Category: Divorce
Tools Available to Gather Information in a Divorce
October 13, 2022 | Jason C. Brown
Family court cases tend not to settle for one of two reasons: (1) the parties are not emotionally ready to resolve matters; or (2) a lack of information. Sometimes, a divorce litigant will try to conceal assets or hide information from the other side. They rarely succeed at doing so, given the number of tools divorce attorneys have at their disposal to gather information. The process of gathering information in any court case is called “discovery.” There are special rules of court procedure that grant lawyers the ability to obtain discovery. We often start by sending a set of interrogatories to the opposing litigant. An “interrogatory” is a fancy word for “question.” Answers to our questions must be provided under oath, in writing. The most common interrogatories involve inquiry into a litigant’s income and work history, bank accounts, investment accounts, retirement accounts, credit cards, business records and monthly budget. In addition to serving interrogatories, we will submit a request for production of documents to the other side. They are obligated to produce, or make available for our inspection, various records, including tax returns, account statements, and paystubs. If the responding party fails to produce the requested information in a timely manner, we can file a motion to compel production of the requested information…
Read MoreAn Overview of Tax Concepts in Minnesota Divorce
October 13, 2022 | Jason C. Brown
Let’s be honest. Tax issues are dull. But if you are facing a divorce, they play a vital role in the outcome of your case. Our family law attorneys understand the implications of tax law in family court and have preserved substantial sums of money for our clients as a result. A good starting point in a discussion surrounding tax and divorce involves the filing status of the parties after dissolution of their marriage. Parents can yield a substantial benefit if they are able to claim, “head of household.” All that is required is having a child reside in your home for the majority of the year. If parents share equal parenting time with more than one child, we will draft the decree in a manner that gives each a head of household status. The timing of the entry of the divorce decree can impact tax refunds or liabilities. Quite often we purposefully wait until after the first day of the year (or hurry things along before the year ends) under the premise that filing “single” versus “married” can have significant tax ramifications. Because tax refunds or liabilities are typically treated as an asset or debt of the marriage, the parties have a common tax avoidance goal. Many wonder whether a non-custodial parent…
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…
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