Denial of Spousal Maintenance Not Abuse of Discretion In Considering Investment Income From Property Settlement Sufficient To Meet Monthly Needs

In Curtis v. Curtis, A14-1841, (Minn. Ct. App. June 22, 2015) the Minnesota Court of Appeals affirmed a trial court decision to deny a wife’ request for spousal maintenance, based on imputed income from the reallocation of a property settlement from growth investments to income investments based on an  expert who testified wife could earn 7 percent on her investments if she allocated them from growth funds to income funds. The expert testimony was not rebutted at trial. The court determined the trial court did not abuse its discretion by considering the reallocated investment strategy  and that the investment income was sufficient to meet wife’s monthly needs. The court noted that the reallocation of investments in the property division was not an invasion of assets or improper in light of the expert testimony to support the determinations.

In Curtis the court was faced with a couple who was married in 1990 and separated in 2012 or 2013. Husband worked as a dentist and managed the parties investments. They had two children one was now an adult and a 16 year old son. Wife was awarded the house and investments totaling $2,209,399 or 57 % of the marital estate , while husband received 43% of the estate.  Based on expert testimony the trial court determined wife could reallocate growth funds to income producing funds and meet her reasonable monthly expenses. It was noted the spousal maintenance statute, Minn. Stat. 518.552, subd. 2(a) requires a court to consider financial resources, which include income generated by liquid assets citing to Fink v. Fink, 366 N. W. 2d 340, 342 (Minn. Ct. App. 1985).

The court stated the trial court’s decision did not invade her property award to meet her expenses and was not an abuse of discretion. A dissenting Judge noted the tax consequences of reallocating the assets would be significant and was not considered.The court, however, found the trial court was within its discretion not to consider the tax consequences citing to Maurer v. Maurer, 623 N. W. 2d 604, 608 (Minn. 2001), which found that whether to consider the tax consequences of a property division lies within the trial court’s discretion.

This case raises many potential issues to be carefully considered in spousal maintenance cases and makes it clear it is important to present expert testimony on potential investment income and its impact on cash flow or other important financial issues.

New Custody Law Factors Starting August 1, 2015

After years of debate Minnesota has substantially revised the “best interest factors” to determine Custody under Minnesota Statute 518.17, effective August 1, 2015. There have been meetings and substantial debate since 2012 on how the custody laws should be modified. An important overriding factor considered was to promote the best interests of the child by promoting the child’s healthy growth and development through safe, stable, nurturing relationships between a child and both parents. The factors now emphasize pieces that impact a child’s safety, stability and well-being and nurturing relationships. A shift now more explicitly looks at a child’s relationship with both parents.

The prior law included 13 factors and an additional 4 factors if either party requested joint physical custody. The new law now relies on 12 factors in each case.

1) How does a proposed custody arrangement impact a child’s development and a child’s physical, emotional, cultural, spiritual, and other needs? This is to focus on the child’s needs rather the parental requests as a factor.

2) A court shall consider any special medical, mental health, or educational needs of the child requiring special parenting arrangements. This is a whole new factor.

3) A court shall consider the reasonable preference of the child, if the court determines the child to be of sufficient ability, age, and maturity to express an independent, reliable preference.

4) A court shall determine whether domestic abuse has occurred in the parent’s relationship or household and the implications of the abuse for parenting and the child’s safety, or developmental needs.

5) A court shall also look at whether any  physical, mental or chemical health issue of a parent impacts a child’s safety or development.

6) A court shall consider the history and nature of each parents participation in providing care for the child. Appears to simply the prior primary caretaker factor.

7) A court is to look at the willingness of each parent to care for the child, to meet the child’s developmental, emotional, spiritual, and cultural needs and to maintain consistency and follow through with parenting time.

8) A court shall evaluate the child’s well-being and development of changes to home, school, and community.

9) A court shall evaluate the effect a proposed arrangement on realtionships between the child and each parent, siblings and other significant persons in the child’s life.

10) A court shall determine the benefit to the child in maximizing parenting time with both parents and the detriment in limiting parenting time with either parent.

11) Except when domestic abuse has occurred the court shall evaluate the disposition of both parent’s to support the child’s relationship with the other parent and to encourage and permit frequent contact with the other parent.

12) The willingness and ability of parents to cooperate in raising the child and to maximize sharing information and to minimize exposure to parental conflict as well as utilize methods to resolve disputes on major issues impacting the child.

The law changes are yet to be interpreted, but appear to make major shifts in emphasis on the child’s needs and yet to be broader in focusing on both parents.

In dealing with Custody issues it is always best to retain experienced legal counsel to be fully prepared to artfully advocate your concerns and interests. There are many decisions to made in custody disputes concerning the Process, Experts, Mediators or Litigation, which are best handled with the assistance of knowledgeable legal counsel.