Articles Posted in Equitable Distribution

High-net-worth couples have marital troubles and often decide to divorce, just like everyone else. Unlike middle- and working-class spouses, however, high-net-worth couples face some unique issues when going through a divorce related to the volume, value, and complexity of their assets. If your divorce presents issues related to high-value assets, it is well worth your while to retain an experienced Maryland divorce lawyer.

One such high-net-worth divorcing couple is rappers Offset and Cardi B. In May, headlines revealed that the husband had amended his response to the wife’s 2024 divorce filing, asking for alimony. On the surface, that might seem surprising given that Offset is worth somewhere between $26 and $32 million. However, Cardi B is worth more than $100 million, which makes Offset’s argument look more plausible.

When you have to navigate a Maryland divorce where both of you are high-net-worth individuals, you probably will not have to deal with a catalog of hit songs and albums. Nevertheless, there are certain things that high-net-worth individuals need to keep in mind when going through a divorce.

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For many married couples, the largest single asset they possess is their marital home. When divorce arises, dealing with the marital home is often the most significant issue other than child-related matters. Even as you both navigate the divorce process, someone must pay the mortgage, property taxes, etc. Accounting for these expenses when it is time to divide assets can be crucial. To ensure you leave your marriage with a fair asset distribution, make sure you are not tackling the divorce process alone, but instead have representation from a knowledgeable Maryland divorce lawyer.

A recent divorce case from Howard County illustrates how thorny these matters can be. A husband responsible for paying the mortgage on the marital home, but did not receive something called “Crawford credits” based on those mortgage payments, took his case to the Appellate Court, but lost. Ultimately, he was unsuccessful because the law carved out several exceptions, one of which applied in his case.

To understand more fully why the court ruled against the husband, it helps to understand what Crawford credits are. These credits, which take their name from the 1982 Maryland Supreme Court case of Crawford v. Crawford, are a divorce law concept that impacts equitable distribution when a couple owns one or more pieces of real estate.

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Today, Millenials, members of “Gen Z,” and many others live much of their lives online. For some influencers and celebrities, it seems that if it did not happen on Instagram (or another social media platform,) it did not happen at all. However, the ever-presence of social media can be a problem when you are going through a divorce. The potential pitfalls are numerous and varied, but by finding and retaining a skilled Maryland divorce lawyer, you can sidestep these possible hazards that otherwise could harm your divorce case.

A recent celebrity divorce case provides a practical example. Teyana Taylor is a singer-songwriter who married Iman Shumpert, a professional basketball player, in 2016. The couple divorced in 2024. After the divorce was finalized, though, the ex-husband allegedly posted a series of documents and reports to Instagram. The Instagram information appeared to show the ex-wife getting a substantial amount in the divorce, including four pieces of real estate worth more than $10 million, a seven-figure cash sum, a $300,000 Maybach vehicle, a $70,000 Mercedes-Benz Sprinter, and a tour bus.

The “leaked” documents created a stir on social media, with many users calling the ex-wife a “gold digger.” The ex-wife fought back this month, filing a request with the court to hold the ex-husband in contempt of court. According to Taylor, Shumpert’s social media disclosure included false reports and court documents that were sealed by the judge. The ex-wife’s legal team asked the judge to impose maximum fines and a 20-day jail stint as punishment for leaking the sealed information.

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One of the most important aspects of any divorce is the division of marital assets and debts. A crucial part of that process is separating marital from non-marital. Sometimes, it is as easy as looking at how an asset or debt account is titled, but in Maryland, that is far from the only relevant factor. Given the importance of fair distribution of debts and wealth, having a knowledgeable Maryland divorce lawyer on your side can be critical to success.

According to the Federal Reserve in New York City, Americans’ collective credit card debt has cleared the $1.2 trillion mark, shattering all previous records in that area. Credit card debt can be a substantial part of married couples’ lives, making it a significant piece of the divorce puzzle when those marriages end.

Such was the case for one Upper Marlboro couple who recently came before the Appellate Court of Maryland.

