I can’t pay that . . . I lost my job. Retroactive Modification of Child Support and Spousal Maintenance Payments.

Written By: Gadtke & Beyer, LLC | Published On: 8th January 2010 | Category: Child Support, Spousal Maintenance | RSS Feed | Comments

How does the law deal with people who lose their jobs and can’t afford to make child support payments or spousal maintenance payments while searching for new work?

Not very compassionately. In 2006, the Minnesota legislature further limited a child support or spousal maintenance obligor’s ability to seek retroactive modification of their child support or spousal maintenance order. Minnesota Statutes Section 518A.39, subdivision 2(e), provides that a motion to modify child support or spousal maintenance may be made retroactive only from the “date of service of notice of the motion on the responding party.” The effect of this statutory change was to remove all of the exceptions to the general prospective modification rule. Thus, as currently written, there are no exceptions (in either caselaw or statute) which allow child support or spousal maintenance obligors to seek retroactive modification of their existing orders.

Because most non-lawyers don’t understand that it is impossible, at a later date, to go back and fix the problem. This is especially true for self-employed individuals, where income calculations are based on a business’s cash flow rather than an individual’s take-home pay. We have dealt with many people who, through no fault of their own, miss a few months of child support or spousal maintenance payments while unemployed, only to subsequently discover that they are liable for thousands of dollars of interest-accruing debt. High income earners tend to be particularly hard hit by these rules because it usually takes them longer to find replacement work. Many people mistakenly believe that the Court can retroactively forgive or modify a child support or spousal maintenance obligation during a period of past unemployment. The rules against retroactive modification forbid that, however. Don’t let your client’s pride hurt their bottom line.

by Robert W. Gadtke




Keeping Costs Down

Written By: Gadtke & Beyer, LLC | Published On: 6th January 2010 | Category: Attorney's Fees, Divorce Process | RSS Feed | Comments

Divorces are expensive. Then again, so are weddings. Everything is relative. But, from a financial standpoint, divorces can be particularly problematic because the income stream(s) that used to support one household, is now, suddenly, required to support two households. This doesn’t even consider the financial obligations created incident to a divorce (i.e., child support or spousal maintenance), nor does it include the cost of attorney fees. It is safe to say that for all but the wealthiest of people, divorces cause budgetary and standard of living problems.

While many of the financial issues in a divorce are beyond your control, there are some things that you can do, as a client, to keep your attorney fees down. For starters, keep track of your financial records and provide them to your attorney. Keep things like your payroll check stubs, bank account statements, bills, and tax returns. This sounds pretty basic, but many people don’t routinely retain these documents. Your attorney will certainly want this information. It is cheaper for you if you can provide these documents to your attorney, rather than to pay your attorney to go find them for you.

Another tip – before you pick up the telephone to call your lawyer, ask yourself whether the issue you are calling about really requires your attorney’s attention. Many of the day-to-day issues people face during a divorce don’t require the assistance of an attorney. It is often possible, for example, to change a parenting time pick-up or drop-off time or location by communicating directly with your spouse. As uncomfortable as it may seem, most people will be a part of their ex-spouse’s life for years to come. Obviously, however, if your case involves a no-contact order from the Court, do not personally contact your spouse. If you have questions, contact your attorney.

Try to save your attorney’s time (and your money) for the bigger picture issues in the case, like resolving child custody, child support, spousal maintenance, and property distribution.

by Robert W. Gadtke




Understanding Early Neutral Evaluations (ENEs)

Written By: Gadtke & Beyer, LLC | Published On: 4th January 2010 | Category: Alternative Dispute Resolution, Divorce Process | RSS Feed | Comments

As many of you probably already know, there are a lot of acronyms used in family law cases. One common example is what is referred to as an “ENE.” ENE is short for “Early Neutral Evaluation.” It is a program offered by Hennepin County Family Court Services to help parties negotiate a settlement to custody and/or parenting time issues. It is becoming increasingly popular in other counties as well.

At its most basic, an ENE is a hybrid between mediation and a full custody evaluation. Although ENE’s are sometimes available to deal with financial issues, the ENE’s run by Hennepin County Family Court Services address only custody and parenting time disputes. ENE’s typically occur within a relatively short time after a case is filed with the Court. Although participation in the program is technically voluntary, many judges strongly encourage the parties to participate. Hennepin County Family Court Services statistics show that a large percentage of the people who take part in the ENE program resolve at least a portion of their custody and/or parenting time disputes during the process.

