Division of Property

The Importance of Making Sure the Maryland Marital Settlement Agreement You Sign is the Marital Settlement Agreement You Want

January 29, 2021 | by Anthony A. Fatemi, LLC

A comedic TV commercial series features disgruntled car buyers hiding their identities behind masks and disguises. They are mortified because they found out, only after they made their purchase, that they ended up “paying too much” for their used car. There’s a little bit of a legal lesson in this, which is: be absolutely certain before you sign a contract on the bottom line because, once you do, it is generally very difficult to avoid the promises you made in that document. That’s true of a marital settlement agreement, as well, which is why you definitely should consult an experienced Maryland divorce attorney before signing one of those documents.

K.J. was a spouse whose divorce case was a clear example of “post-execution regret.” In 2011, with his marriage broken down, he signed a marital settlement agreement with his wife. One of the terms in that contract, “Paragraph 20,” stated that the husband would pay the wife 1/3 of any settlement or judgment he received from a personal injury lawsuit that was pending at the time of the divorce.

The injury case in question was not your ordinary case, though. It was a lawsuit arising from injuries the husband suffered in the Beirut barracks bombings of 1983, the defendant was the government of Iran, and the claim for damages was extremely large.

How the Maryland Court of Appeals’ Ruling in a Lead Paint Case May Have a Big Impact on Your Divorce Litigation

January 15, 2021 | by Anthony A. Fatemi, LLC

Most contested divorces are fact-intensive. They revolve around who did or didn’t do something, when a spouse purchased an asset (and what assets were used to make that purchase,) the amount of money a spouse did or did not earn, and so forth. However, issues of law can also impact your divorce case, and a substantial change in the law can significantly influence how your divorce case is litigated. That’s one of the many places where having an experienced and diligent Maryland divorce attorney can benefit you, as your legal advocate will be up on the new laws and what you’ll need to succeed.

One of the bigger changes in Maryland law in 2020 was not something specific to divorce law. Maryland’s highest court, in a ruling related to a personal injury case about lead paint exposure, announced that Maryland was adopting a new standard for deciding whether or not expert testimony is admissible. That standard, called the Daubert standard (based upon the 1993 U.S. Supreme Court case of Daubert v. Merrell Dow Pharmaceuticals) lays out several criteria a judge should use to decide whether an expert’s evidence should be admitted or excluded.

At this point, you may find yourself thinking, what does this have to do with my divorce case? Aren’t experts usually just a part of criminal cases, malpractice cases and personal injury lawsuits?

Dealing Marital Homes and the Outstanding Mortgages on Them in Maryland Divorce Cases

December 24, 2020 | by Anthony A. Fatemi, LLC

In a divorce where there are no minor children, possibly the biggest single thing that you’ll need to address is the marital home. One spouse may desire to stay in the home, but that can be challenging if the home isn’t paid off. Certainly, you don’t want to be liable for a mortgage loan securing a home that the court distributed to your ex-spouse. These things point out an important fact: in a divorce, it’s not just getting the assets you deserve, it also about escaping liabilities that you shouldn’t have. When it comes to doing these things, a skilled Maryland divorce attorney can help you protect yourself.

The courts, as we can see in a recent divorce case from Howard County, have substantial discretion in customizing an order dividing up a divorcing couple’s property and debts. The judge is free to award the marital home to one spouse but also to command that spouse, if the house is not paid off, to refinance or otherwise remove the other spouse’s name from the mortgage loan on the property.

So, what happens if s/he gets the house but then doesn’t refinance it? Typically, the court will, within its order, provide specific instructions about the refinancing. The order will give her a deadline by which s/he has to get your name off the loan, and will state what happens if s/he doesn’t act or doesn’t get the task completed by the deadline.

What Can I Do If My Spouse Hid Assets During Our Maryland Divorce Proceeding, But I Only Found Out After the Divorce Became Final?

December 11, 2020 | by Anthony A. Fatemi, LLC

Finding out well after you’re divorced that your ex-spouse hid substantial marital wealth and assets during the divorce process is undeniably frustrating and infuriating. It is, however, also potentially the basis for legal action. Depending on the details of your divorce (such as whether you created a marital settlement agreement) and the kind of financial malfeasance in which your ex-spouse engaged, you may possibly be able to reopen your divorce or, alternately, you may be able to seek recovery based upon your spouse’s breach of your marital settlement agreement. To learn more about your options, speak to an experienced Maryland divorce attorney right away.

