Divorce

Divorce not only affects the parties emotionally and financially, but can also affect a party’s livelihood. Physicians in Minnesota who divorce should be particularly diligent about adhering to the terms of their divorce. Those who neglect them do so at their peril.

For example, Minnesota law allows for the court to suspend a physician’s license when they fall three months behind in child support payments or spousal support payments or both. Failure to comply with a written payment agreement approved by the court or the child support agency will cause a great deal of professional troubles. Banas Family Law, P.A. has worked with physicians to address these concerns.

A Minnesota divorce can be a trying time. If you and your spouse are getting divorced in St. Paul, you may be concerned about how your financial future will play out once proceedings are finalized. The desire to maintain the same lifestyle you upheld while together may reign high on your list of priorities. Sometimes, though, one spouse may take that consternation a little too far, and actually hide assets.

Full Financial Disclosure in a Minnesota Divorce

When getting divorced in St. Paul, both parties actually have a legal obligation known as full disclosure of finances. The duty of full financial disclosure is important because during the marriage, the couple quite possibly grew their financial income, and with it, assets. If one spouse chooses not to disclose the full extent of those assets, the other spouse could be put at a major financial disadvantage. When you're getting divorced in St. Paul, there are a number of assets that must be disclosed.

Those assets are also the ones that a spouse typically attempts to hide, and include:

• bank accounts;
• savings accounts;
• retirement plans (including 401k and IRA accounts);
• businesses; and
• real estate.

If you're getting divorced in St. Paul, the issue of hidden assets will most often come up during the division of property, when all assets are split, either by court order or settlement. This can often be a contentious time, and depending on the degree of affability between you and your spouse, you may need the mediation skills of a St. Paul family law attorney.

Warning Signs That Your Spouse is Hiding Assets in a Minnesota Divorce

The last thing you want to consider when getting divorced in St. Paul is that your spouse may attempt to hinder your future. Unfortunately, though, this can happen when your spouse hides assets.

If you think your spouse may be attempting to hide assets from you, it's best to consult with a St. Paul family law attorney. A St. Paul family law attorney is able to attain the help of experts like tax valuation specialists and forensic accountants to most accurately determine whether full financial disclosure has occurred.

Meanwhile, if you notice some of the following behaviors, it may be time to contact a St. Paul family law attorney to either confirm or put a rest to your suspicions:

• Assets that were present during your marriage are suddenly depleting or disappearing altogether.
• Your spouse's explanations don't add up to financial records.

Full financial disclosure when getting divorced in St. Paul is crucial. This way, your St. Paul family law attorney knows how to best fight for your needs. When full disclosure doesn't occur, your St. Paul family law attorney is equipped with the skills and resources to recognize the discrepancy and represent your financial interests.

When to Contact a St. Paul Family Law Attorney

Banas Family Law, P.A., will give you the personalized service you need to resolve your family law issues, whether you are dealing with a Minnesota divorce, spousal support or child custody. Contact us today for a consultation with an experienced St. Paul family law attorney - 651-361-8109.

In 2008, Minnesota averaged a 5.5% divorce rate. A somewhat more surprising pattern is the rising number of long-established couples among those getting divorced in St. Paul.

A later-in-life divorce, also known as a "gray divorce," represents a growing number of divorce cases in Minnesota and throughout the country. While previous generations may not have considered divorce as an option after a certain age, modern couples are finding that after many years of marriage, they now have different goals and may be happier leading separate lives.

While each divorce carries a set of special challenges, a gray divorce creates a new set of obstacles, many of them financial in nature. For those getting divorced in St. Paul, the decision to hire a St. Paul divorce attorney is important to ensure that your best interests are being addressed throughout your Minnesota divorce proceedings.

Characteristics of a Gray Divorce

Every couple getting divorced in St. Paul is different; however, couples going through a gray divorce are usually dealing with circumstances that are very different than young couples seeking to end their marriage.

Common characteristics of a gray divorce may include:

• the couple's marriage has been in turmoil for a long time;
• the couple share many marital assets;
• the couple's children are grown; and/or
• the couple is well established financially.

What accounts for gray divorce?

