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LEGAL TERMS

FMLA

See Family and Medical Leave Act.

CLOSE CORPORATION

A corporation owned and operated by a few individuals, often members of the same family, rather than by public shareholders. State laws permit close corporation... (more...)
A corporation owned and operated by a few individuals, often members of the same family, rather than by public shareholders. State laws permit close corporations to function more informally than regular corporations. For example, shareholders can make decisions without holding meetings of the board of directors, and can fill vacancies on the board without a vote of the shareholders.

PHYSICAL CUSTODY

The right and obligation of a parent to have his child live with him. Compare legal custody.

MARRIAGE

The legal union of two people. Once a couple is married, their rights and responsibilities toward one another concerning property and support are defined by the... (more...)
The legal union of two people. Once a couple is married, their rights and responsibilities toward one another concerning property and support are defined by the laws of the state in which they live. A marriage can only be terminated by a court granting a divorce or annulment. Compare common law marriage.

CHILD SUPPORT

The entitlement of all children to be supported by their parents until the children reach the age of majority or become emancipated -- usually by marriage, by e... (more...)
The entitlement of all children to be supported by their parents until the children reach the age of majority or become emancipated -- usually by marriage, by entry into the armed forces or by living independently. Many states also impose child support obligations on parents for a year or two beyond this point if the child is a full-time student. If the parents are living separately, they each must still support the children. Typically, the parent who has custody meets his or her support obligation through taking care of the child every day, while the other parent must make payments to the custodial parent on behalf of the child -- usually cash but sometimes other kinds of contributions. When parents divorce, the court almost always orders the non-custodial parent to pay the custodial parent an amount of child support fixed by state law. Sometimes, however, if the parents share physical custody more or less equally, the court will order the higher-income parent to make payments to the lower-income parent.

EXEMPT PROPERTY

The items of property you are allowed to keep if a creditor wins a lawsuit against you or if you file for Chapter 7 bankruptcy. Most states let you keep clothin... (more...)
The items of property you are allowed to keep if a creditor wins a lawsuit against you or if you file for Chapter 7 bankruptcy. Most states let you keep clothing, household furnishings, an inexpensive car (or an expensive car on which you still owe a bundle), Social Security payments you haven't spent and other basic items. A few states let you keep your house. Following are brief descriptions of specific types of exempt property.animal exemption Allows you to keep animals such as household pets, livestock or poultry. The animal exemption varies among states. If your state simply allows you to exempt 'animals,' you may keep livestock, poultry or pets. Some states exempt only domestic animals, which are usually considered to be livestock and poultry, but not pets.appliance exemption Allows you to keep some of your household equipment operated by electricity, gas or propane. Examples include refrigerators, stoves, washing machines, dishwashers, vacuum cleaners and air conditioners.arms & accouterments exemption Allows you to keep some weapons (such as pistols, rifles or swords) and accouterments, which are the furnishings of a soldier's outfit, such as a belt or pack, but not clothes. A soldier's clothing is his or her uniform.building materials exemption Allows you to keep a certain amount of items needed to build or improve structures, such as lumber, brick, stone, iron, paint and varnish. This exemption is not available in all states.burial exemption Allows you to keep a cemetery plot, crypt, monument or the cash to purchase a burial plot. Some states allow you to claim the burial exemption only if you do not use your state's homestead exemption. States may also limit the amount exempted. This exemption is available in most states.crops exemption Allows you to keep products of the soil or earth that are grown and raised annually and gathered in a single season. For example, oranges (on the tree or harvested) are crops; but an orange tree isn't.farm tools exemption Allows you to keep the tools you use if your primary occupation is farming. Some states limit farm tools of the trade to items which can be held in the hand: hoes, axes, pitchforks, shovels, scythes and the like. In other states, farm tools also include plows, harnesses, mowers, reapers and other larger tools.furnishings exemption Allows you to keep a certain amount of furniture, fixtures in your home (such as a heating unit, furnace or built-in lighting) and other items with which a home is furnished (carpets and drapes, for example).health aids exemption Allows you to keep items needed to maintain your health, such as wheelchairs, crutches, prostheses or hearing aids. States either exempt all heath aids or limit the dollar amount of the total exemption.heirloom exemption Allows you to keep certain items passed from generation to generation which have special monetary or sentimental value.homestead exemption Protects a specified value or specified number of acres in a homestead. The amount you can protect with the exemption varies, depending on the state where you live. A few states have unlimited homestead exemptions, meaning a house worth even many millions of dollars can't be taken by judgment creditors or in Chapter 7 bankruptcy. At the other extreme, a small number of states have no homestead exemption at all.household goods exemption Allows you to keep a certain number of items of a permanent nature (as opposed to items consumed, like food or cosmetics) used in or about the house. It includes linens, dinnerware, utensils, pots and pans and small electronic equipment like radios and toasters. The amount you may keep varies from state to state.implement exemption Protects a certain amount of the instruments, tools or utensils you use to accomplish your job. Some states use this term instead of tools of the trade.in lieu of homestead (or burial) exemption An exemption available in some states only if you don't claim the homestead exemption or burial exemption. The amount of the exemption varies from state to state. It can be the approximate equivalent of the homestead or burial exemption or some amount fixed by state law. It's the same as the wild card exemption.jewelry exemption Protects certain items created for personal adornment; usually includes watches. Expensive jewelry is usually not included, although many states exempt wedding and engagement rings. Most states limit the total jewelry exemption amount, ranging from $250 to $1,000. Another term for jewelry is 'articles of adornment.'motor vehicle exemption Protects a self-propelled vehicle suitable for use on a street or road, such as a car, truck, motorcycle, van or moped, up to a certain value. For example, if your state's motor vehicle exemption is $2,500 (that's about average), your car is worth $10,000 and you still owe $8,000 to your lender, your car is exempt. You have equity of $2,000 ($10,000 - $8,000) and a $2,500 exemption to put toward it. (This assumes you can afford to keep making your car payments. If you can't, your lender will repossess your car and sell it at an auction.) On the other hand, if your vehicle is worth a lot and you don't owe anything on it, you probably won't be able to keep it, because the exemption won't cover the full amount of your equity.musical instrument exemption Allows you to keep certain instruments having the capacity, in and of themselves, when properly operated, to produce a musical sound. Pianos, guitars, drums, drum machines, synthesizers and harmonicas are musical instruments. Spoons (knocked on knees or into each other) and metal garbage can lids (when banged together like cymbals) aren't.property of business partnership exemption Protects business partnership property. Virtually all states allow this exemption if the property has the following characteristics: Each partner has a right to possess the property for partnership purposes, but has no right to possess it for any other purpose without consent of the partners. At a partner's death, his share of the partnership property passes to the surviving partners. The property isn't subject to state non-partnership property laws such as dower, curtesy, spouse's share or intestate succession.tools of the trade exemption Protects items of property needed to perform a line of work. For a mechanic, plumber or carpenter, tools of trade are the implements used to repair, build and install. For a doctor, tools of trade are the items found in the doctor's office and bag. For a clergy person, tools of trade often consist of no more than books. Traditionally, the exemption was limited to items that could be held in the hand. But most states now embrace a broader definition and a debtor may be able to fit many items under a tools of trade exemption. A motor vehicle is rarely considered a tool of the trade, unless it is a necessary part of the job--as it would be for a traveling sales representative--not merely used for commuting.wild card exemption Protects any property you choose, though it's not available in all states. Some states that include this exemption limit it to personal property; while others include real estate as well. Some states offer it only in lieu of homestead (or burial) exemption. In nearly all states that offer it, you can apply the exemption to nonexempt property, such as expensive jewelry or clothes, or use it to increase the amount for an already partially exempt item. For example, if Fergie's state has no specific motor vehicle exemption but does have a wild card exemption, Fergie can use the wild card exemption to put toward her car. If the state has a specific motor vehicle exemption, but the amount is limited, Fergie can use the wild card exemption to increase the exempt amount.

