Family Law ADR: Alternatives to the Courtroom
October 13, 2022 | Jason C. Brown
To the surprise (and relief) of many, only a small portion of the family cases we handle wind up in trial. The vast majority of the time our attorneys are able to negotiate a favorable settlement. Our firm has a reputation for success in the courtroom. Still, we consider trial as a last resort. Why is it important to focus on settlement efforts before trial? We find that the litigants will save substantial time and money if matters are resolved sooner than later. We also find that the parties are far more likely to abide by the terms of the agreement if they have created it. Most importantly, by working toward settlement our clients maintain control over the outcome, rather than handing that authority over to a judge. There are a number of alternative dispute resolution (ADR) models available to family court litigants. Mediation is a common process in which the parties and lawyers hire a neutral to facilitate a conversation about the issues. The mediator is there to offer suggestions on how to resolve matters but takes no position concerning the issues. Most mediators are experienced family law attorneys who have shifted their practice to ADR after many years in the courtroom. Evaluative mediation involves the retention of a neutral but gives…
Read MoreAn Overview of Business Valuation and Division in Divorce
October 13, 2022 | Jason C. Brown
Business owners face a unique set of challenges as part of a divorce. The valuation and division of business interests can be complex and stressful. At a fundamental level, understand that a business is an asset of its owner. Minnesota law provides that the assets of the parties to a divorce are divided in an “equitable” manner. That almost always means equally. Minnesota law also recognizes that if a party to the marriage brings an asset into the relationship, the asset likely has a nonmarital component that is not subject to division. If the value of the nonmarital business grows during the marriage, the increased value is considered marital. The key to determining the significance of business ownership often rests in the value of the business itself. Naturally, the more valuable the business, the more attention it receives. Business valuation is as much art as science. Our family law group works with the more reputable business appraisers in the Twin Cities. These experts typically invoke one of three methods to offer an opinion as to the market value of a business: (1) the balance sheet approach; (2) the multiple of profits approach; and (3) valuation based on comparable business sales. Valuation of a business using a balance sheet approach is relatively straightforward. The…
Read MoreWhat Should be Included in an Arbitration Clause Used in Business Contracts?
October 10, 2022 | Joan M. Quade
Many companies are choosing arbitration to resolve business disputes, as litigation has become more and more expensive, and it sometimes takes years to get to trial. The district courts are still very behind from the COVID pandemic, adding to the delay. Even after trial, the appeals can go on for years, costing additional resources and time. So, what do you put into an arbitration clause that accomplishes what you want? First, you should always consult with your attorneys based upon your particular business needs. They can draft the perfect arbitration clause for you, after discussing your business goals and philosophy about dispute resolution. Some companies need or want to take a more litigation-like approach regarding disputes and want a requirement to arbitrate because of its cost savings and speed, but also to include some rights to limited discovery in the process. Other businesses take a more collaborative, problem-solving approach to reach a mutually beneficial and economical resolution to problems. They want a requirement in the clause to attempt to resolve any disputes before they file for arbitration, through settlement efforts or even mandatory mediation. If the collaborative, problem-solving method does not work, they want to streamline the dispute resolution through a well-defined arbitration process. Both philosophies need specific clauses that spell out the…
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