granted or earned during the marriage and before the court’s valuation date, even if they’re unvested. Courts may apply a “time rule” (from the Salstrom Case) to divide the marital portion fairly. If you or your spouse have stock options as part of a compensation…
At a Glance: In Minnesota, filing for bankruptcy during a divorce triggers an “automatic stay” that pauses property division but usually allows child support and custody cases to proceed. While bankruptcy can wipe out credit card debt, it cannot eliminate child support or spousal maintenance. By: Jason Kohlmeyer Updated: Jan 2026 If you are dealing with divorce and…
Update 2026 How to protect your credit before and during a divorce When you are going through a divorce, your credit score probably is not top of mind. But your credit still matters more than ever when you get divorced, because it’s just you! not you and your spouse anymore. You may need to refinance…
Taxes and Divorce in Minnesota: a FAQ Divorce lawyers (myself included) spend most of our time thinking about custody, support, and property division, not tax code details. Many family law attorneys also put language in their retainer agreements saying they don’t give tax advice, and that you should talk to a CPA. That was common…
What To Do With The Mortgage In The Divorce? (Updated: June 2025!)Jump to the FAQ Section of Divorces and Mortgages! Mortgage and Divorce: People getting divorced often have a mortgage on their house, and if you don’t address this properly BEFORE the finally divorce this can cause some problems after the divorce. The good news…
Updated: May 2025 Understanding property division is crucial when navigating family law matters. How To Divide Marital Property if Your getting Divorce in Minnesota Dividing property in a Minnesota divorce might feel a bit like you need a label maker to divide your property. Some things are clearly yours, some clearly theirs, and others… well,…
UPDATE: May 2025 Ex’s With Benefits: Navigating the complexities of divorce and Social Security can be challenging, but understanding how they interact might offer unexpected advantages. Collecting Social Security benefits after a Minnesota divorce When you’re going through a divorce, the last thing you want to think about is Social Security. But if you’re over the age…
You’ve been married 20 years or even just a few, either way you’ve accumulated, some things, and by Some things I mean a lot of stuff! What do you do with personal property during a Minnesota Divorce? Well, read on and you will learn what Judges can and, often do, during a divorce. What Is…