Archive for the ‘Property Division’ Category

ICMCs and the Early Neutral Evaluation Process

Tuesday, October 6th, 2009

In Hennepin County and Ramsey County, the family courts have adjusted to make the process more amicable for cases.  Instead of filing a case and having nothing happen for some time, the courts have been automatically setting an initial hearing roughly 3-4 weeks after the time when the case was filed.  This hearing, called the Initial Case Management Conference or ICMC for short, allows the parties to meet the judicial officer in charge of their case.  It also gives the court the opportunity to assess the issues early on and determine what the best way to handle the case would be.

The ICMC is usually a very informal hearing.  Often at ICMCs, the court will order the parties to attend a mediation or early neutral evaluation.  This gives the parties the opportunity to work together to try to work out their problems before going further in the court process and becoming more divided.  Without using any alternative to court, the parties often become more hostile and set in their ways, and settlement becomes more and more difficult.  The courts do not really want to decide such personal issues for people, and the result is often easier for everyone to follow if the parties come to an agreement on any issues without a judge’s help.

Of course, not all cases are suited for resolving through mediation or early neutral evaluation.  For example, when domestic violence is an issue, it may be necessary to have the court’s involvement throughout the process.  ICMCs allow the court to discover that early on and possibly move up any trial dates so that parties can move on with their lives.

More and more counties are recognizing the benefits of earlier involvement in family law cases.  Early neutral evaluation is being integrated into many court systems across the state, and the results have been successful.

Home Mortgages and Divorce in the State of Minnesota

Wednesday, September 30th, 2009

With the state of economy today many people are dividing up debt rather than assets in divorce.  One of the biggest decisions divorcing parties must make is what to do with their home.  It is more difficult these days for one party to qualify for a mortgage or to refinance a home than it was a few years ago. 

 Alan Burke is a Loan Officer for American Mortgage and Equity Consultants, Inc.  He says, “If there is a home involved in a divorce, the home is awarded to one party or the other.  The divorce decree can stipulate who the responsible party is for the home and the mortgage, but the credit impact does not end there for the other party, if the mortgage was taken out in both names.  The other party will still have the mortgage reporting on their credit report, and will incur the ill effects of negative credit rating if the court-ordered party does not pay the mortgage as required.  

“A mortgage is a contract.  It is a commitment to repay the money that was loaned to you. Mortgage companies do not recognize divorce decrees, they recognize the parties who applied for the mortgage and expect all applying parties to adhere to the terms and conditions of the mortgage they signed for at the closing of the loan.  Therefore, it is important to decide before the divorce what decision to make regarding the mortgage and how it can affect your personal credit.”

 

Questions to ask yourself about your home and divorce

Does it make more sense to sell the house before the divorce?  Can one person qualify on their own to refinance the mortgage in just their name? Can one person afford the whole mortgage and their other financial responsibilities on their own after the divorce?  If it’s not you, do you trust the other person to maintain timely payments on the mortgage, and other debts that are in both of your names?  (just like the mortgage companies, credit card companies do not recognize divorce decrees, either) 

 Weighing your mortgage and credit options are very important when a relationship ends. Maintaining good credit will help ease the transition after the divorce.  Being realistic of what your capabilities are to repay debt and what the other parties capabilities will be are very important to consider while determining post divorce responsibilities.

Annulment vs. Divorce: Which is Right for Me?

Thursday, September 24th, 2009

Under Minnesota law, when two married individuals plan to separate, the most common route to go is to get a divorce.  Often, people want to get an annulment for religious reasons.  However, a religious annulment and a legal annulment are two different things.  Individuals who go through the divorce process in the court system may be able to still get a religious annulment within their church.

Legal annulments are allowed under very limited circumstances.  The idea behind a legal annulment is that there was some reason the parties were unable to actually obtain a legal marriage; these reasons include an individual being under the legal age for marriage, a mental incapacity at the time of marriage, the influence of drugs or alcohol, if consent was obtained by force or fraud, or if the marriage was not able to be consummated and both parties were not aware of that before the marriage took place.  Along with only being available in limited circumstances, there are strict time frames in which an annulment action must be filed with the court.

The legal annulment process follows the same general procedure of a divorce in the court system.  Property still must be allocated between the parties.  However, the end result of an annulment is the court saying that the marriage basically never happened.  If you have questions about whether an annulment is right for you, it is best to talk to a Minnesota divorce attorney.

Quickie Divorce From the Perspective of a Minnesota Divorce Attorney

Wednesday, September 9th, 2009

Sometimes when clients come to us to get divorced, both the client and their spouse have already determined how they want their assets and debts divided and what kind of custody arrangement they would like to use.  These are sometimes referred to as “quickie divorces” because they do not take the time a typical divorce would take for negotiating between attorneys or even court appearances. 

