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.

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.

• Donovan v. Donovan: Minnesota Court of Appeals (Unpublished).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.

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.

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.

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.

Minnesota’s divorce system is based on the principle of “no-fault,” meaning that a dissolution will be granted if either party believes that the marriage is over. Generally the causes of the failure of the marriage are not an issue in court. All that matters is that the marriage needs to be ended.
It is impossible for us to heal the emotional wounds created by your divorce. You must understand that the legal system is not a tool for punishment of your spouse. The courtroom isn't the place for revenge. We must decide your case on the basis of unique facts. In most cases, the law does not permit us to compensate either of you for the other’s misconduct.

Settlement

The best way to conclude your case is to settle it. Through compromise and cooperation, a settlement can lead to greater mutual satisfaction and lessened animosity between you and your spouse. In most cases, negotiations toward settlement can be more productive and far less expensive than trial. If negotiations fail and you must try your case, we will make rulings that will permanently affect you and your children. Our rulings must be made exclusively upon the limited evidence that is presented in court, and nothing else. Because we are restricted in what we can and cannot do, a settlement can offer a wider range of options. Ask the court administrator for information about mediation programs. A mediator is a neutral person trained to help you and your spouse reach a settlement.

Variations

Every dissolution is different. Your results may be very different from your neighbor’s, friend’s, or relative’s. You cannot rely upon what happened in their cases and assume that your results will be the same. Cases that seem similar may, in fact, be very different and will be treated differently under the law. For this reason, you should look to your lawyer for your legal advice and information. Your friends and relatives usually do not have a grasp of the law and your case, and accepting their advice may hinder you in the long run.

Finances

In the marriage dissolution, the income, assets and debts accumulated during the marriage must be allocated between you and your spouse. The law is that you and your spouse are financial partners during the marriage and are presumed entitled to share in both the assets and income the partnership made. You must make a full disclosure of your finances. For most people, life-styles change after a divorce. Since divorces do not create property or income, we must divide the marital resources between two separate households. It costs more to run two households than one. If you or your spouse have not been employed during the marriage, it may be necessary to seek employment. In considering a settlement, you should consider whether you can afford the attorney’s fees to fully litigate your case. Fees and costs in contested cases can be quite high. Usually, a settlement prior to trial reduces the expenses considerably, an important consideration if you come to the divorce with limited resources.

Issues

Dissolutions generally involve four major issues: child custody and parenting time, child support, spousal maintenance and a division of property and debts. After the case is concluded, we may later be asked to modify custody, parenting time or support. You need to understand each of these aspects of your case.

Child Custody

Both parents and their children may be required to attend an education program before the dissolution is granted. The program will help you understand what affect divorce has on children, and how you can make the transition less traumatic for them. Remember, your marriage may be ending, but you will always be parents to your children. Most parents will share parental responsibility for their children after the dissolution. In doing so, you must communicate and confer with each other in making decisions that will affect your children.

Usually, we will give one parent primary residential care (custody) of the children. Unless there is a good reason to limit parenting time, we will grant the other parent frequent parenting time. We decide custody solely on what is best for the children. Often, one of the parties is hurt by our decision, especially if that party sees the decision in a "win/lose" light. In truth, there can be no loser if the children’s welfare is protected.

In virtually all custody contests we will direct both parties to participate in mediation to resolve that issue. A mediator is an unbiased third party who can often assist the parties in reaching agreement upon what is best for the children. An agreement on custody will certainly make your case easier and help your children immeasurably in dealing with your divorce. If domestic violence has occurred, the Court cannot require you to participate in mediation.

If an agreement regarding parenting time is not reached, a custody study may be ordered, with costs assessed to the parties.

