Articles Posted in Division of Property

The joke about lawyers and math not mixing is an old one, going back at least as far as a 1976 Saturday Night Live skit regarding President Gerald Ford and a debate question about the federal budget. In the real world, many areas of the law are quite math-intensive, not the least of which is equitable distribution in a divorce. Just like all areas of math, equitable distribution math requires not just understanding how to perform calculations, but also choosing the correct formula. In-depth knowledge of these elements can be crucial to getting a genuinely fair outcome from your divorce, which is why advice and counsel from an experienced Maryland divorce lawyer is essential to success.

A recent divorce case originating in Carroll County is a good example of this. The spouses, W.M. and T.M., married in 2014. Sometime before that, they jointly purchased a lot in Westminster where they eventually built their marital home. During the marriage, the couple purchased a vacation home in Ocean City.

4½ years into the marriage, the husband filed for divorce. At the trial’s conclusion, in addition to resolving child custody and child support issues, the court ordered the sale of both homes, with the husband receiving the proceeds of the marital residence’s sale. (The order split the proceeds of the vacation home’s sale between the spouses.)

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An old saying posits that “When it rains, it pours.” Sometimes in life, that can mean having to deal with multiple traumatic events — like your divorce and a relative’s grave illness — at the same time. Whatever the secondary emergency may be, you should take care when it comes to spending money during the pendency of your divorce case, even if it is for something as important as paying for care for a close loved one. What you can and cannot do will depend on multiple factors, like what court orders you’re under and whether the funds you seek to spend are marital or non-marital. One way to enhance your odds of avoiding troubles down the road regarding those expenses is to consult an experienced Maryland divorce lawyer before you act.

A recent divorce dispute from Anne Arundel County is a stark reminder of this notion. The husband filed for divorce in late 2019. In early January 2020, the trial judge issued an “Injunction to Prevent Dissipation of Assets.” That injunction barred the husband from “disposing of… any of the property alleged to be marital property or property acquired during the separation.”

In late 2021, the husband emptied the entire $72,800 balance of his Thrift Savings Plan and put the net proceeds (after penalties and taxes) of $56,800 into his credit union account. The husband eventually spent all of those proceeds to support his father in Nigeria, who had stage IV cancer. The couple also had a Lexus vehicle that the husband sold during the divorce for $18,600, of which the wife received $0.

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Most dog owners consider their dogs family members, not mere property like appliances, furniture, or cars. However, in Maryland, that is how the courts will address pets in a divorce case. To get an outcome that will enhance your pet’s best interests, you must understand how Maryland law sees pets and how to use the existing rules to get the result you desire. Part of that process of protecting your pets is retaining the services of a knowledgeable Maryland divorce lawyer.

Last August, we covered a change to D.C. law in which that jurisdiction declared that judges may consider the “best interests of a pet” in determining who gets an animal in a divorce. The amended law also gave judges in D.C. the option to award joint custody of a pet in a divorce judgment.

Here in Maryland, the law is substantially different. As noted above, Maryland law says that pets are personal property. That distinction means that, if you desire to get possession of your pet (or pets) in a Maryland divorce, you have to litigate the case very differently than you might in D.C. Those distinctions were on clear display in a recent divorce case from Frederick County.

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A lot of people, when they hear the phrase “equitable” in connection with a divorce case, immediately think “50-50.” That’s not necessarily true. The law actually gives trial courts broad discretion in deciding what is (or is not) equitable, whether that means distributing assets and/or debt obligations evenly or ordering something different. Given the judge’s substantial discretionary power, it is vital to have a knowledgeable Maryland divorce lawyer on your side, you that you can be confident that the judge has all the information necessary to accurately decide was is a just outcome.

As noted above, a division is not always 50-50. As an example, there’s this divorce-related case from Brookeville.

The spouses worked out a marital settlement agreement in early 2015 that said that the wife would receive the exclusive “use and possession” of the marital home for three years. After that 36-month period elapsed (or if the wife remarried earlier,) the agreement dictated that the home would be listed for sale.

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Prenuptial agreements and postnuptial agreements can be traps for the unwary. Signing an agreement with unfavorable terms can — absent a court judgment invalidating the contract — cost you greatly. (In one recent Maryland case, it cost the husband $7 million.) Before you sign, make sure you understand exactly what you’re getting into. To do that, be sure you’ve consulted with an experienced Maryland prenuptial agreement lawyer.

As another example, there’s D.R. and L.R., a late middle-aged couple who signed their prenuptial agreement in the fall of 1992. The husband’s lawyer drafted the document. The wife’s attorney counseled against signing the agreement, but the wife signed anyway.

The agreement’s terms called for neither spouse to receive alimony and that the couple would not split income or assets. It also said that “the parties expect to reside together in a location, style, and manner mutually suitable to them,” and that ownership “of any homes, residences, or other real property acquired by [husband and wife] shall be held by the parties as Tenants in Common with no rights of survivorship.”

