Preventive Family Law for Nevada

What You Should Know About Alimony in Nevada - Part II

In determining whether an award of alimony is appropriate in any given case, the court in Nevada considers, among other factors, such things as:

·        The financial situation or circumstances of each spouse;

·        The nature and value of the respective property of each spouse;

·        The contribution of each spouse to any property acquired during their marriage;

·        The length of the marriage;

·        The income, earning capacity, age and health of each spouse;

·        The standard of living during the marriage;

·        The career before the marriage of the spouse who would receive the alimony;

·        The existence of specialized education or training or the level of marketable skills attained by each spouse during the marriage;

·        The contribution of either spouse as homemaker;

·        The award of property granted by the court in the divorce, other than child support and alimony, to the spouse who would receive the alimony; and

·        The physical and mental condition of each party as it relates to the financial condition, health and ability to work of that spouse.

Consider Carefully Before Accepting Guardianship of a Child

This article come to us from the Financial Transitions March 2008 Newsletter published by Wachovia Securities,

When asked to served as the guardian of someone's minor children in the event of his/her death, it is usually meant as a compliment.  However, don't accept this role without giving it serious thought.  Consider the following:

Are your lifestyles compatible? 

Go over all details involved in raising the children.  Will the children have to relocate far from their current home?  It is difficult to lose parents, but it becomes even more traumatic when the children must relocate away from friends and school.  What are the parent's preference regarding education, religion, lifestyle, and other factors?  However well does your family get along with their children?  Consider the impact on your children, including the fact that you will probably have less time available for them.

How much financial support will be available? 

This involves more than making sure money is available for college and other expenses directly attributable to the children, such as clothing, medical expenses, and entertainment.  Additional children in your house will increase many of your bills, including food, utilities, transportation costs, etc.  Your house may now be too small, requiring an addition or moving to a larger home. 

Are you comfortable taking on responsibility for the children's finances? 

Just because you agree to take physical custody of the child does not mean you have to handle their finances.  You may feel more comfortable with another person involved to review how the money is spent.

Has a contingent guardian been named? 

Find out if a contingent guardian has been named in case you cannot serve.  However, do not use this as an excuse to say yes when you really want to decline.  It is better to indicate that you do not want to take on this responsibility now, so another guardian can be chosen.  Also if your situation changes in the future, inform the parents immediately. 

Rolling the Dice on Minority Interest Discounts?

The term "minority interest" when used in the context of a divorce settlement generally refers to real estate and/or business interests in which the parties hold less than a majority share.  If you are the owner of the property being valued, you may want to claim a discount against the value of the property.  Whether you think a discount is appropriate, and what amount that discount should be, probably depends upon which side of the argument you are on.

Generally, the argument is made that a discount in value is appropriate because the minority interest owner has lack of control, lack of marketability, and/or has a cost to partition the interest. 

For example, assume that you own an apartment building with four other people.  1 person owns 60% of the property and each of the other owners has a 10% interest.  The value of the property is 1 million dollars.  If you were one of the 10% owners, your spouse will likely argue that your 10% interest is worth $100,000 or 1/10th of the total property value.  However how much control do you have over the property.  If the business decisions are made by majority rule, you may have very little control over the way the property is managed.  Additionally, do you have the right to sell your 10% interest to anyone that you choose, or do the other owners have a say.  If there are restrictions on your ability to sell the property that may effect the marketability of the property.  The argument being that if you had to sell your interest in the building you might receive less than $100,000 since you would have a smaller number of people you could market the interest to. 

The courts in Nevada have allowed discounts for minority interests, however the amount of the discount has varied significantly and seems to depend upon a number of factors such as:

• The size of the interest
• The number of other owners involved
• The practicality of dividing the interest
• The type of business interest and/or use of the land
• The availability of financing for the undivided interest

Before assigning a value to a minority business interest it is always wise to check with a qualified business or real estate appraiser who can provide additional information about appropriate discounts for minority interests.