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Bench & Bar of Minnesota is the official publication of the Minnesota State Bar Association.

Double Your Money

Under the judgment interest rate statute, Minn. Stat. §549.09, judgments for $50,000 or less currently accrue interest at only 4 percent while judgments over $50,000 accrue interest at a whopping 10 percent!  In Estate of Rutt, ___ N.W.2d ___, (Minn. App. 2012), www.lawlibrary.state.mn.us/archive/ctappub/1210/opa120335-102212.pdf/, the court of appeals held that the $50,000 threshold is applied to judgments as delineated by the district court and does not need to be met by each individual claim upon which the judgment is based.  In post-decree family law cases involving claims for unpaid property payments, spousal maintenance, attorney fee awards, child support, medical expense contributions, extracurricular activity costs, etc., which total more than $50,000, instead of requesting entry of separate judgments on each individual claim that would accrue interest at 4 percent, you can double your money by asking the court to enter a single judgment on all the claims to cross the $50,000 threshold and obtain the 10 percent rate.

Jaime Driggs

Henson & Efron

Minneapolis

jdriggs@hensonefron.com

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