Friday, October 31, 2014

WHAT CONSTITUTES INCOME WHEN DETERMINING CHILD SUPPORT?

On behalf of Askvig & Johnson, PLLP 

Like many other states, Minnesota determines the amount of child support a parent must pay by looking at each parent's income. The formula set out in Minnesota's child support guidelines will use each parent's income, as well as other factors, to give a family law judge some idea of the proper amount of child support that the judge should order a parent to pay.

While determining the amount of monthly payments by using a formula may seem simple enough on the surface, it can be quite tricky because spouses often argue over what constitutes "income". This is particularly true in situations where a person is either self-employed or has a job that offers substantial benefits over and above a cash salary.

In one recent case, an executive in charge of a college recently sought a child support modification after his cash salary was cut from $143,000 to $75,000 after the college fell upon some tough financial times. However, the man also continues to receive the equivalent of $16,000 in benefits annually, including a car and a cell phone that the man has available for his use.

While the man argued that these employment benefits should not count as "income" for child support purposes, the mother of his children and two lower courts disagreed with him. Both courts held that his overall income, including benefits, did not justify a child support modification. His case is now pending before that state's supreme court.

Particularly in situations like the case here, parents must take extra care in calculating the proper amount of child support. For example, a parent with non-traditional income can take advantage of the other parent by avoiding extra child support yet still taking home substantial employment benefits that improve his or her standard of living.


Source: The Columbus Dispatch, "Dad doesn't want hisperks to count in calculating child support," Catherine Candisky, June 12, 2013

Friday, October 24, 2014

HOW SHOULD DIVORCING COUPLES HANDLE SOCIAL MEDIA?

On behalf of Askvig & Johnson, PLLP

As residents of Minnesota are probably aware, we are living in a day and age where social media websites such as Twitter, Facebook and many more are very prevalent throughout our society. Oftentimes individuals with profiles on these websites will express their feelings about whether they are happy or frustrated. This may seem like a harmless activity and feel like a good way to vent, however, couples that are going through a divorce may want to be careful about how they handle social media websites throughout the marital dissolution process.

Postings on these websites could be brought into the courtroom. Some people have even suggested that a couple should move forward with a complete social media blackout while they are going through the proceedings. When a social media blackout is not feasible, there are a few things about behaviors on social media websites that the couple should keep in mind. These tips are valid whether it is a contested divorce or an uncontested divorce.

First of all, the individuals should update their privacy settings and also understand that even if someone is "un-friended" a mutual acquaintance can provide access to social media profiles. Second, it is important to avoid commenting publicly on the proceedings, especially those things that have happened in the courtroom. It is hard to know how those types of comments would impact a case if they get back to the judge. Lastly, avoid posting details of discussions that have taken place between client and attorney. This may serve as a waiver of attorney-client privilege and could make the spouse's case increasingly difficult.

A divorce is almost always a difficult situation for both individuals to experience. It is important that the couple handles their dealings on social media websites carefully during this time so they do not increase the difficulty of an already difficult situation.


Source: WTOP, "Navigating social media during a divorce," Neal Augenstein, Sept. 9, 2013

Wednesday, October 15, 2014

REMINDERS FOR DIVORCING COUPLES OVER THE AGE OF 50

On behalf of Askvig & Johnson, PLLP

When residents of Minnesota are asked to consider what types of couples are most likely to get divorced, many of them may believe it is the younger couples who have been married for a short amount of time. However, that is not always the case. A phenomenon known as gray divorce is becoming more and more common these days. Gray divorce occurs when a couple over the age of 50 decides to end their marriage.

Some may believe that individuals over age 50 have had a lot of time to plan for retirement and, therefore, it is at the bottom of their list of life concerns. However, that is not always the case and throwing a divorce into the mix later in life can certainly make the possibility of retirement even scarcer. In order to avoid running into problems with the inability to retire after divorce, there are a few things older couples can do upon deciding to get divorced in order to set themselves up to retire at the same age they would have expected to retire as when they were married.

First of all, it is important for each of the individuals to think carefully about what assets would be most beneficial for them to keep when they go through the division of property. Many times, people will be immediately inclined to fight to keep the house. However, houses are more likely to have unexpected and costly expenses, which could make a person's financial position difficult in the future.

The division of assets outside of tangible property may include investments. When these assets are divided in a divorce, it is important to keep in mind the tax implications of such divisions. For example, certain investments will be taxed more heavily than others. For example, when one spouse is entitled to a portion of the other's 401(k) plan, it is important that the spouse understand that there is a one-time opportunity to withdraw that money without tax penalties. However, the spouse also must be careful not to take advantage of this opportunity and withdraw too much money, which is a common mistake in divorcing couples over 50, but who are under the retirement age.

It can be confusing and difficult for divorcing couples to remember all of these pieces of advice in addition to working through all of the emotions that will likely arise during a marital dissolution. Nonetheless, it is important to be mindful of these issues when divorcing in later life.


Source: Huffington Post, "4 Divorce Mistakes ThatCan Derail Retirement," Marilyn Timbers, Aug. 27, 2013

Friday, October 10, 2014

SPOUSAL SPYING GROWING ISSUE FOR DIVORCING MINNESOTA COUPLES

On behalf of Askvig & Johnson, PLLP

A Minnesota man spent 30 days in jail for planting some high-tech tracking devices on his estranged wife's car and phone. The man and his now ex-wife were on the brink of a divorce, and the man wanted to find out whether his wife was having an affair.

While his actions may disturb some, other see them as part of a growing trend. Regular individuals can now access sophisticated spying technology once only available to government agencies and large corporations. Many couples use that technology to spy on each other both immediately before and during the dissolution of their marriage.

While one might think that spying is more common in a contested divorce so that a spouse can use evidence against the other spouse, it appears that many spouses use it simply so that they can know whether their husband or wife has cheated on them. Ironically, in most cases, a Minnesota court deciding a divorce will not factor in whether a spouse had an affair that ruined a marriage because Minnesota is a no-fault divorce state.

Still, perhaps the information that a spouse gets from spying brings some sense of emotional closure. Others may find the information helpful in a high asset divorce, simply because both the extent and the value of marital property may be a key issue.

In any event, spouses need to be careful when surreptitiously gathering information on their own, as doing so can carry significant legal consequences. Minnesota law affords a person the opportunity to gather information legally during a divorce, and those going through a divorce are probably best off to rely on that opportunity.

Source: The Wall Street Journal, "A spy-gear arms race transforms modern divorce," Steve Eder and Jennifer Valentino-Devries, Oct. 5, 2012