In cases where child abuse or neglect is alleged by a parent during a dissolution, we must appoint a guardian ad litem (GAL) to represent the best interests of the child with respect to custody, support and parenting time. A GAL may also be appointed if the court believes the conflict in the case presents a potential hazard to the child’s welfare or the child’s interests are not being adequately served. The GAL is to conduct an independent investigation into what would be best for the child and to advocate for the child’s best interests. GAL’s must maintain confidentiality of information, monitor the child’s best interest throughout the proceedings, and present written reports to the court on the child’s best interests. If a GAL is appointed, you are likely to be assessed a fee for their services.

Child Support

Aside from continuing to love your children and seeing them often, you have no higher obligation as a parent than to continue supporting your children after the divorce. Child support is more important than any other debt or financial obligation. Both parents are required to support the children but the non-residential parent will be directed to pay his/her portion of the support to the other. This does not mean that the residential parent is not contributing to the support.
Minnesota has adopted guidelines for child support that we are required to follow. Your friends and relatives may have been involved in divorces years ago or in other states and receive or pay higher or lower support than our guidelines provide. The child support in your case will be based upon the incomes of both parents and the needs of your children under the guidelines established by the State. It is possible to deviate from the guideline amount but you must prove that the deviation is legally justifiable.

Spousal Maintenance

We find it necessary to award spousal support in some cases. As with child support, we will consider two factors: one party’s need and the other’s ability to pay. Both of these factors must be proven in court by the requesting spouse. Spousal support may be awarded to either a husband or wife and, depending on the length of the marriage and other factors, the spousal support may be permanent or for only a short duration.

Property Division

Under Minnesota law, we must try to make a “fair and equitable distribution” of marital property and debts. “Equitable” does not always mean “equal.” Many factors, including child support, custody and spousal support awards, can cause us to make an unequal (but still equitable) division of property. We will not generally divide the property and debts that arise outside the marriage.

Attorney’s Fees

We can order one party to pay some or all of the other’s attorney’s fees. We do this to assure that both parties have equal access to competent counsel. We do not award fees in every case, we must first find that one party has a greater ability to pay than the other does.
You cannot ever be certain that we will award fees. For this reason, and because of the great drain that fees can be on marital assets, everyone (parties and attorneys alike) should make every effort to resolve a dissolution case as economically as possible.

Do Not Write Letters To Your Judge

We are not permitted to read letters containing facts or allegations about your case, nor can we speak with you or your friends/relatives on the telephone. If there is something we need to know, inform us by scheduling a hearing and filing motion papers.

Have Reasonable Expectations

You will certainly be disappointed if you expect to “win” on every issue. Rarely is either party happy about every ruling in a case. Even the best rulings leave both parties somewhat dissatisfied. Encourage your attorney to give you a realistic projection of the outcome of your case.

Keep Communication Open With Your Spouse/ Former Spouse

As long as children are involved, you and your former spouse will have to work together. Your children will suffer to the degree that you and your former spouse cannot communicate or cooperate.

Get Professional Help To Deal With Your Emotions

Please do your best to keep emotions out of the case. Your feelings of anger, pain, and betrayal are understandable, but expressing them inappropriately in court may interfere with your ability to provide us with the information we need. If you have trouble with the hostility, anger, or depression that often occurs in divorces, don’t hesitate to get counseling to help you through it. A good counselor can help you, and your children, get through this difficult time and avoid having the anger become counterproductive.

Encourage and Support Parenting Time (Visitation)

If you are the custodial parent and the court has ordered parenting time between your children and your ex-spouse, you have a duty to encourage parenting time. You must do more than just stay out of the way or leave the choice to the children. Encourage your children to see your former spouse frequently and to enjoy the contact. Never use support or parenting time as a lever or bargaining chip in dealing with the other parent. However, if mental health, chemical dependency, abuse or other issues arise and you think your children are not safe with your ex-spouse, seek professional advice on what to do.

Give Your Children a Chance

The way you and your spouse handle your divorce will have an enormous impact upon your children. If you argue and fight, their problems and pain will be magnified. By acting reasonably, you can help your children through one of the most difficult events of their lives.
 

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.

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.

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.