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While divorce trials are matters where the focus falls heavily on the facts in evidence, Maryland still has numerous procedural rules that govern. A spouse’s failure to comply with them can have a very harmful impact on that spouse’s ability to litigate her case before the court. Procedural issues are one area where a skillful Maryland divorce lawyer can be greatly helpful, ensuring that you are fully compliant with all the procedural rules as well as the procedural orders the court issues.

A divorce case from Prince George’s County shows exactly how damaging procedural errors can be.

The spouses in the case married in 2013 and separated in 2019. The wife worked for the federal government, but she also had her own business that, in 2016, transitioned to focus primarily on nutritional supplements. That transition was a success and the wife’s business experienced substantial growth during the spouses’ marriage.

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In Maryland, and across the United States, we have “freedom of contract.” This means that you and another party (or parties) mostly can customize the terms of your agreements however you want without governmental interference. That freedom extends to prenuptial agreements, but it is not without limits. Certain subject matters cannot be controlled by a prenuptial agreement and clauses purporting to do so are necessarily unenforceable. Working with a knowledgeable Maryland prenuptial agreement lawyer can be invaluable in making the document you sign will accomplish the goals you desire to achieve.

Getting your prenuptial agreement “right” is crucial for multiple reasons. For one thing, courts will (due to freedom of contract) enforce most prenuptial agreement provisions as written. However, on the other hand, including an unenforceable provision may substantially damage your overall agreement.

A recent divorce case originating in Prince George’s County shows what can happen when a prenuptial agreement goes wrong. The agreement contained one paragraph that said that if the wife left, filed for separation, or filed for divorce, the husband would get full custody of the couple’s children and the wife would receive “unlimited visitation rights.” Additionally, the wife promised in the second paragraph to raise the children in the Islamic faith.

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Here in Maryland, you have multiple avenues for seeking a divorce. You can pursue a “no-fault” divorce, provided you and your spouse have been separated for at least 12 months. Alternately, Maryland law recognizes six other causes for granting an absolute divorce, each of which revolves around the other spouse’s fault. Whether you’re proceeding with a no-fault divorce or a divorce based on your spouse’s fault, a skilled Maryland divorce lawyer can help you accomplish your goals more fully.

Obviously, if you’re pursuing a “fault” divorce based on your spouse’s adultery, you’re going to need proof of his/her bad conduct. In Maryland, you don’t have to present evidence of actual coupling between your spouse and a paramour; you simply have to establish that your spouse had both the “disposition” and the “opportunity” to cheat.

However, as a recent divorce case from Howard County shows, proof of your spouse’s marital misconduct can be beneficial to your case, even if you’re proceeding with a no-fault divorce.

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One of the more painful experiences a spouse can endure is to devote years — or even decades — to a marriage only to discover that your spouse has not been as faithful to you as you’ve been to them. While heartbreaking and sometimes infuriating, your spouse’s infidelity won’t always have much of an impact on the outcome of your divorce… but sometimes it will affect that outcome in a major way. To determine your rights and options if your spouse has been cheating, you need to speak to a knowledgeable Maryland divorce lawyer.

Maryland is one of the states that recognizes both no-fault divorce and at-fault divorce. One of the grounds for absolute divorce under Maryland law is adultery. Even in a case of a divorce on the ground of adultery, that affair may not “move the needle” much in terms of the financial aspects of the court’s judgment. So, if an adulterous spouse is someone who earns only minimal income with few economic opportunities and little chance of becoming self-supporting and the “innocent” spouse has substantial wealth and income, the adulterous spouse may still be entitled to alimony and/or a monetary award, even if the infidelity was the reasons for the marriage’s breakdown.

There’s one scenario, however, where a spouse’s extramarital affair(s) can have a huge impact on those financial elements of divorce, and that circumstance was illustrated in a recent divorce case originating here in Montgomery County.

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In this blog, we’ve discussed in the past the importance of consulting a knowledgeable Maryland divorce lawyer before you sign documents like prenuptial agreements, post-nuptial agreements, and marital settlement agreements, which can alter your ownership rights in various marital and/or non-marital assets. As a recent divorce case from Prince George’s County illustrates, even if you’re not signing a prenup or a settlement agreement, the need for experienced counsel exists any time you’re signing something that purports to alter your ownership rights in one or more assets.

The spouses in the Prince George’s County case, R.T. and B.J., married in 1988 and lived in a home in Clinton. 25 years later — in early February 2013 — the husband told the wife he desired to separate and to live in his own home. A few weeks later, the husband approached the wife about buying a residence in Cheltenham that would serve as his home.

The couple decided to execute three contracts, each of which was notarized. Together, the agreements reflected the wife’s intention to relinquish all her rights to the husband’s retirement account and that the husband would relinquish all ownership rights to the residence in Clinton. The husband was not represented by counsel when he signed the documents.

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