A recent case from Baltimore County offers a view into what a spouse can sometimes do in that kind of situation. In this case, the CEO of a candy equipment supplier and his wife divorced in 2006. A dozen years later, the wife asked the judge to vacate that 2006 divorce judgment.

The husband, according to the wife, had engaged in fraud, concealing certain marital assets during the negotiation of the couple’s property settlement agreement. That fraud, according to the wife, had the effect of altering those negotiations and the outcome of the agreement.

Appraisals, Commissions and More: Contesting the Terms of a Court-Ordered Sale of a Marital Home in a Maryland Divorce

April 17, 2019 | by Anthony A. Fatemi, LLC

One goal for divorce is to create closure and free up both spouses to move on with their separate lives. Sometimes, that means certain things financially like selling the marital home. If you think that the proposed sale is improper, whether because the sale price is too low, the broker commission is too high or something else, you have certain legal options you can take. However, it is important to be forewarned: simply because you file the proper paperwork objecting to the proposed sale, that does not automatically mean that the trial judge must hold a hearing before ruling on your objection, as one husband learned recently.

Whether you are the spouse supporting a proposed sale of the marital home or opposing it, it pays to have an experienced Maryland family law attorney on your side.

Y.A. and N.A. were couple going through a divorce where selling the marital home was an issue. The judge handling their divorce case ordered the couple to split everything related to the sale 50-50. Each spouse would pay half the costs and fees of the sale, and each spouse would receive half the proceeds after the sale was finished.

My Spouse Drained Our Bank Account a Week Before the Divorce Filing and Blew the Money at the Casino. What Can I Do?

March 15, 2019 | by Anthony A. Fatemi, LLC

Many of us are likely familiar with the stereotype: a marriage is irretrievably in breakdown and one spouse, sensing the end, decides to go out, drain the marital accounts and either blow that money or else hide it. This is something called “dissipation of assets” and it is potentially very harmful to the spouse on the other end. When that happens, you need to know how to respond, which is one reason (among many) why you need experienced Maryland family law counsel on your side as you prepare for, and then go through, the divorce process.

Dissipation of assets is defined as “where one spouse uses marital property for his or her own benefit for a purpose unrelated to the marriage at a time where the marriage is undergoing an irreconcilable breakdown.” So, if one spouse depletes marital assets during the marriage’s final decline (or during the divorce action) and uses those proceeds on things that benefit only him/her individually and not the marital unit, then that is dissipation.

In a case where your spouse has squandered, or absconded with, marital funds, there is a multi-step process in court that must take place. First, you must give the court enough evidence for the judge to find that you’ve established the basic elements of dissipation as defined by Maryland law. (This is called establishing a “prima facie case.”) Once you’ve demonstrated that to the court, then the burden shifts to your spouse, who must show that he/she didn’t dissipate the funds but spent them on a legitimate marital purpose. (For example, if you withdrew substantial sums from the marital checking account but did so to pay the mortgage payment on the marital home and the rent on your one-bedroom apartment after your spouse asked you to move out, then those expenses are valid and are not dissipation.)

Dividing a Business in a Maryland Divorce When the Business is Marital Property

February 27, 2019 | by Anthony A. Fatemi, LLC

In cases of divorce where businesses are among the spouses’ marital property, the issues can be very intricate. A value must be established for the business (just as it must be for every other marital asset), and this often requires the services of an accounting and business valuation expert. In order to achieve your fullest and fairest outcome in your divorce, it may often be worth your while to retain your own expert witness to perform a valuation of the business. Whether it is expert witness evidence, document evidence or testimony, when it comes to amassing and presenting the evidence you need for a fair result in your divorce case, be sure to reach out to a knowledgeable Maryland family law attorney.

L.H. and K.K.’s divorce was a case that centered around asset division and a business as a marital asset. The pair married in the fall of 1997. They separated 15 years later and their divorce became final in 2016. With regard to the division of assets, the court concluded that a tree service company owned by the wife was a marital asset. The court ordered that the wife keep the business, but that the husband should receive a monetary award for his portion of the marital asset.

In order to make an equitable division and set a proper amount for the award to the husband, the court needed to know the business’s worth. The husband retained an expert to assess the value of the business. (The wife hired an accountant to serve as her expert, as well.)

When Does an Idea Become an Asset and When Does an Asset Become Subject to Marital Property Division in Maryland?