There are a few explanations as to why couples divorce later in life, including:

• The desire to follow a new path in life. This could happen with either spouse, and can manifest itself in a new career goal or perhaps a move to a new location.
• Americans are living longer. The average life span is 77 years - that's up more than 30 years over the past century, which means an increased sense of opportunity.

Financial Considerations in a Gray Divorce

In most gray divorce situations, the children are grown, but the couple may have extensive marital property including real estate, bank accounts, retirement plans, pensions, and other property that must be divided in the divorce. A St. Paul divorce attorney is often brought into the picture to help minimize what can be a financially damaging situation.

For those in long-term marriages ending in divorce in St. Paul, there are two main financial ramifications, including:

• Savings, investments and other income must be divided; and
• Each spouse has limited or no time to recoup the difference for their retirement years.

Divorce is difficult at any stage of life, so it goes without saying that a special set of circumstances arise when dealing with the dissolution of a long-term marriage. A St. Paul divorce attorney can work with you to establish solutions that will work best for your specific situation.

Get Legal Help Now - Contact a St. Paul Divorce Attorney

Banas Family Law, P.A., will give you the personalized service you need to resolve your family law issues, whether you are dealing with a Minnesota divorce, spousal support or child custody. Contact us today for a consultation with an experienced St. Paul divorce attorney - 651-361-8109.

Military divorces are slightly different than civilian divorces in matters of filing/serving, residency requirements, and property division. These differences are due, in part, to the fact that both federal law and state law govern aspects of a military divorce.

Under the federal 1982 Uniformed Services Former Spouse Protection Act, a state court is allowed to treat the retirement benefits of military personnel as either the sole property of the individual or the joint property of the individual and his/her spouse. Additionally, the Act does not specify a formula for how a state court must divide the retirement benefits in the case of divorce, though it does state that up to 50% of an individual's military retirement benefits may be awarded.

Since there is no requirement by federal law that dictates how military retirement benefits are to be divided in the case of divorce, state courts must make their own determinations based on state law.

Some states are considered community property states while others are equitable property states. In Minnesota, the court strives for a "just and equitable division of the marital property," and typically divides marital property equally between the parties.

While military retirement benefits may be subject to division between spouses, it is important to note, however, that Veteran's Administration disability benefits are the sole property of the individual service member and are not considered part of the community estate in the case of a divorce.

For additional information regarding the division of military benefits during divorce, please contact the Minneapolis family law attorneys at Banas Family Law now.

According to the United States Department of Labor, “more than 46 million private wage and salary workers are currently covered by employer-provided retirement plans in the United States.” These plans often serve as the primary source of retirement savings for the workers who have them. During a divorce, in order to have a fair and equitable division of property, one spouse may wish to claim an interest in the other spouse’s plan.

A Qualified Domestic Relations Order (QDRO) is a judgment, decree, order or court-approved property settlement agreement that recognizes the legal interest one spouse has in the other spouse’s benefits under an employer-provided retirement plan.

The division of marital property is governed by state law. However, QDROs carry tax consequences for each party involved. This means that the division of retirement interests must also comply with federal law. In order for a QDRO to be valid in Minneapolis and St. Paul it must be drafted in accordance with Minnesota law, the federal Employment Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code of 1986.

Due to the intricacies involved in drafting a valid QDRO, these orders should be drafted with extreme care and foresight to ensure your assets are divided and able to be accessed according to your wishes. A single mistake could render your money inaccessible.

An experienced attorney can help you divide your employer-provided retirement benefits while avoiding the mistakes and pitfalls commonly associated with QDROs. For additional information, please contact the Minneapolis family law attorneys at Banas Family Law now.

When filing for divorce, many people are aware of the common financial ramifications, including: property division, child and spousal support, and healthcare coverage changes. The impact of a divorce on the parties’ taxes, however, is often overlooked or misunderstood.

Divorce may affect your tax situation in a number of ways. The right to claim a dependent child will affect the amount of money owed or refunded at the end of the year. There may be money owed to the IRS from the sale of marital property, such as a house. Additionally, there are important things to know about the tax consequences of child support and spousal support payments.

