Divorce Settlement Checklist: Answer These 24 Questions and You're Done!

We've posted a number of entries concerning the benefits of settling a divorce as opposed to litigation. Even if you need to litigate, more than 95% of cases will settle before trial.

The following settlement checklist will come in handy as you attempt to figure out if you've got all of your bases covered:

  1. Legal Custody: Joint or sole legal custody?
  2. Physical Custody: Joint or sole physical custody?
  3. Routine Access Schedule: Where will the children be on a given day?
  4. Vacation Access Schedule: How many weeks of uninterrupted vacation time with the children?
  5. Holiday Access Schedule: Who do the children celebrate with in a given year?
  6. School-Year Breaks: Where will the children spend spring break or President's Day, for example?
  7. Telephone Contact: What are the rules concerning communication with the children by phone?
  8. Transportation: Who will transport the children for parenting time exchanges?
  9. Basic Child Support: What is the amount of guideline support to be paid?
  10. Medical/Dental Child Support: Who will insure the children and how will uninsured costs be allocated?
  11. Child Care Support: How much will each parent pay for daycare?
  12. Security for Support: Should one or both parents secure life insurance, naming the other as beneficiary for the benefit of the children?
  13. Income Tax Exemptions: Who claims the children on their income taxes?
  14. Spousal Maintenance/Alimony: How much and for how long?
  15. Medical Insurance: Will each party cover their own?
  16. Marital Property: What is a fair and equitable way to value and divide marital property?
  17. Non-Marital Property: Does the holder of a non-marital interest retain that interest?
  18. Pre-Separation Debts: How is the marital debt divided?
  19. Post-Separation Debts: How are debts accrued after separation divided?
  20. Fees and Costs: Will one party pay, or each responsible for their own attorney fees and costs?
  21. Name Change: Does either spouse wish to change their name?
  22. Ongoing Conflicts: Will the parties agree to mediate or use a parenting time consultant if future problems arise?
  23. Documents: Do each agree to execute all paperwork necessary to transfer property interests?
  24. Non-Disclosure: Does the court retain the ability to re-open the case if it is revealed that one party has hidden assets from the other?

Naturally, there are many other issues that will need to be addressed, but the 24 items listed above will give you a general framework for discussion.

"I'll Quit My Job" Says My Spouse. Can They Get Out of Paying Child Support or Alimony to Me?

The court will "impute" income if your spouse is voluntarily underemployed. Rest assured, you have nothing to fear.

Let's suppose your spouse is trained as a physician and decides, for the time being, to work as a waiter at a local restaurant. The court can take an individual's education, work history, job opportunities in the local market and earnings associated with those jobs into account in calculating appropriate child or spousal support. Assuming your spouse is reasonably assured of obtaining a position as a doctor with a six-figure salary, a doctor's salary will be attributed to them.

One of the more common discussions we have with new clients involves a spouse's claim (with laughter) that they will quit their job and our client will receive nothing. "I'll quit my job" they say. Wrong strategy. Your spouse is free to work in whatever capacity they wish. At the end of the day, however, the amount of support they pay is based on what they actually earn or have the potential to earn, whichever is greater

 

View From The Bench: Minnesota Family Law Judges Offer Suggestions To Litigants

The Minnesota Judicial Branch has published an exceptional brochure entitled "From the Judges of Family Court: What to Expect...Divorce in Minnesota." In reviewing, it appears to serve as a "reality check" for the litigants. Much of it I endorse. Here is some of what the Court has to say:

A divorce can be a painful and difficult experience, but if you understand the functions and limitations of the legal system, the process becomes less frustrating. It is our hope, as Judges of Family Court, that this pamphlet will give you a better understanding of the process, and help you get through your divorce with realistic ideas and goals.

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Experts Involved In Divorce Cases

Depending upon the facts and legal issues involved in your divorce, a number of experts may play a role in your case, including a home appraiser, actuary, custody evaluator, business appraiser and vocational assessor.

The most common expert we employ is a home appraiser. In most cases the most valuable asset for division is the marital homestead. If one party elects to remain in the homestead we must calculate the equity in the house to determine the value of the property settlement. Naturally, the first step to establishing equity involves the determination of the market value of the property.

A typical homestead appraisal costs around $350. They take approximately one (1) week to complete. Many clients ask if a realtor’s market analysis can substitute for an appraisal. If the parties agree, a market analysis is sufficient. However, a realtor’s market analysis does not hold the same evidentiary weight as a certified real estate appraisal. For that reason, the appraisal is usually preferred.

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How Does The Court Determine An Appropriate Amount of Alimony?

Spousal maintenance, formerly known as alimony, is one of the more difficult issues to tackle during the dissolution process.  With the exception of child custody, no other issue is as personal or emotionally charged to divorce litigants.

It is quite difficult to predict exactly how much spousal maintenance the court will award a particular party.  The court will examine a host of factors, and each play a part in the decision-making process.  For that reason, alimony is decided on a case-by-case basis. 

The court will examine the standard of living established during the marriage.  Based upon that standard, it will take into account the anticipated ongoing monthly expenses of each spouse. The question for the court involves whether these alleged expenses are reasonable under the circumstances.  The court will compare the expenses against the income of each litigant.  If a litigant faces a monthly shortfall, the party will have a need for spousal support. If a litigant faces a monthly windfall, they will have the ability to pay spousal maintenance.  These elements are measured against the length of the parties' marriage, the age of the parties, the educational background of the parties and the mental and physical health of the parties.

Once all of the elements are considered, the court will determine whether an award is appropriate, how much the monthly award should be and the length of time paying party will be obligated to support their former spouse. The longer the marriage, the more likely a permanent award of spousal maintenance will be granted.  With shorter marriages, the court may consider an award of temporary spousal maintenance so that other party has an opportunity to reeducate themselves, reestablish their career path and become self-supporting.

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