Minnesota Spousal Maintenance Lawyer
• Basis for Award in Minnesota – Spousal maintenance or alimony as it is commonly known is generally awarded based on need. Minnesota courts will look to the standard of living during the marriage and the ability to pay, the education, the duration of the marriage, the contributions of the parties during the marriage, among others.
• Effect of Stipulation - Courts have the ultimate authority to grant or deny a stipulation on spousal maintenance. Minnesota courts will honor such a stipulation when it is incorporated as part of the entire property award and it has been negotiated by both parties with aid of counsel. Decisions to agree to spousal maintenance and decision on how to structure spousal maintenance will have dramatic effects in the future. An agreement that fails to accurately state the facts and law upon which the agreement is based can open the door to modifications of the award both up and down.
• Reserving Spousal Maintenance – If the court reserves the issues of spousal maintenance the parties may petition for spousal maintenance at a later date.
• Permanent Spousal Maintenance - In a response to much litigation over judicial decisions on awards and denials of permanent spousal maintenance, the Minnesota State Legislature added Subdivision 3 to the Minnesota Spousal Maintenance Statute. Minn. Stat. § 518.552, Subd. 3 reads: “Nothing in this section shall be construed to favor a temporary award of maintenance over a permanent award, where the factors under subdivision 2 justify a permanent award. Where there is some uncertainty as to the necessity of a permanent award, the court shall order a permanent award leaving its order open for later modification.” Later cases deciding spousal maintenance have shown that courts do consider this subdivision, however courts are still able to exercise discretion based on the factors for an award of spousal maintenance.
• Duration of Spousal Maintenance Awards – In determining the duration of spousal maintenance, courts are to consider all relevant factors which include: 1) the financial resources of the party seeking maintenance, including property apportioned to the party, and the party’s ability to meet needs independently; 2) the time necessary to allow a party to reintegrate into the work place in light of completing education or training to become fully or partially self supporting; 3) the standard of living during the marriage; 4) the duration of the marriage; 5) whether the person seeking maintenance was a homemaker and thus lost earnings, seniority, or benefits as a result; 6) the ability of the party to pay spousal maintenance while meeting their own needs; 7) the contribution of a party towards marital property including contribution of a spouse as a homemaker.
• Amount of Spousal Maintenance Awards - In determining the amount of spousal maintenance courts are to consider all relevant factors which include: 1) the financial resources of the party seeking maintenance, including property apportioned to the party, and the party’s ability to meet needs independently; 2) the time necessary to allow a party to reintegrate into the work place in light of completing education or training to become fully or partially self supporting; 3) the standard of living during the marriage; 4) the duration of the marriage; 5) whether the person seeking maintenance was a homemaker and thus lost earnings, seniority, or benefits as a result; 6) the ability of the party to pay spousal maintenance while meeting their own needs; 7) the contribution of a party towards marital property including contribution of a spouse as a homemaker. The two issues that the amount often turn on is the need of the party seeking spousal maintenance and the ability to pay for the party responsible for maintenance.
• Modification of Spousal Maintenance Awards – In cases of spousal maintenance, Minnesota courts retain jurisdiction unless expressly divested of jurisdiction to modify. If a court has not been divested of jurisdiction, a review of all of the factors (See Duration of Spousal Maintenance, above) will occur when a change of circumstances has occurred. Examples of changes in circumstances are an increase or decrease in earnings of either the person receiving or paying the spousal maintenance. To begin a modification a party will need to bring a motion to the court with the appropriate supporting documents.
• Spousal Maintenance vs. Property - In an effort to gain a tax advantage for the payer, certain cash property settlements are designated spousal maintenance payments. Spousal maintenance is deductible by the payer. As stated above, great care must be taken to structure such agreements so that they will pass court scrutiny and that modification is limited.
• Waiver of Spousal Maintenance - The Minnesota Supreme Court has developed “magic language” which divests a court of the ability to modify maintenance. Such waivers are also known as a “Karon Waiver.” To achieve a valid waiver four court mandated factors must be addressed. A stipulation that stops future modification does not stop a court during the maintenance period from modifying the award, this can include making the award permanent.
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