Selling Commercial Property During A Divorce

05/25/2026 09:30 AM Mark Goodman

Many people who go through divorce proceedings wonder what will become of their commercial property during the division of assets. If the split is amicable, you can probably come to a pretty equitable split of your joint assets, but many divorces don’t end so smoothly. Both spouses may try to come out with a better end of the deal, or one may act maliciously throughout the divorce, and that can greatly complicate asset division, specifically when it comes to commercial property. Below, we take a closer look at how commercial assets need to be sold during a divorce to avoid triggering potential title issues.

How Divorce Can Trigger Title Clouds

We’ve been in this business for decades, and we can confidently say two things. We’ve helped countless couples sell their commercial property as needed during a divorce, and no two divorces are the same. Divorce can make people act in ways they normally wouldn’t, and it’s our job to make sure assets are sold properly so as not to trigger title concerns for yourself or a future buyer.

So let’s look at what Minnesota law says about selling assets during a divorce. According to Minnesota statute 518.58(1a), each spouse owes a fiduciary duty to the other spouse to maintain and preserve marital property during preparation for a divorce, and while the divorce is pending.

Some examples that could get you in trouble include:

Selling commercial property during a divorce without your spouse’s knowledge or permission.

Gifting commercial property to a friend or family member in an effort to reduce asset obligation to a spouse.

Selling commercial property for less than it is reasonably worth to reduce assets available to another party.

These actions can also end up clouding a commercial property’s title. Depending on the title, deed, commercial structure and stage of the divorce, it’s possible that you’ll need permission or signatures from your spouse or other individuals in order for a sale to be valid. Absent these things, the sale may be ruled invalid by the court, complicating matters for you, your spouse and the buyer. Title agencies work to investigate these matters and ensure sales are done by the book so no title claims can be made on a property, but when a seller is knowingly acting in bad faith, title clouds can develop.

If you’re a buyer, work with a title company who vets their sellers and confirms that assets that are being sold during any stage of a divorce or separation are being sold correctly and in a court-approved manner.

For more information on buying or selling commercial property during a divorce, or for assistance with a different aspect of commercial acquisition, reach out to the team at Commercial Partners today at 612) 337-2470.