How to Treat Negative Equity in Real Estate

By: Alan Eidsness , Jaime Driggs | Minnesota Lawyer | December 16, 2013
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.

  Originally published for Minnesota Lawyer
Alan Eidsness
With more than four decades of experience, I have a depth of knowledge that gives me clarity, wisdom, and skills that few can match. It’s exciting for me to be at this point in my career and I look forward each day to making a difference in the lives of my clients. I help clients in the following areas: full spectrum of family law issues: concerns in this arena are complicated, especially in situations of high net worth. With my comprehensive knowledge of substantive legal areas—business, tax, real estate, trusts...
Jaime Driggs
Family law is more than a legal process; it blends personal, emotional, and financial issues. I help you take one step at a time, focusing on what you can do in the moment, while never losing sight of your long term goals. By working exclusively in family law, I have the legal knowledge and practical experience to give you a clear picture of what you are facing. I represent clients in cases ranging from simple, uncontested divorces to complex proceedings involving: non-marital tracing, business valuation, spousal maintenance, and division of...