 In a quickie divorce, it is still beneficial to have an attorney representing you.  An attorney is able to inform you of how your arrangement may impact you in the future, in ways that are not even on your radar.  As professionals in this area of law, we are able to bring to you experience with a wide variety of arrangements that work for divorcing parties, and we have the experience to share of what long-term effects certain arrangements may have on you.  Using an attorney to draft and/or review your documents will give you the added assurance that things are being done properly to protect your interests.  Also, it is not too costly when you take out the difficult portion of reaching agreements on all of the issues in your divorce.

 Another benefit of using an attorney in a quickie divorce is that oftentimes, when people think they have an agreement on all issues, they may be missing some parts to the agreement that a court requires, and the paperwork may get stuck in the process.  If this happens, it can really slow down the divorce and force you to stay married for longer than is necessary.  You may have to make court appearances even though you have an agreement on everything that you thought you needed, which costs you time and forces you to miss work.  An attorney will help you make sure that every issue is covered.  If a problem crops up in the process of filing, as is sometimes the case, an attorney is well equipped to take care of it in a timely manner. 

 One common misconception about a quickie divorce is that an attorney may be hired to represent both parties in the process.  Since the legal system is adversarial in nature, when a potential client chooses to hire an attorney to draft the paperwork, the attorney represents the party that retains them.  That means that an attorney will be able to draft paperwork that both parties agree on, but the attorney should not be giving both parties legal advice about their individual positions.  That is why it may be beneficial for both parties to hire an attorney in the limited scope of reviewing the paperwork, so that both parties may be confident in signing any paperwork.  It is acceptable and common for one party to not be represented, however.  That party would just have to sign a document stating that they knew they had a right to have an attorney, chose to not exercise that right, and agree to the terms of the divorce decree.

Effect of the Economy on Divorce Rates

Thursday, August 27th, 2009

The recent downturn in the economy has affected the amount of divorces over the past year. Our office has seen two trends:

1) Some couples are waiting to file for divorce until the market rebounds. They are concerned in the lowered value of assets such as the marital home and retirement savings accounts, and want to hold off on filing for divorce until they will be able to get some value out of the property division. Also, they may not be in a position to support two separate households and are stuck living together one way or another. There is an interesting article on this phenomenon here

2) Many couples are trying to negotiate the terms of their divorce settlement on their own, and writing up their own stipulations for the court. They are cutting costs where possible, and saving themselves the cost of hiring an attorney upfront through negotiating on their own.

The second trend may be dangerous, and in many cases it may end up costing you more money in the end. Even if both parties intend for an agreement to mean one thing, if the language is not written properly, the court will interpret the agreement to mean what it actually says. Our office, and that of other family law attorneys in the area, is seeing an increase now in the number of clients that are seeking to modify the agreement that they entered into without counsel. The clients either intended to have some rights reserved in the agreement, or they were supposed to receive something that they have not. The agreement often is written in a way that does not give the client clear recourse in the legal system. When that happens, the client ends up paying much more in legal costs to fix the problem than they would have to avoid the problem to begin with.

There are ways to keep costs low while still using an attorney. For example, a lawyer may be retained for the limited purpose of writing an agreement. The parties come to the attorney with a settlement in mind. One of the parties is formally the client, and the other party is “pro se”, which means that they are unrepresented in the process. This is because in the legal system, an attorney cannot represent both parties to an action.

Another way to keep costs low is if the parties have most details figured out, but have a few sticking points. The attorney is able to advise the client of the legal standards, explain their chances on succeeding on that claim in court, and helping the parties reach a settlement. Again, the attorney only represents one party. However, the costs are significantly lower even for both parties to have attorneys if the parties cooperate outside of the attorney’s office to reach an agreement.

It is not impossible to use the court system to fix problems in original divorce documents. However, it is in your best interest to seek the advice of a lawyer before signing anything. An attorney is able to point out potential problems with agreements that you may not be aware of. An attorney also is able to make sure that you are protecting your rights in a divorce and that all issues are handled in the most efficient way possible.

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- Our Minnesota Divorce Lawyer & Attorney represent clients throughout Minneapolis and Twin Cities including St Paul, West St Paul, South St Paul, Mendota Heights, Mendota, Richfield, Edina, Bloomington, Inver Grove Heights, Woodbury, Oakdale, Lake Elmo, Maplewood, Vandais Heights, Mahtomedi, Cottage Grove, Columbia Heights, New Brighton, Arden Hills, Shoreview, North Oaks, White Bear Lake, St Louis Park, Robbinsdale, Crystal, Bloomington, Burnsville, Apple Valley, Savage, Eden Prairie, Hopkins, Minnetonka, New Hope, New Brighton, Brooklyn Park, Brooklyn Center, Plymouth, Chanhassen and throughout the entire State of Minnesota.