The Four Phases of a Contested Divorce in Minnesota

About half the cases we handle are more contested divorces. These are marital dissolution cases in which the litigants don’t expect to reach agreement early and, instead, need the intervention of the court system in order to reach a resolution.

These divorces typically involve four distinct segments.

The first segment of work in a contested case involves the case workup. This is where we put together the initial pleadings in the case and serve and file them. You will complete an initial questionnaire and provide documentation to us so that we can adequately move forward and understand exactly what relief is sought.

Following the service of the summons and petition, we will participate in what’s called an initial case management conference. This is a first meeting with the judge, on an informal basis, to talk about the issues that are in controversy. The court, at that point, might refer the matter for an early neutral evaluation. This is a process where the parties can meet with a court-appointed expert and try to settle the case before becoming too entrenched.

If matters don’t resolve at the early neutral stage, then we move into the next phase - called discovery. This is a process where we’re going to gather information from your spouse. We may do so formally, or informally.

In addition, we may elect to schedule a motion for temporary relief. This is a hearing in which the court will make a determination, on a temporary basis, of who is going to reside in the homestead, who is going to have temporary custody of the children, and what sort of temporary alimony, or child support awards, are appropriate. Quite often cases will settle following the entry of a temporary order, because the parties have a preview into how the judge views the facts of the case.

However, if the case has to continue, we will position your case for the settlement stage. We’re going to attempt to work out matters either through mediation, or some other form of alternative dispute resolution.

If we’re not able to work it out, the court will call us back in, and we will participate in a pre-trial conference, where we’re going to try one last time to get the case settled, with the assistance of the judge.

The fourth phase involves preparation for and actually trying the case. The judge has 90 days to issue a written decision following the end of the trial, and if either party is dissatisfied with the outcome, they have an additional 60 days in which to file an appeal.

Divorce Court: A Few Simple Rules to Follow

Thanks to Mark Pfenning, a divorce lawyer and author who has published many articles geared toward helping parties through the divorce process. His recent article, Divorce Courtroom Tips, provides some helpful strategies and a useful summary of the basic rules of decorum in family court. Here's what Mark has to say:

  1. Settle Some Things. This means the judge won't be in control of everything.
  2. Expect Unfavorable Decisions. There are three directions the judge can go when making a decision: Your way, your spouse's way, or the Judge's way. As you can see, two out three are not in your favor.
  3. Let Your Divorce Attorney Do the Talking. Do not speak unless asked to do so by the Judge.
  4. Respect is an Absolute. When addressing the Judge with respect by addressing him/her as "Your Honor."
  5. Don't Address Your Spouse. Never speak to or make comments to your spouse when you are before the Judge.
  6. Check Your Emotions at the Door. Do not make faces or gestures when the judge or your spouse's attorney is speaking. Judges see this and do not appreciate it.
  7. Dress for the Occasion. Your attorney will have a certain strategy on how he/she wants you to be portrayed. Therefore, consult your attorney on how he/she wants you to dress.
  8. Write. Don't leave anything to chance. Your attorney will be very busy during the process and cannot remember or write everything down.
  9. Come Prepared. Bring as much information, documentation and any pertinent documents that you possibly can with you. It is better to have too much ammunition than not enough.
  10. Be Ready to Wait. You will sometimes wait for hours before your case is called.

Good suggestions. I would also suggest leaving all digital devices in the car. I recall a lawyer whose cell phone rang in the middle of his intense cross examination of my client in a recent trial. The more memorable impression was the expression on the judge's face.  

Staying Ahead of the Curve: 12 Proactive Steps To Take If You Are Contemplating Divorce

Once you break the news of your desire to dissolve your marriage, interesting things may start happening at your house. Critical records and valuable items of personal property may suddenly vanish. It pays to be proactive to ensure that you have all the information you will need to move forward as efficiently as possible.

The wasted time and cost associated with hunting down missing documentation can be staggering. We've handled cases where everything from an expensive diamond ring to boxes of business records have taken a bit a "vacation." We almost always find them, but not without substantial effort. In cases where they are not found, the Court will impose substantial sanctions and assume the missing evidence is favorable to you.

To help avoid the mess, we've assembled a list of 12 things you should gather to ensure that you have all of critical information in hand before your spouse has a chance to conceal, transfer or sell items. These include obtaining:

  1. Copies of financial statements;
  2. Copies of tax returns;
  3. Copies of computer hard drives;
  4. Copies of insurance policies;
  5. Copies of wills and/or trusts;
  6. Inventory of safety deposit boxes, with a witness;
  7. Copies of deeds and/or titles to real property;
  8. Copies of small business ledgers, financial journals, payroll, sales tax returns and expense account records;
  9. Copies of appraisals for art, antiques, jewelry and collectibles;
  10. Record the contents of each room in your home through video;
  11. Copies of retirement account statements; and
  12. Copies of your spouse's pay stubs for the last few months.

Investing some time in gathering these items will ensure that your spouse cannot take advantage of you during the divorce process. The denial of the existence of an asset is a fraud upon the Court. Once your spouse knows that we have all of the key information in hand, they are far less likely to engage in bad faith conduct and be honest in their disclosures throughout the process.

