There are many creative ways to structure the sale of a business to attempt to reduce the amount divided in a property division. This one did not work.
In re the Marriage of Gill
No. A16-1421 (Minn. App. 8/14/2017)
Reversed and remanded. Judge John R. Rodenberg.
When the marital interest in a business entity is sold and includes, as part of the sale price, a provision for “earn-out” payments based on future company performance, the earnout payments are marital property, notwithstanding purchaser’s employment of one of the spouses under a separate employment agreement during the “earn-out” period.
When a purchase contract for a business specifies...