If you decide to participate in an ENE, both parties and their attorneys (if represented) will meet with a male and female member of the Hennepin County Family Court Services staff. These staff members are experienced custody evaluators with social work backgrounds. During the ENE, both sides are given an opportunity to present their concerns and to explain what they would like to see happen regarding custody and/or parenting time. After both sides have made their presentation, the evaluators offer feedback. The purpose of the feedback is to let the parties know what type of custody and/or parenting time recommendations are likely to result from a full custody evaluation. Because full custody evaluations can take up to five (5) months, an ENE can be a much quicker way to get feedback from experienced custody professionals regarding the custody and/or parenting time issues in your case.

After the feedback is provided, the remainder of the session is devoted to exploring settlement. The ultimate goal is to reach a negotiated settlement with your spouse. If a settlement cannot be reached, the ENE staff simply reports to the judge that no settlement was reached. The entire process is confidential. The judge does not know which party refused to agree with the evaluators’ recommendations. Because the ENE staff has no decision making authority, many people believe that there is nothing to lose (and potentially everything to gain) by participating in the program.

by Robert W. Gadtke




What does it mean when you say that Minnesota is a “No Fault” state?

Written By: Gadtke & Beyer, LLC | Published On: 2nd January 2010 | Category: Divorce Process | RSS Feed | Comments

Many people don’t understand what we mean when we tell them that Minnesota is a “no-fault” divorce state. The term simply means that an individual is not required to prove grounds for divorce. As recently as the early 1970s, people had to prove that sufficient grounds existed before a Court could legally grant them a divorce. The grounds included, amongst other things, adultery, abuse, desertion, etc. Imagine living in a world like that. Private detectives were frequently used to “catch” a spouse committing some kind of inappropriate behavior. Today, all that needs to be proven is that there has been an “irretrievable breakdown of the marriage relationship.” Generally speaking, if one spouse serves and files a divorce petition alleging as much, there is not much the other spouse can do to stop the divorce.

Sometimes clients mistakenly believe that they will have an upper-hand in the divorce proceedings if they can prove that their spouse had an extra-marital affair. Other clients mistakenly believe that they may be entitled to a more favorable financial settlement if they can prove that their spouse is the bad actor. Both beliefs are incorrect. Minnesota Courts do not punish people simply because their conduct “resulted” in a divorce. After all, a divorce is a civil, not a criminal proceeding. Punishing people for their conduct is precisely what the law sought to prohibit with the enactment of “no-fault” divorce.

Most judges don’t look favorably upon people who attempt to introduce evidence of the other party’s fault into their divorce case. Courts often view such behavior as an attempt to taint the Court’s image of the other party in a way not allowed by law.

Understandably, clients often do not like it when we explain the concept of “no-fault” divorce to them. People are often hurt and angry at their spouse, and feel that their spouse should have to pay in one way or another. Please do not be offended if we tell you that “it doesn’t matter” that your spouse is at fault. It only doesn’t matter in a legal sense. In an emotional sense, it very much matters.

by Robert W. Gadtke




Understanding Minnesota’s New Child Support Law

Written By: Gadtke & Beyer, LLC | Published On: 29th December 2009 | Category: Child Support | RSS Feed | Comments

January 2008 marked an important point in the life of Minnesota’s new child support law. Effective January 1, 2008, people with existing child support orders (i.e., child support orders entered before January 1, 2007) were allowed to petition the court to modify the terms of their child support order to reflect the requirements of the new child support law. As many of you probably know, child support under the old law was calculated as a percentage of the noncustodial parent’s net monthly income. Under the new law, child support is calculated based upon the combined gross monthly income of both parents. This new calculation method has the potential to dramatically affect a person’s child support obligation.

Before the court will apply the requirements of new law to your case, however, you must be able to show that the terms of the existing child support order are unreasonable and unfair. The court presumes a child support order to be unreasonable and unfair if: (1) the application of the new child support guidelines results in a child support obligation that is at least 20% and at least $75 per month higher or lower than the current child support order; (2) the medical support provisions of the current child support order are unenforceable by the county; (3) the current order requires a parent to provide health care coverage for a child and that coverage is not available; (4) the existing child support obligation is in the form of a percentage of income and not a specific dollar amount; or (5) the gross income of either parent has decreased by at least 20% by no fault or choice of that person. See MINN. STAT. § 518A.39, subd. 2(a) (2008). A child support order may not be modified simply because you have a new child with a new partner. See MINN. STAT. § 518A.39, subd. (c) (2008).

