Attorneys Eidsness and Nilsson Featured in Minnesota Lawyer

May 14, 2012

The work of Minneapolis law firm Henson Efron’s family law attorneys, Alan C. Eidsness and Melissa J. Nilsson, was featured in the May 11 edition of Minnesota Lawyer. The article, titled “S Corporation Distributions Not Income,” features the decision of the Minnesota Court of Appeals, which held that distributions made to an S corporation minority shareholder that were transferred to another entity for a legitimate business purpose, were never received by the shareholder, and were transferred without any intent by the shareholder to avoid her child support obligation, should be excluded as gross income for purposes of calculating child support.

The Court of Appeals further held that distributions made to a subchapter S corporation shareholder for the sole purpose of paying the shareholder’s pro-rata share of the undistributed corporate pass-through income and on the transferred distributions, should also be excluded as gross income when calculating support. Eidsness and Nilsson successfully secured a reversal from the Court of Appeals, after the trial court had issued a decision to include both sources as gross income for support purposes.



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