Divorce and taxes—two topics most people don’t wish to think about. However, tax issues have a substantial impact on divorce and the lives of those involved. Here are a few key divorce tax takeaways that are sometimes forgotten: Update Your Withholdings. People typically file a new form W-4 with an employer to change withholdings after...

One of the newest growing trends in Minnesota farm divorces involves both divorcing parties seeking to acquire the farm operation’s productive assets (land, machinery, equipment, etc.). In the past, it was typically presumed that the “farming spouse” will end up with the productive farm assets while the “nonfarming spouse” will receive fair compensation using other...

From time to time, I receive phone calls from potential clients who just want a “simple” postnuptial agreement. Usually, the situation involves an inherited business or other income-producing property—or some other (usually unforeseen) life-changing event that significantly impacts financial circumstances. Usually, the caller has briefly discussed the situation with his or her spouse and the...

It is estimated that in the United States over the next 20 years more than $50 trillion in wealth will transfer from the Baby Boomers to Generation X and the Millennials. That is a lot of money. This Great Wealth Transfer is not going to occur just through inheritances when Baby Boomers die. Baby Boomer...

While it has always been important to review and revise your estate plan when going through divorce, a recent Minnesota Court of Appeals decision, filed on May 23, 2022, makes doing so all the more necessary. In the Matter of the Estate of Mathew Joseph Tomczik, the Court of Appeals determined that when a former...

On May 26, 2021, the Minnesota Supreme Court filed its decision in Honke v. Honke. In that case, ex-wife received post-divorce cash gifts from her parents of $500,000.00 during the time she was also receiving spousal maintenance from her ex-husband. Ex-husband asked the trial court to reduce or terminate his spousal maintenance based on the...

When Minnesota farmers divorce, often there are insufficient liquid assets to allow the non-farming spouse to be immediately paid in full for his or her fair share of the marital estate. When that happens, the non-farming spouse is often paid over a period of time—similar to a bank that loans money to a borrower. In...