It is important to understand that the law places strict limits on a parent’s ability to seek retroactive modification of his/her child support obligation. In other words, the law prohibits a parent from requesting that the court modify his/her child support obligation back in time to a period before the motion was brought. The law only allows the court to change the child support order going forward (i.e., from the date that the motion was served on the other party). What this means for you is that if you believe a modification of your child support order would result in a different child support amount, you must make the motion as soon as possible.

While the new law uses a new method to calculate child support, it is not always apparent what the new obligation will be under the law. Sometimes, child support calculated under the new law results in a higher child support obligation. Other times, child support calculated under the new law remains virtually unchanged from the child support calculated under the old law. As a result, I strongly encourage you to contact us to determine whether a modification of your child support obligation would be in your best interests. For a small fee, we can recalculate your child support obligation to determine whether you should seek a modification under the new law.

Finally, the new law also provides noncustodial parents with what is commonly referred to as a “parenting expense adjustment.” The child support adjustment attempts to recognize that noncustodial parents frequently spend money on their child/ren during their parenting time. The amount of the parenting expense adjustment depends upon the amount of parenting time that an individual has with their child/ren. See MINN. STAT. § 518A.36, subd. 1(a) (2007).

by Robert W. Gadtke




5 Tips to Understanding Child Support in Minnesota

Written By: Gadtke & Beyer, LLC | Published On: 4th January 2009 | Category: Uncategorized | RSS Feed | Comments

Child support is a difficult issue.  Everyone has an opinion about it.  And while many things in family court are open to debate, this one is not:  The Judge Will Order the Noncustodial Parent to Pay Child Support to the Custodial Parent.

But, that’s hardly the end of the discussion.  How child support works, how much it costs, and what happens if you don’t pay matter just as much as whether it is ordered.

From our experience representing people in family court, here are the Top 5 things you need to know:

1.   What Do They Mean When They Say Child Support?   It depends on who you’re talking to.  Technically, the phrase “child support” includes three things:

  • Basic Support — think cash payment;
  • Child Care Support — think daycare costs; and
  • Medical Support — think health insurance coverage 

More commonly, though, when people say “child support” they are referring to Basic Support.  Don’t assume that they don’t care about the other forms of support.  They are probably just using the term as a kind of short-hand.

2.   How Basic Support is Determined?  This is an oversimplified explanation, but it will get us started.  Basic child support is based on the gross monthly income of both parents – the PICS (“Parental Income for Child Support”).  We add the PICS numbers together and then look to a formula developed by the legislature to tell us how much money the parents, as a team, owe to their children.  We then divide this total amount between the parents based on their percentage of income and the amount of time they spend with the kids.

3.   Where Do They Get The Formula?  The Judge gets the formula from the Minnesota State Legislature and the Legislature gets the formula from the United States Department of Agriculture (“USDA”).

Every year, the USDA researches and publishes a report on the cost of raising a child in the United States.  The Minnesota Legislature determines whether it agrees with the figures and adjusts them accordingly.

The Minnesota Legislature is the place to complain if you don’t like the numbers.

4.   What Happens If You Don’t Pay?  You could go to Jail.  Seriously.  Things have changed a lot in the last fifteen years.  If you don’t pay your child support, the County Attorney’s Office can suspend your driver’s license or occupational license.  They can seize your property.  And, if you still refuse to pay, they can revoke your passport or put you in jail.

We have dealt with this issue many times.  Judges have little sympathy for people won’t pay their child support.  Your obligation to support your children comes first.

5.   What Happens if I Lose My Job and I Can’t Pay?  Contrary to popular belief, losing your job does not change or suspend your child support obligation.  You are required to keep making the same monthly payments until a judge orders otherwise.

We have had clients accumulate thousands of dollars in debt in just a few months.  And the law is VERY CLEAR, you cannot retroactively modify your child support.  The Judge doesn’t have the power to eliminate the past support you owe, no matter how unfair it may seem.

To avoid this problem, if you lose your job, you need to immediately file a motion to modify child support.

If you appreciate our efforts to keep our clients informed and would like to have us represent you in your case, please contact us by telephone at (952) 345-8004, or fill out the contact form on the side of the page.




Deciding Where to Live During a Divorce

Written By: Gadtke & Beyer, LLC | Published On: 3rd January 2009 | Category: Uncategorized | RSS Feed | Comments

By the time a divorce starts, it is normal for a person to want to live apart from their spouse.  In our experience, most people are unhappy for a long time before they decide to get divorced.  And living in the same house as your soon-to-be-ex can seem almost unbearable.

