Gambling and its Effect on Division of Assets in Minnesota Divorces

Gambling is an issue that is especially troubling during the Minnesota divorce process. Although gambling may have occurred during the marriage with the full knowledge of the other spouse, during a divorce the issue is sure to be brought up as a waste of marital assets. What’s more, gambling during the divorce process, may be viewed by a Minnesota divorce court as a dissipation of marital assets in violation of Minnesota Statute 518.091. The Minnesota Statute limits a party during a divorce and allows for spending of assets only for the necessities of life or for the necessary generation of income or the preservation of assets.

The two issues that arise with gambling in a Minnesota divorce are whether a party wasted the marital estate during the marriage and whether the marital estate was wasted during the divorce proceeding or in contemplation of the divorce proceeding.

As discussed previously on TheLawWay.com, a division of assets in a Minnesota Divorce, allow a Minnesota Court to award property and assets in an equitable fashion. This does not mean fifty-fifty. Arguments can be made for both parties regarding divorce that involves the issue of gambling. One party may argue but for the gambling, the marital estate would be larger. The other party would argue that the gambling was done as a hobby and in full knowledge of the non gambling spouse who did not object during the marriage. Minnesota Courts generally balance dissipation of assets during the marriage through gambling as a fairness issue. Minnesota Statute 518.58 allows a court to consider among all factors, a party’s contribution in acquiring, preserving, depreciating or appreciating marital property. Essentially, if the parties marital estate was wasted primarily based on gambling the court has the power to award a greater portion of the remaining marital estate to the non gambling spouse.

A far different scenario is gambling during the course of the divorce or in contemplation of the divorce. Parties are well advised not to gamble prior to or during a divorce. In the case of the non gambling spouse, careful records need to be kept of the gambling. The amount of losses from gambling can be included as compensation to the non gambling spouse.