August 15, 2018 | by Anthony A. Fatemi, LLC

Back in the 1990s, a famous politician once responded to a question under oath by noting that “it depends on what the meaning of ‘is’ is.” While that answer might be puzzling to some, the reality is that, in the law, sometimes outcomes hinge upon small phrases or even single words, and the very precise definition of those terms. The outcome of a Florida case not too long ago hinged upon what the definition of a “sale” was. Recently, here in Maryland, the outcome of one ex-wife’s case alleging her ex-husband violated the couple’s marital settlement agreement rested squarely upon two things: whether a thing qualified as an “asset” and whether that asset had an established, non-speculative value. All of these very nuanced details had the potential to have major consequences, and they highlight why it is so important to have skilled Maryland divorce counsel on your side.The couple, R.G. and S.G., began divorce proceedings in 2012 after 25 years of marriage. Seven months after the wife filed her divorce petition, the husband had a dream. That dream was the origin of a groundbreaking invention – a flossing toothbrush. The husband consulted one of his former patients, a businessman, about the invention, but he did not consult a patent attorney right away. Allegedly, the husband was trying to avoid leaving a “trail” that could provide the wife with an opportunity to claim the invention as a marital asset.

The couple entered into a mediated marital settlement agreement on Nov. 18, 2013. Sixteen days later, the husband contacted a patent attorney. In late January 2014, the divorce became final. A week later, the husband filed a provisional patent application for his toothbrush invention. The following November, the wife brought the husband back into court, asserting that he violated the settlement agreement when he failed to disclose the idea for the invention. Specifically, the wife alleged that the husband violated the “Disclosure” paragraph, which required that each spouse disclose all of the assets in the litigation. An improper non-disclosure, according to the agreement, meant that the injured spouse would receive 50% of the value of the undisclosed asset.

The question in this case was, what is an asset? When does a thing become an asset, and even if it was an asset, was the husband’s non-disclosure a violation of the agreement? The husband argued that the idea for the invention was not an asset and had no value as of the date that the spouses signed the settlement agreement.

But Who Gets the JPGs? Dealing with the Distribution of Digital Assets in a Maryland Divorce

July 27, 2018 | by Anthony A. Fatemi, LLC

With modern technology comes modern problems. That can be true in divorce as in other legal areas. One aspect of this is the very contemporary issue of electronic/digital assets. Digital assets can be complicated, as one person’s electronic files may be housed on a computer, hard drive or other storage device that belongs to another. Because these digital files may be things like emails, photos or videos with high sentimental value, those that are potentially embarrassing or harmful, or digital documents with important personal or financial information, resolving the distribution of these assets in a divorce is very important. To make sure that all of your assets, both electronic and physical, are distributed properly, be sure you have an experienced Maryland family law attorney on your side.

A recent case from Anne Arundel County was an example of this type of dispute. In the divorce, the husband agreed that he would return all of the wife’s computer files. This included the email archives from several email accounts.

The husband did not return all the files, however. The wife went back to court, this time seeking an order declaring the husband in contempt for his failure to deliver the files. The husband declared that he had deleted many of the files “in a fit of rage” a year before the spouses established the agreement for delivery of the emails. The wife then asked to review the husband’s hard drives. He asserted that the hard drives were damaged in his move out of the marital home and that he had thrown them away.

The Circumstances and Standards Under Which One Spouse Can Receive a Monetary Payment as Part of a Divorce in Maryland

April 13, 2018 | by Anthony A. Fatemi, LLC

Distributing marital property can be one of the most complex elements of any divorce, especially one in which minor children are not involved. Sometimes, in order to achieve a genuinely equitable outcome, it may be necessary for a trial judge to order one spouse to make a monetary payment to the other. There are certain rules that govern monetary awards, though, and if they are not followed, the spouse ordered to pay may be entitled to get the order thrown out. All of these concepts and litigation strategies highlight how having an experienced Maryland property division attorney can provide a substantial benefit to you in your divorce case.

The divorce of Samuel and Joyce, a couple who separated after nearly 30 years of marriage, was an example of a monetary award case that ended in a successful appeal. In dividing the couple’s assets, the court concluded that, with all of the assets distributed, the husband owed the wife a monetary award of $54,000. A monetary award is something that may be ordered in some Maryland divorce cases when the distribution of assets between the spouses yields an outcome that is not entirely equitable. Requiring one spouse to pay the other a certain sum of money thereby “evens the scales” and achieves the equitable outcome required by the law.

In order to order a monetary award, the trial judge has to do several things and consider several factors. Maryland has created a three-step process to be used to determine if a monetary award is appropriate. First, the judge must divide assets into the categories of marital and non-marital. Second, the judge must assess the value of all of the assets that are determined to be marital. Third, the court must decide if dividing the assets “according to title” would be unfair to one spouse.