But before you decide to make a move, it’s important to understand your options.  Here’s the CliffsNotes version:

1.   The Law:  If you were living in the same house as your spouse at the time the divorce started, both people have the right to continue living there until one of the following occurs: (1) A person voluntarily moves out or (2) the Judge orders a person to move out.

2.   Choosing to Leave Voluntarily:  Deciding to move out voluntarily is a big decision.  It should not be made lightly.  You need to talk to your attorney first.  In addition to having to find a new place to live, you can sometimes be required to pay expenses at the marital home.

If your case involves children, moving out can adversely effect your right to parenting time.  Judges work hard to try to minimize the change a divorce causes in the life of a child.  They care very little about the wants and needs of the parents.  Moving will make it more difficult for you to see your children, especially if you move far away.

3.   Ordering a Person to Move:  A judge can order a person to move out of the house during a divorce case in two ways: (1) after a Temporary Hearing or (2) as part of a separate Domestic Abuse case.  You are not obligated to leave just because your spouse tells you to do so.

Lesson:  Deciding to move out of the house is a big deal.  Spend some time thinking about it.  And if you are represented by an attorney, talk to them first.

If you appreciate our efforts to keep our clients informed and would like to have us represent you in your case, please contact us by telephone at (952) 345-8004, or fill out the contact form on the side of the page.




5 Ways to Get in BIG Divorce Trouble and Not Even Know It

Written By: Gadtke & Beyer, LLC | Published On: 1st January 2009 | Category: Uncategorized | RSS Feed | Comments

If you’re anything like most of our clients, the rules of divorce can seem downright bizarre. It’s a bit like having a parent tell you, “Don’t do this. Don’t do that.” Except in the case of a divorce, if you violate the rules you can get in serious trouble – including jail.

Here’s what I have found to be the 5 most common ways people in divorce cases get in trouble and don’t even know it:

1.  Writing a Threatening Email or Leaving an Intimidating Message:  Think Alec Baldwin or Mel Gibson. There is no quicker way to get labeled as an abuser or an unstable influence on your child than to be recorded acting out of emotion. Stick a fork in you. You’re done.

The sad thing is that most people are neither abusive nor unstable. They’re just upset. Take a moment to ready yourself before acting. Resist the urge to tell your spouse exactly how you feel about their behavior. You will probably be happy that you did later.

2.   Moving Money Around Just Before (or During) a Divorce:  This is our favorite argument to use against an opposing person in a contested divorce case. There is no better way to paint a person as sneaky or dishonest than to show that they are trying to hide money from their spouse. It’s just too much. The case is over. The judge won’t trust you anymore.

But, you don’t have to actually hide or conceal money to be labeled as dishonest. All you have to do is engage in questionable banking or financial transactions. If you begin transferring money between accounts in ways you didn’t do before, you expose yourself to this argument. Don’t adopt new financial management strategies during a divorce.

3.   Taking the Kids and Leaving Home: Women often make this mistake.  They incorrectly assume that because they have been the kids’ primary caretaker during the marriage they can continue making all of the decisions during the divorce. It doesn’t work that way. Once a divorce is started, both people give-up control over their lives – including the right to make decisions about their children.

Unless you or your children’s physical safety absolutely requires a move, don’t move out of the marital home without first taking to your attorney. We’ve had a few clients who likely would have won their cases – they were stay-at-home moms with working spouses – who ended-up losing custody of their children because they moved too far from home.

Judges understand the emotional strain kids experience during divorce. They try to limit that strain by preventing unnecessary change. And while moving your residence may seem necessary to you, the judge may not see it that way. Don’t cause yourself (or your children) any unnecessary pain by making an unnecessary move.

4.   Changing the Locks:  If you are still living with your spouse (and by “living with your spouse” we mean if your spouse could reasonably claim that they are still living with you), DO NOT change the locks on your house without first talking to your attorney.

Until a Judge orders otherwise, both people have the right to remain living in the home. Unfairly locking out your spouse sends the message that you are “in charge,” which is not a good message to send in family court.

We see this problem a lot in cases where people are informally separated before the divorce starts. After the paperwork is served (or sometimes just before, if the person is paying attention) the person decides to move back into the house. It’s usually a transparent attempt to gain an advantage in the custody case. It rarely works. But, don’t allow the focus to be shifted to your decision to unfairly exclude them from the house.

5.   Canceling or Changing Insurance Coverage:  More than just getting you in trouble with the Judge, this mistake can cost you money for years to come. You may end up being responsible for all of the costs incurred as a result of your action. And because this sometimes involves health insurance coverage, the costs can be enormous.

