What Happens to My Business During a Divorce in Minnesota?
May 9, 2013 | Elizabeth A. SchadingIf you opened or created a business during a marriage in the state of Minnesota, the business is marital property. That means that it counts as one of the assets that will be factored into the divorce settlement. If you continued to work at a business created prior to the marriage, the business will have aspects of non-marital and marital value, which may be tricky to determine. Minnesota law demands that marital property be divided equitably (though not necessarily equally). This does not mean you will necessarily lose your business, however. It simply means that the business is an asset which must be taken into account. Business valuation is a complicated process. It’s complicated even when you simply want to sell the business. It can get even more complicated during a divorce. You have to understand this because your business value may be larger or smaller than you think it is. Business valuation takes many factors into account, including the company inventory, the company assets, the income received by the business, and even intangible factors like “customer goodwill.” Two business valuation agents may not even entirely agree on what a business should sell for, even if they look at the same set of books and the same set of factors, all things being…
Read MoreEmployee Spotlight: Sarah Thies, Legal Administrative Assistant
May 7, 2013 | Barna, Guzy & Steffen, Ltd.As our clients already know, one of the greatest assets of Barna, Guzy & Steffen is our staff. We are not just a collection of 27 lawyers – we are a team of 64 individuals who are also important members of our community. Periodically we highlight one of our staff and the community organizations that they support. Today, the spotlight is on Sarah Thies. Sarah is the legal administrative assistant in our municipal, labor and employment group. Sarah has been with BGS for over 20 years. She is a monthly platelet donor at Memorial Blood Center and a regular volunteer at the Brooklyn Park Eidem Homestead historical farm. Sarah also volunteers and is on the Board of Directors for Stable Pathways. Stable Pathways is located at Bunker Park Stables in Coon Rapids. It provides equine-assisted activities for people living with physical and cognitive challenges under the careful direction of either a Professional Association of Therapeutic Horsemanship (PATH) International Certified Instructor or a Minnesota licensed Occupational Therapist. Sarah says that therapeutic horseback riding helps riders “organize” body and brain. Sarah explained that the horse’s gait is most similar to a human gait so riding provides a connection to a natural rhythmic movement from the horse that stimulated the rider’s body and brain. Sarah says…
Read MoreWhat Happens to Retirement Accounts during a Divorce in Minnesota?
May 6, 2013 | Elizabeth A. SchadingWhen you are divorcing, it’s natural to wonder what happens to retirement accounts. It can be a little discouraging to learn that any money you put into the account during your marriage is generally considered to be marital property, even if the account itself pre-dates the marriage. However, as we’ve discussed before divorce always means making some financial sacrifices. You’re better off fairly and accurately reporting your assets. If a judge finds out that you’re trying to withhold information it will not reflect well for your case. Minnesota law is going to entitle your spouse to a “just and equitable share” of your retirement accounts, even if the account is only in your name and even if you were the only one who was working at the time. If you did contribute to the plan prior to your marriage, then you may have a non-marital interest which should be stated so that the pre-marital portion is awarded solely to you. Remember that “equitable” distribution does not mean “equal” distribution. You won’t always have to make a 50-50 split and you aren’t necessarily going to have to give up half of your current account balance. Having a good divorce attorney is helpful in this regard. A good attorney can help you bring certain aspects…
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