Child support payments are treated as if they have no tax consequence: they are not taxable to the payee, nor are they deductible for the payor. However, spousal support typically is treated as income for the payee. As such, the payee generally must pay taxes on the spousal support payments received and the payor is allowed to deduct the money paid.

A more severe tax consequence may occur years after a couple divorces. Many married couples file their tax returns jointly. This means that each spouse has both individual and joint liability for any taxes owed for that tax year. In many cases, one spouse handles all of the finances for the household, including the taxes. If that spouse makes a mistake on the year’s tax return or purposefully claims less income than the household received, the other spouse is jointly liable for that error and any money owed to the IRS as a result.

The innocent spouse may have no knowledge that money was hidden or that the returns were done incorrectly. However, the IRS will still hold the spouse liable for the money owed unless a claim for “innocent spouse relief” is filed.

If you find yourself in a situation where the IRS is penalizing you for back-taxes owed from a year you were married and you had no control or knowledge of your financial situation at that time, you may be able to claim “innocent spouse relief.” A qualified attorney can assist you with reviewing your situation to determine whether or not you have a claim for “innocent spouse relief.”

Getting divorced is never easy. An experienced family law attorney will walk you through the process and ensure you understand the implications of divorce on all aspects of your life, current and future. For more information about the tax consequences of a divorce, please contact Banas Family Law for assistance.

Under Minnesota law, “marital property” is any property acquired by either spouse during the marriage, unless it:

“(a) is acquired as a gift, bequest, devise or inheritance made by a third party to one but not to the other spouse;

(b) is acquired before the marriage;

(c) is acquired in exchange for or is the increase in value of property which is described in clauses (a), (b), (d), and (e);

(d) is acquired by a spouse after the valuation date; or

(e) is excluded by a valid antenuptial contract.” (Minnesota Statute 518.003 Subd. 3b)

As noted above, an antenuptial, or premarital agreement, can affect the court’s determination of “marital” and “nonmarital” property by specifying what property is to be considered nonmarital in the event of divorce, separation, or the death of one of the parties.

According to Minnesota Statute 519.11, to be valid, the agreement must be signed prior to the date of marriage in front of at least two witnesses, be based upon fully disclosed financial information, and have been signed after each party had time to consult with an attorney.

For advice on either preparing or signing an antenuptial agreement in Minnesota, contact Banas Family Law at (651) 361-8109.

Traditional divorces are often highly confrontational and antagonistic, causing undue stress on the individuals involved. This adversarial approach may make it difficult for the parties to work together after the divorce is finalized, particularly in regard to child rearing decisions and parenting time agreements. Luckily, there are other options available to those wishing to dissolve their marriage as amicably as possible.

Alternative dispute resolution processes help parties come to amicable agreements outside of the courtroom. There are several types of alternative dispute resolution, including: mediation, arbitration, collaborative law, and (in Hennepin county) early neutral evaluation. These resolution processes typically produce less stress, cost less and are resolved more quickly than a traditional divorce.

Meditation is a process through which the two parties, along with their attorneys, work together to reach a mutually agreed upon settlement. A highly trained third party, called a mediator, facilitates the negotiation. Mediation is non-binding, which means if the parties cannot reach an agreement the case may still proceed to court.

Arbitration is much like mediation, except that the third party, called the arbitrator, issues a final, binding decision. Due to its binding nature, and to the fact that obtaining an appeal is highly unlikely, arbitration is most often used to settle post-divorce issues, including those involving child custody and/or parenting time.

Collaborative law is a relatively new process through which both parties and their attorneys formally agree to work together to reach a settlement. If during the course of negotiations a settlement cannot be reached, the attorneys must withdraw and the parties must obtain new representation in order to proceed to court.

A process created by the Hennepin County Family Court, early neutral evaluation utilizes a team, made up of at least one male and one female, to evaluate the case and inform the parties of the most likely resolution if the case were decided by a judge. This enables the parties to understand what would most likely happen in the event they cannot reach an agreement. This process may be used in conjunction with mediation and collaborative law.

To learn if mediation or another form of alternative dispute resolution is right for your Minnesota dispute, contact Banas Family Law at (651) 361-8109.