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How to Treat Negative Equity in Real Estate

December 16, 2013
By: Alan C. Eidsness , Jaime Driggs
»Domestic Relations »Real Estate Equity

Ever since housing prices plummeted, family law attorneys have struggled to determine how to treat real property with negative equity. Does it go on the balance sheet as a negative number or does it get valued at zero? With Middendorf v. Middendorf, the Court of Appeals issued a decision addressing how to treat real property with negative equity, an issue family law attorneys have struggled with since housing prices plummeted. The opinion provided some direction but not a comprehensive exposition on the subject.

Family law attorneys Alan C. Eidsness and Jaime Driggs examine the decision in their article, “Negative Equity in Real Estate.”

The article is part of a series previously printed in Minnesota Lawyer covering topics relevant to the area of family law.

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