In our practice, we have never seen a situation where a person would legitimately need to cancel or change their insurance coverage that couldn’t wait until we had a hearing with the Judge. The coverage was in place before your divorce. It can stay in place for a few months longer.

If you appreciate our efforts to keep our clients informed and would like to have us represent you in your case, please contact us by telephone at (952) 345-8004, or fill out the contact form on the side of the page.




Top 5 Ways to Save Money on Your Attorney Fees

Written By: Gadtke & Beyer, LLC | Published On: 1st January 2009 | Category: Uncategorized | RSS Feed | Comments

1.  Help Us Gather Documents:  For some reason, gathering financial documents seems to be a big problem for people in divorce cases.  Most people don’t take the time necessary to find copies of their own documents.  And the people who do give us documents, tend to give us very few of them. 

Take the time to assemble and organize your credit card statements, your bank statements, and your paycheck stubs.  The more time you spend on the front-end, the more money you will save on the back end.

Don’t throw away any of your bank statements or pay stubs, even
if you did in the past.  Send them to us instead.

2.  Plan Communication with Us:  Every time you call us, you get billed.  It’s a message worth repeating.  Some clients spend hundreds of dollars each month on email messages.

If you can organize your thoughts and questions, we can cover more ground faster.  It takes us about the same amount of time to answer three well-thought-out questions as it does to answer one disorganized one.

3.  Don’t Fight for Principle:  This one is a huge money waster.  You can’t win everything.  No one does.  Successful businesses understand this principle.  You should too.  Make an honest attempt at compromise.

Try not to focus on whether your spouse is “winning.”  No one really wins in a divorce.  Rest assured that there are things your spouse thinks you’re “getting away with unfairly” too.

4.  Respond to Our Requests:  If you don’t know it already, you will soon discover that the court system moves very slowly.  Contested litigation can take a long time.  However, the faster you respond to our requests, the more likely it is we can reach a quick settlement.  By acting quickly, you allow us to take charge of the case and to assume a proactive role.

Being proactive allows us to “strike while the iron is hot.”  We have seen a lot of deals fall through because the other side changes their mind after a few weeks.

5.  Make Decisions and Don’t Look Back:  We understand that divorce is traumatic.  But, you need to make decisions in your case.  When you refuse to pick a road to go down, you end-up standing in the same place.  And for most of our clients, the place you’re standing is not a good one.  Help us help you.

Stay the course.  Changing your mind midstream is not only an expensive mistake, but it can damage your credibility with the Judge.  Sometimes, the damage is beyond repair.

If you appreciate our efforts to keep our clients informed and would like to have us represent you in your case, please contact us by telephone at (952) 345-8004, or fill out the contact form on the side of the page.




Gadtke & Beyer Customer Service Guarantee

Written By: Gadtke & Beyer, LLC | Published On: 1st January 2008 | Category: Uncategorized | RSS Feed | Comments

At Gadtke & Beyer, we understand that your case is important to you.  It is important to us as well.  And we are committed to doing everything possible to make sure that your identity is respected and that your dignity is preserved at all times throughout the process.

The law prohibits us from guaranteeing the outcome of your case.  But, it does not prohibit us from guaranteeing the service you receive.  We promise to provide you with the very best in customer service.  As evidence of our commitment, We Promise to Always Do the Following:

  1. Listen When You Speak:  We work for you.  We promise to always give you our full, undivided attention whenever we meet.  We also promise to listen to your ideas, concerns, and worries, no matter how small they may seem.
  2. Update You on the Status of Your Case:  We promise to update you on any case developments the same day they occur.  No exceptions.  You deserve to know exactly what is happening on your case at all times.
  3. Timely Respond to Telephone Calls and Emails:  We promise to respond to your telephone calls and emails by the end of the next business day, usually much sooner.
  4. Timely Send You Copies of All Mail Related to Your Case:  We promise to forward you copies of all mail related to your case on the day it is received by our office.
  5. Give You Our Honest Opinion:  We promise to always give you our honest opinion (based on our experience and knowledge of the law) about any case goals or strategy you may be considering, even if it means telling you something you do not want to hear.

 If, at any time during your case, we fail to deliver on any of our customer service guarantees, please let us know.  We will apologize for our mistake and do what is necessary to fix the problem.  Your business is important to us.  Thank you for the opportunity to serve you!

Robert W. Gadtke and Marcus P. Beyer




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