CRUELTY

Any act of inflicting unnecessary emotional or physical pain. Cruelty or mental cruelty is the most frequently used fault ground for divorce because as a practi... (more...)
Any act of inflicting unnecessary emotional or physical pain. Cruelty or mental cruelty is the most frequently used fault ground for divorce because as a practical matter, courts will accept minor wrongs or disagreements as sufficient evidence of cruelty to justify the divorce.

RESPONDENT

A term used instead of defendant or appellee in some states -- especially for divorce and other family law cases -- to identify the party who is sued and must r... (more...)
A term used instead of defendant or appellee in some states -- especially for divorce and other family law cases -- to identify the party who is sued and must respond to the petitioner's complaint.

MINOR

In most states, any person under 18 years of age. All minors must be under the care of a competent adult (parent or guardian) unless they are 'emancipated'--in ... (more...)
In most states, any person under 18 years of age. All minors must be under the care of a competent adult (parent or guardian) unless they are 'emancipated'--in the military, married or living independently with court permission. Property left to a minor must be handled by an adult until the minor becomes an adult under the laws of the state where he or she lives.

SAMPLE LEGAL CASES

In re Sophia GL

... Judge Love did not respond. On September 13, 2006, Andrew filed a contest to registration of the Indiana child custody determination. ... It's anticipated under the Uniform Child Custody Jurisdiction Act that Judges are supposed to talk to one another. ...

In re Custody of MCC

... 518, 544 NE2d 1293. It is clear, however, that physical custody is not determined based on physical possession of the child at time the custody petition is filed. ... 690, 491 NE2d 1150 (1986) (standing "should not turn on" who had the child when the custody petition was filed). ...

Smith v. Freeman

... 1072 In Sorenson, a petition for dissolution of marriage was at issue, including child custody. ... 640, 487 NE2d 84. Moreover, since the circuit court retains jurisdiction during the child's minority, this serves as an added protection in child custody cases. ...

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