Minneapolis Divorce Attorney & Lawyer : Minnesota Family Law Firm : Brown Law Offices : St. Paul, Twin Cities MN

Michelle O'Neil, a divorce attorney with O'Neil Anderson in Dallas, Texas recently posted about an app she helped create for the iPhone: Divorce Cost & Preps. She writes:

CNN Headline News featured the Divorce Cost & Prep iPhone App created by Dallas Divorce Lawyer Michelle May O'Neil and Fort Worth CPA Bryan Rice. The story originally ran on CBS11 in Dallas on Wednesday night, but by Friday The Morning Express with Robin Meade Show on CNN HLN picked up the story and it spread throughout the US and the world.

According to O'Neil, the app serves two purposes. First, a person contemplating divorce can assess the hidden and direct costs of divorce, such as the cost of providing two houses, two wardrobes for the children, or transportation costs for exchanging the children between houses. Second, the app gives divorce clients a list of information and documents to gather for their lawyer to assist preparation of their divorce.

Divorce Cost & Prep is available on iTunes for $4.99. Lots of apps for lawyers to use, but only a limited number geared toward clients. Congrats to Michelle and Bryan for their creative success.

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For the second time in as many weeks, no family law decisions issued by the Minnesota Court of Appeals or Minnesota Supreme Court. The likely culprit? A new pilot appellate mediation program aimed specifically at family law cases. My guess is the former flood of appellate opinions is being limited by the settlement of cases.

The pilot program, which began 18 months ago, is designed, according to the State, "with the goal of decreasing the conflict levels for families, decreasing the costs to litigants and the court, and increasing efficiency and litigation satisfaction."  The process is structured to reinforce and work cooperatively with the early-neutral-evaluation and other alternative-dispute processes that are become more common at the district court level.

Referral to mediation takes place after the appellant's Statement of the Case has been filed and the filing fee has been paid, but occurs before the briefing stage and before litigants incur the substantial costs of ordering transcripts from the district court where the case originated. Good news; parties to an appeal can expect to spend no less than $10,000.00 each to get through the process.

About a week ago I received a Notice of Appeal from an opposing litigant. Thus far, the Court of Appeals has stayed the proceeding (did so almost immediately) and ordered the parties to mediate within 90 days. The parties are able to rank  five highly qualified mediators appearing on the Court's roster of approved neutrals. The combined blind rank of each party will determine who will serve as the neutral. A sliding fee scale has been implemented, to facilitate various income and net worth levels.

I've heard nothing but good things about the program. I'll update the process as I work my way through it for the first time.

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The Minnesota Court of Appeals recently rendered three family law decisions, none of which warranted publication. One case involved child support issues, another custody and child support and the third property valuation and division:

• Donovan v. Donovan: Minnesota Court of Appeals (Unpublished). Judge Shumaker held that a child support bonus provision was unambiguous and that the doctrine of laches is inapplicable to child support cases.
• Adler v. Espinosa: Minnesota Court of Appeals (Unpublished). Judge Lansing opined that the district court appropriately determined physical custody and child support obligation.
• McCormick v. McCormick: Minnesota Court of Appeals (Unpublished)  Judge Halbrooks found no error in district court's valuation of real estate and denial of fee award, but reversed district court's award of 100% of the marital equity in the homestead to wife.

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Hats off to Chicago Divorce Lawyer Marie Fahnert. She recently posted an article entitled 10 Signs of a Bad Divorce Lawyer on her Divorce Blog. What should you avoid in a Minnesota Divorce Lawyer? According to Fahnert, you should avoid a family lawyer who:

1. Empathizes too much with your pain. If you have a stomach ache, you don’t want the doctor seeing you identifying with your pain. You want the doctor to be objective and fix your ailment. Same thing goes for lawyers.
2. Doesn't listen to you. A good lawyer should have a good understanding of your personality, desires and wishes. This can only be achieved through empathetic listening.
3. Promises to avenge. Laws are set up to help both divorcing parties establish themselves after a divorce. There is no place in a divorce courtroom for vengeance. Your lawyer should tell you this.
4. Calls your spouse names. It is common - although not recommended - for divorcing couples to call each other names. It is unacceptable, however, for a lawyer to engage in this kind of conduct. Your lawyer should be seeking to help you view your situation objectively. Name-calling is never objective.
5. Uses inflammatory language. Over the top language does not help resolve conflict. It won’t help you reach a fair outcome in your case. It only makes things worse. When used by a lawyer, inflammatory language also shows a lack of professionalism.
6. Excessively criticizes other lawyers. In ideal divorces there is a lot of collaboration and trust between the opposing lawyers. A lawyer who cannot get along with other lawyers could wreak havoc on this balance. Also, these things are usually reciprocal - why don’t other lawyers like your lawyer?
7. Tells you he’ll “take care” of the divorce for you. There is no divorce lawyer who can “take care” of your case while you sip a martini. Divorce is hard work for everyone involved. There are documents to produce, depositions to attend and court documents to review. Anyone who claims otherwise is not being honest.
8. Predicts the future. Some parts of a case can be somewhat accurately predicted (child support, for example). Most outcomes are not so clear. In truth, outcomes are often a gamble. A lawyer who tells you they have all the answers may be full of hot air.
9. Buys your blatant lies. Nobody likes a liar or a cheater. If your divorce lawyer overlooks your bad behavior it is not because they like you. They’ll drop you like a hot potato when you run out of cash.
10. Does not express his views. It is a lawyer’s job to encourage clients to make the best decisions for their case. This is often in conflict with the path a client feels is best. A lawyer who does not make his views known might be doing you a great disservice. 

Great suggestions. I would add an additional criteria: Focuses on trial from the onset. As I share with each potential client, we are fully prepared to try their case if necessary. But, our initial focus remains on positioning the case for settlement. The best lawyers don't need their cases to go to trial; they have enough work to approach a conflict in a manner most favorable to their client's (not the firm's) bottom line.

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Today we wrapped up a complex case involving property division and spousal support. The litigants thought they were miles apart from each other, only to find a new best friend in Uncle Sam. With the assistance of a terrific tax accountant, we were able to craft a settlement that took full advantage of the Internal Revenue Code.

Here are eight tax tips to keep in mind as you move forward with your divorce:

1. Child Support. Child support is not income to the recipient and is not deductible for the payer. Keep this in mind if your spouse is seeking alimony. Child support payments that they receive are not taxable and, as a result, increase their net income each month dollar for dollar. As a result, the "need" of your spouse will be diminished and you may be able to argue that their imputed gross income exceeds their gross pay coupled with untaxed child support.
2. Alimony. Alimony is income to the recipient and is deductible for the payer. High income earners can reduce their taxable income by paying alimony. If your spouse's tax bracket is low, the government winds up picking up the tab for a good share of the alimony obligation.
3. Sale of Homestead. The sale of the marital homestead usually does not involve a taxable event. Capital gains (up to $500,000) from the sale of your marital homestead are not taxable if you've lived there for two of the last five years. Nor is a transfer of title to the residence, allowing your spouse to keep some or all of the equity. Many couples opt to forego alimony payments in, instead, pay a disproportionate property settlement to their spouse. In other words, they "buy off" alimony by giving a larger share of home sale proceeds, or equity, to their spouse. The result? No tax implications for either. Ideal for alimony recipients in a high tax bracket.
4. Filing Status. The status of your marriage on December 31 of the relevant year determines whether you file as single or married. If you are divorced by that date, you file as single for the entire year. If your case appears to be coming to a close near the end of the year, best to speak with a tax preparer about the consequence of holding up at bit or expediting matters. We find that courts are usually willing to facilitate bringing matters to a close by the end of the year if tax implications in doing so are substantial.
5. Dependents. While the law provides that the custodial parent is entitled to claim the relevant dependency exemptions, most couples agree to share them. Offering a non-custodial parent the right to claim the dependency exemption under the condition that their child support is current at the end of the relevant tax year provides them with incentive to keep current with payments.
6. Child Care Credit. Custodial parents who incur work-related child care costs can deduct up to 30% of the cost. It is for that reason that the child support guidelines usually require a custodial parent to assume responsibility for a greater share of daycare expense.
7. Liabilities and Refunds. Taxes owed, or refunds received, are usually treated as "marital" and are, therefore, split equally among the parties. In the heat of the moment, some spouses will intercept a tax refund and cash it without the other's knowledge. All funds must be accounted for and it is likely that if they do so their share of the final property settlement will be reduced proportionately. Because income is "marital," a tax liability is a shared responsibility.
8. Attorney Fees. Any fees paid to a lawyer for tax advice are deductible. Ask your attorney for to break out all billable time devoted to tax issues and you can save big.

Keep in mind, the Internal Revenue Code is constantly changing and you shouldn't rely on this post as the final word in your divorce tax planning.

