Minnesota Session Laws - 1988, Regular Session

  

                         Laws of Minnesota 1988 

                        CHAPTER 590-S.F.No. 462 
           An act relating to marriage dissolution; providing a 
          date for valuing marital assets; providing for partial 
          distribution of marital assets; requiring parties to 
          file a statement of assets and liabilities; providing 
          that parties owe each other a fiduciary duty with 
          respect to marital assets; amending Minnesota Statutes 
          1986, sections 518.54, subdivision 5; and 518.58. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
     Section 1.  Minnesota Statutes 1986, section 518.54, 
subdivision 5, is amended to read: 
    Subd. 5.  [MARITAL PROPERTY; EXCEPTIONS.] "Marital 
property" means property, real or personal, including vested 
pension benefits or rights, acquired by the parties, or either 
of them, to a dissolution, legal separation, or annulment 
proceeding at any time during the existence of the marriage 
relation between them, or at any time during which the parties 
were living together as husband and wife under a purported 
marriage relationship which is annulled in an annulment 
proceeding, but prior to the date of valuation under section 
518.58, subdivision 1.  All property acquired by either spouse 
subsequent to the marriage and before a decree of legal 
separation the valuation date is presumed to be marital property 
regardless of whether title is held individually or by the 
spouses in a form of coownership such as joint tenancy, tenancy 
in common, tenancy by the entirety, or community property.  Each 
spouse shall be deemed to have a common ownership in marital 
property that vests not later than the time of the entry of the 
decree in a proceeding for dissolution or annulment.  The extent 
of the vested interest shall be determined and made final by the 
court pursuant to section 518.58.  The presumption of marital 
property is overcome by a showing that the property is 
nonmarital property. 
    "Nonmarital property" means property real or personal, 
acquired by either spouse before, during, or after the existence 
of their marriage, which 
    (a) is acquired as a gift, bequest, devise or inheritance 
made by a third party to one but not to the other spouse; 
    (b) is acquired before the marriage; 
    (c) is acquired in exchange for or is the increase in value 
of property which is described in clauses (a), (b), (d), and (e);
    (d) is acquired by a spouse after a decree of legal 
separation the valuation date; or 
    (e) is excluded by a valid antenuptial contract. 
    Sec. 2.  Minnesota Statutes 1986, section 518.58, is 
amended to read:  
    518.58 [DIVISION OF MARITAL PROPERTY.] 
    Subdivision 1.  [GENERAL.] Upon a dissolution of a 
marriage, an annulment, or in a proceeding for disposition of 
property following a dissolution of marriage by a court which 
lacked personal jurisdiction over the absent spouse or lacked 
jurisdiction to dispose of the property and which has since 
acquired jurisdiction, the court shall make a just and equitable 
division of the marital property of the parties without regard 
to marital misconduct, after making findings regarding the 
division of the property.  The court shall base its findings on 
all relevant factors including the length of the marriage, any 
prior marriage of a party, the age, health, station, occupation, 
amount and sources of income, vocational skills, employability, 
estate, liabilities, needs, opportunity for future acquisition 
of capital assets, and income of each party.  The court shall 
also consider the contribution of each in the acquisition, 
preservation, depreciation or appreciation in the amount or 
value of the marital property, as well as the contribution of a 
spouse as a homemaker.  It shall be conclusively presumed that 
each spouse made a substantial contribution to the acquisition 
of income and property while they were living together as 
husband and wife.  The court may also award to either spouse the 
household goods and furniture of the parties, whether or not 
acquired during the marriage.  The court shall value marital 
assets for purposes of division between the parties as of the 
day the proceeding for dissolution or annulment is commenced, 
unless a different date is agreed upon by the parties, or unless 
the court finds that the parties subsequently made a good faith 
reconciliation, in which case the court may establish the 
valuation date as of the date the reconciliation ended.  Within 
60 days after a proceeding for dissolution or annulment is 
commenced, unless the time is extended either by agreement of 
the parties or by order of the court for good cause shown, each 
party shall serve and file a verified statement identifying all 
assets, marital and nonmarital, the values of the assets and the 
basis for the values, and disclosing all liabilities of the 
parties.  If there is a substantial change in value of an asset 
between the date of valuation and the final distribution, the 
court may adjust the valuation of that asset as necessary to 
effect an equitable distribution.  During the pendency of a 
marriage dissolution or annulment proceeding, each party owes a 
fiduciary duty to the other for any profit or loss derived by 
the party, without consent of the other, from a transaction or 
from any use by the party of the marital assets. 
    Subd. 2.  [AWARD OF NONMARITAL PROPERTY.] If the court 
finds that either spouse's resources or property, including the 
spouse's portion of the marital property as defined in section 
518.54, subdivision 5 are so inadequate as to work an unfair 
hardship, considering all relevant circumstances, the court may, 
in addition to the marital property, apportion up to one-half of 
the property otherwise excluded under section 518.54, 
subdivision 5, clauses (a) to (d) to prevent the unfair 
hardship.  If the court apportions property other than marital 
property, it shall make findings in support of the 
apportionment.  The findings shall be based on all relevant 
factors including the length of the marriage, any prior marriage 
of a party, the age, health, station, occupation, amount and 
sources of income, vocational skills, employability, estate, 
liabilities, needs, and opportunity for future acquisition of 
capital assets and income of each party. 
    Subd. 3.  [SALE OR DISTRIBUTION WHILE PROCEEDING 
PENDING.] (a) If the court finds that it is necessary to 
preserve the marital assets of the parties, the court may order 
the sale of the homestead of the parties or the sale of other 
marital assets, as the individual circumstances may require, 
during the pendency of a proceeding for a dissolution of 
marriage or an annulment.  If the court orders a sale, it may 
further provide for the disposition of the funds received from 
the sale during the pendency of the proceeding. 
    (b) The court may order a partial distribution of marital 
assets during the pendency of a proceeding for a dissolution of 
marriage or an annulment for good cause shown or upon the 
request of both parties, provided that the court shall fully 
protect the interests of the other party. 
     Sec. 3.  [EFFECTIVE DATE.] 
    Sections 1 and 2 are effective August 1, 1988, and apply to 
dissolution and annulment proceedings commenced on or after that 
date. 
    Approved April 21, 1988