Divorce Lawyers Encouraged to Gather Evidence from Social Networking Sites such as Facebook, Twitter and MySpace

Minnesota Lawyer recently featured an article by Sylvia Hseih entitled Divorce Attorneys are Missing Evidence on Social Media Sites. She reports that sites such as Facebook and Twitter contain a "treasure trove" of legal evidence - especially in divorce cases. She writes, however, that most lawyers are missing the boat.

Hseih points out that damaging messages and compelling photos can quickly lead a case to settlement if discovered and presented early.

Citing the "adultery discovery," Hseih suggests that a suspicious spouse may be armed with damaging information to bring in to court. Keep in mind, however, that Minnesota is a no-fault divorce state. Whether you or your spouse are faithful to one another isn't relevant under our divorce statutes (Hseih's article first appeared in a national publication).

There are other highly relevant uses for this information, however. Here are a few examples referenced by Hseih:

  • Confessions involving an individuals social life;
  • Photos with children in places they ought not be;
  • Photos of parties to the case consuming liquor or using drugs;
  • Income and employment information; or
  • Inappropriate sexual content

Hseih recommends looking both ways, urging lawyers to speak with their clients about the types of social networks they post on, limiting the information they provide and increasing access security to prevent their spouse from tapping in.

I encourage anyone going through a divorce to modify all of their passwords to prevent a spouse from creating a false profile or modifying information on the social sites in an attempt to cast  you in a negative light. It wasn't that long ago that a client pulled up her MySpace page to find that she was already "single" and a "swinger." Of course, her husband denied making those changes and tried to hold it against her in court. Wasn't successful, but I guess he deserves an "A" for creativity - not to mention fabricating evidence.

Minnesota Divorce Lawyers: 10 Signs You've Hired a Bad One

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.

Eight Tax Tips for Divorcing Couples

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.

Divorce: 100 Tips and Resources to Get You Through

Even a "love coach" recognizes the need to plan for the worst. Blogger Christina Laun has compiled a list 100 tips and resources to turn to for support during the early stages of divorce. Link to Christina's article to check out the terrific divorce resources she has included on her Blog. We've listed (and endorse) her "tips" here:

  1. Accept that it’s over. Your divorce may have come as a surprise and you may not be the one that wants the split, but hanging on to a relationship where one partner isn’t committed is just going to make you more miserable in the long run. Start learning to accept that your marriage is over and thinking about your life after the split.
  2. Set realistic goals. Like with any breakup, it’s going to take time to get over your divorce. Set personal goals for yourself that are both challenging and realistic to help you get back on track.
  3. Get to know the laws of your state. Depending on the state you’re in, what you’re entitled to after a divorce can vary widely. Read up on divorce law in your state to find out what you’ll be facing in court.
  4. Protect your assets. You may think it can’t happen to you, but some spouses have drained joint accounts, racked up huge expenses and more when they know divorce is on the horizon. As soon as you can, dissolve joint accounts, resolve life insurance policies and make sure other valuables are in a secure, third-party location until the divorce is over.
  5. Be open and honest with your children. If you have children, be honest with them about what is going on. Avoid laying blame and talking bad about your spouse, however, as this will only serve to confuse and hurt children.
  6. Keep it civil. You may be fighting mad at your spouse but screaming at them and being unnecessarily mean won’t make you feel any better. Keep things as calm and as civil as you can.
  7. Be reasonable. Marriage is all about compromise and so is divorce. Be reasonable in what you expect to take away from it so neither of you end up with additional animosity towards one another.
  8. Seek out support. Going through a divorce can be rough and you’ll likely need the support of friends and family to get through it. If you don’t feel you can talk to them, find a support group or therapist where you can vent.
  9. Hire a lawyer you trust. Getting a good lawyer is essential to not getting taken for a ride during your divorce. Try to find someone that your friends and family can recommend or whom you feel comfortable with.
  10. Don’t settle for less than you’re entitled to. It may be tempted to cut negotiations short just to get things over with, but taking less that you deserve will hurt you in the long run. Keep negotiations calm and collected and follow through to the end.
  11. Avoid forcing children to choose sides. No matter who is at fault for the divorce, children are going to love and want to be with both parents. Don’t force children to choose sides or use them to pass on hurtful messages to your spouse.
  12. Keep yourself healthy and rested. With all the stress from a divorce it can be hard to make time to eat right, get enough sleep, and generally take are of yourself. You aren’t doing yourself any favors by doing this, however, so set the time aside to tend to your own needs.
  13. Don’t say or do anything you don’t want to show up in court. You may have a lot of choice words for your spouse, but during a divorce it’s probably better to keep them to yourself. You never know what may be used against you in court.

What Information Gathering Tools Are Available to My Lawyer?

Many of our clients are worried about the fact that they believe their spouse is hiding assets or won’t provide the information necessary to move a case along. The Minnesota Rules of Civil Procedure give divorce attorneys a series of tools that allow us to gather information in a number of ways, including:

  • Interrogatories;
  • Requests for Production of Documents;
  • Requests for Admission;
  • Depositions; and
  • Subpoenas

The first tool that we utilize involves a series of written questions to your spouse. These are called interrogatories. Your spouse must provide us with written answers to all of our inquiries within thirty (30) days. The answers must be sworn to and signed before a notary. Interrogatories are an effective tool to use in gathering financial information.
 

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