The Mistake of a Business Owner Regarding a Divorce

In Minnesota, all assets of the parties, including marital and non-marital assets are subject to division by the divorce court. Each party has to disclose all assets regardless if the asset is a marital asset or not. Marital assets are divided equitably in Minnesota, which generally means equally. Non-marital assets, meaning assets acquired prior to the marriage or via inheritance, bequest or gift are generally awarded to the person who claims the non-marital interest. However, any claim of a non-marital interest must be proven by the spouse making such a claim. Consider these types of assets: You own a bank account...

Common Myths About Trusts

Trusts are generally utilized as part of estate planning. There are numerous types of trusts. One of the most common types of trusts is a revocable trust, which is sometimes referred to as a living trust. if it has been properly funded, a revocable trust operates during your lifetime and after your death. You, as the grantor and settlor of the trust, own any assets that have funded into your trust, you have control over your assets and you can amend the trust at any time during your lifetime. Another common type of trust is an irrevocable trust. Irrevocable trusts...

Top Five Minnesota Employment Law Changes

The top five Minnesota employment law changes from the 2023 legislative session are: 1) recreational marijuana; 2) the revisions to the Minnesota Human Rights Act; 3) the banning of non-compete agreements; 4) a statewide paid sick and safe leave law; and 5) the expanded laws regarding pregnancy accommodations, nursing mothers and lactating employees. An honorable mention is the paid family and medical leave which is not effective until January 1, 2026. Here are some of the highlights: Recreational Marijuana: An employer will be prohibited from discrimination against employees for the off duty lawful use of marijuana. In addition, employers will no...

Employment Law Changes

There were numerous laws passed in the 2023 legislative session that impact businesses. Employers need to review all of their policies and procedures and update them, along with their employee handbooks to take into account all of the new laws. Effective July 1, 2023, there are expanded laws regarding pregnancy accommodations, nursing mothers and lactating employees. These laws apply to any employer with at least one employee. There were numerous changes to the Minnesota Human Rights Act, which is the state law prohibiting discrimination. One change revised the definition of sexual orientation, including separating out gender identity as a separate protected class....

Are you assets going to whom you want them to go to upon your death? If you do not have a will or a trust directing to whom you wish your assets to go to upon your death, the Minnesota legislature has decided that issue for you. Do you agree with the Minnesota legislature’s decision? But, have you thought that even though you do not have a will and/or trust everyone knows who gets what because you have told people so a will and/or a trust is not necessary? Your oral representations are meaningless and have no authority if you do...

Common Mistakes With Assumed Names

In our experience, there are four common mistakes that businesses make regarding assumed names. First, a business uses a name other than the one filed with the Minnesota Secretary of State (SOS).  For example, the name of your business that is registered with the SOS is Days are Long, Inc., but your business uses “Beautiful Day” as your business name.  Under this common fact pattern, you must register Beautiful Day as an assumed name, and publish the assumed name.  Second, a business files an assumed name with the SOS, but the holder of the name that is filed with the SOS...

The Mistake of a Business Owner Regarding Commission Based Compensation

In Minnesota, an employer must promptly pay a salesperson commission earned through the last day of work. Commissions earned through the last day of work “means commissions due to services or merchandise which have actually been delivered to or accepted by the customer by the final day of the salesperson’s employment.” A mistake that business owners make is not promptly paying commissioned salespersons after the employment has ended. Another mistake is not understanding that independent contractors are generally also covered under this law. Prompt payment depends on the circumstances of the commission salesperson’s end of working with your business. If the salesperson...

Exempt vs. Non-exempt Employees

Minnesota has the strictest wage theft laws in the nation. There are potential civil and criminal consequences to an employer for failure to comply with wage laws. Complying with wage laws includes paying wages owed to employees such as minimum wage and overtime. Generally speaking, employees fit into two primary categories: exempt and non-exempt. Neither the employer nor the employee get to chose the type of category. The categories have been chosen for you by laws, rules and regulations that have been enacted as well as case law. The first step is to determine whether your business is subject to the federal...

Understanding Beneficiary Designations

Beneficiary designations are important. However, its importance is often underestimated, and the consequences of underestimating their important can be severe. Consider the following hypotheticals: Hypothetical #1: Ben is single. He names his parents as his primary beneficiary on his 401(k), his bank accounts, his investment accounts and his life insurance policy. He does not have any other assets except for his furniture, furnishing, and personal belongings that are in his apartment. He then starts dating Sam and wants his estate to go to Sam upon his death. He executes a will that states that his estate goes to Sam, and then...

A Divorce Impacts Estate Planning

It is common for couples to have completed their estate planning while married. Unfortunately, many people forget to update their estate plan after obtaining a divorce. While the divorce automatically severs the ex-spouse from inheriting under a will or a trust (unless the trust specifically states otherwise), the divorce does not sever the other provisions as to the disposition of property. For example, in your will, you name your spouse to inherit, and if your spouse does not survive you, then your spouse’s parents inherit. Then you get a divorce. The divorce only changed the inheritance as to your ex-spouse, but...