If you involve a CPA in the team of professionals working on your case, they are sure to attack your situation from a unique perspective and offer creative ways to reduce your tax burden - leaving more money on the table for you and your spouse. Those extra funds may just be enough buffer to get your case settled.

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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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We have the responsibility to tell every potential client that we “aren't sure.” Now...how's that for building credibility with someone who wants to entrust their life with you for a bit?

The truth is that we really don't know how much a divorce is going to cost in the end. An attorney who tells you they do probably isn't being up front with you. A host of issues beyond our control play a part in every case. Much depends on what county your case is filed in, what the mindset of the opposing attorney is, who the judge is in your case and what issues are contested.

Divorce cases tend to fall into one of two categories: contested and uncontested. Most contested cases become an uncontested case at some point. 
 

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Although divorce is quite common in our society, we understand that you probably haven't been through it before.  Perhaps the most difficult decision in the entire divorce process is the one that you will make prior to contacting an attorney - the decision to dissolve your marriage.

Once you have determined this is the appropriate step for you to take, you may find yourself puzzled about where to turn. It is likely that you will speak with several attorneys to get a sense of the various approaches they may take in your case and to see if their personality is compatible with yours. At some point, you'll need to decide whether meeting with an attorney as part of an initial consultation is right for you.

We have the privilege of meeting with potential clients quite regularly. During our free initial consultation we try to gather some basic facts about your situation, provide some guidance as to the options that you may face, what the costs and timeframes are with each option and answer any questions you may have about the divorce process, our qualifications to handle the case and our opinion about the merits of your situation. Of importance, we determine together whether it is most appropriate to treat your case as a contested matter or an uncontested dissolution. 

A typical consultation lasts approximately 30 minutes and takes place in our office or over the telephone.  All information shared within the consultation remains strictly confidential and cannot be shared with anyone.

Toward the end of the consultation, we try to get a sense of where you are at with things.  Many of the folks we meet with are just trying to get a broad perspective on what is to come, while others are ready to proceed with the action itself. We are not here to put pressure on anybody. However, if a potential potential client is ready to retain the services of our firm, we provide them with an in-depth client questionnaire to complete and return to us at their convenience.  This allows us to have the key information necessary to properly represent them as we move forward.

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There are two ways for litigants recover attorney's fees from the other party in a Minnesota divorce. The first involves need-based fees. The second involves fees awarded because of inappropriate behavior ("bad-faith conduct") on the part of the other party.

For a fee request based on need, the court is required to award fees and costs in order to enable a party to carry on or contest the dissolution if it finds that the fees are necessary for a good-faith assertion of the party's rights, the fees sought will not contribute unnecessarily to the length and expense of the preceding, the party from whom fees are sought has the ability to pay them, and the party seeking fees does not have the ability to pay them.

A fee award may also be made based upon bad-faith conduct. The fee award will likely be based upon the fact that one party unreasonably contributes to the length or expense of the preceding.  This generally means that a litigant must go above and beyond the norm of advocacy in terms of proceeding with their case. The mere fact they are contesting issues and requesting a trial does not necessarily mean that have engaged in "unreasonable" conduct.

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Minnesota is a no-fault divorce state. A divorce will be granted in Minnesota without the necessity of proving that one of the parties is guilty of marital misconduct. In earlier times, a party to a divorce was required to demonstrate that the other spouse was at fault for causing a breakdown in the marriage. Adultory was by far the most common basis, but others included domestic abuse, abandonment and an inability to consumate the marriage.

Today, a party to a divorce in Minnesota must merely demonstrate that there has been an "irretrievable breakdown" in the marital relationship. One spouse must simply acknowledge as much, and the court will grant their request to dissolve the marriage. A relatively low threshold - and a tough pill to swallow for those who feel that there is no "justice" in their case unless the court takes into account marital misconduct.

Potential clients often ask, "Should I fight the divorce?" Yes, if you intend to do so outside of the legal arena through counseling or therapy. Once it is obvious that the marriage cannot be saved, your resistence should be limited to that which is necessary to obtain a favorable court order. Not wanting the divorce can be used as leverage against your spouse if they are anxious to conclude matters. Often, the impatient spouse will buy a quick resolution by making an extremely attractive settlement offer. This strategy should be balanced against overdoing it. If you are fighting the dissolution process out of anger or spite, you are likely to cause significant economic and emotional harm to you, your spouse and your children.

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