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Earlier this month, news sources reported that cryptocurrency is now an asset subject to distribution in divorce… in South Korea. While your divorce likely won’t be adjudicated using the laws of South Korea, this new development half a world away is still a significant reminder that digital assets like crypto are an ever-increasing portion of married couples’ asset portfolios and, in Maryland, they are (and have been for several years) subject to equitable distribution in a divorce in this state. If you have questions about your digital assets and equitable distribution, be sure to seek out answers you can rely on by talking to an experienced Maryland divorce lawyer.

In Maryland, we have the Marital Property Act. That statute says that all marital property is subject to equitable distribution. That includes digital assets like Bitcoin, Ethereum, Tether, and other forms of crypto, but these assets present some unique challenges in a divorce. Two of the biggest are: finding it and valuing it.

Let’s tackle the latter first. Valuing crypto is inherently complicated because crypto’s value is much more volatile than other assets. Take Bitcoin, for example, which went from 62,800 to below 32,000 to 52,700 to 42,100 to 67,000… in a span of just seven months in 2021. This rapid and radical shifting can make pinpointing an accurate value of your (or your spouse’s) crypto assets particularly problematic.

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In Maryland, one of the most essential components of a divorce is the division of assets and the biggest asset most divorcing couples possess is their home. As a result, deciding whether the marital home is a marital asset, one spouse’s separate property, or a combination of the two can make a big difference in the final outcome the court reaches. When seeking a fair and just financial outcome in your divorce case, ensuring that the court has a clear and complete picture of your home – and how it is/was paid for – is vital. If you have questions about equitable distribution in a divorce, an experienced Maryland divorce lawyer can help you with knowledgeable answers about how the courts in this state make these determinations.

In 1978, the Maryland General Assembly passed the Marital Property Act. In 1982, the Maryland Supreme Court “traced the history of the act in-depth and divined the legislative intent.” In its ruling, the high court determined that, under the Marital Property Act, the correct method for determining whether an asset was marital or non-marital was to follow the “source of funds” theory, rather than using Maryland’s old “title system.”

Under the source of funds theory, marital-versus-non-marital decisions depend on “the source of the contributions as payments are made, rather than the time at which legal or equitable title to or possession of the property is obtained.” A recent divorce case from Prince George’s County is a good example of how the courts apply this theory.

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When you bring in someone as a co-owner of your business, you want someone you can trust implicitly. For many people, the most trusted people in their lives are their spouses. However, when the personal relationship goes awry, so may the business relationship. When both break down, legal action is often necessary.

P.R. and M.D. were a same-sex couple who “considered themselves married, but… were never legally married.” The women also were business partners for more than a decade and a half, sharing a home in Brandywine and a second property in Accokeek which housed their business, a daycare facility.

They separated in 2017. M.D. sued, asking the court to order a sale of the two properties and the daycare business. P.R. countersued, alleging that M.D. had engaged in “embezzlement, deceit, fraudulent conversion, and breach of fiduciary duty.” The foundation of this claim was M.D.’s allegedly moving daycare funds from business accounts to personal accounts.

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Performing complete pretrial discovery is often an essential part of divorce litigation. Your spouse’s income and earnings are likely a crucial piece of that puzzle. This discovery may be as basic as obtaining a few items documenting wages (like W-2 forms) or a complicated matter involving documentation of multiple streams of present and deferred income. An experienced Maryland divorce lawyer can be vital to getting all the information necessary to provide the court with a full and complete picture of your spouse’s wealth and assets.

The discovery dispute in the divorce of C.B. and R.B. represents a clear illustration of how counsel can help when you’re initially thwarted in your efforts to obtain essential income information.

The couple were two high-powered professionals who married in 2011 and separated in 2023. The couple had prenuptial and postnuptial agreements that resolved most – but not all — of their property issues. Specifically, the spouses disputed issues of a monetary award and division of some personal property and retirement accounts.

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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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“Yours, Mine and Ours” is a 1968 film about a very large blended family. “Yours, mine, and ours” could also refer to the analysis that must be done for equitable distribution in a divorce. Arriving at a truly equitable distribution requires accurately determining which assets are “yours,” which are “mine,” which are “ours,” and which are a combination of the above. This can be a complex and intricate process and is one where an experienced Maryland divorce lawyer can render invaluable aid toward protecting your interests.

One type of asset that can often be the center of a marital-versus-non-marital classification dispute is real property. That was the case with one Anne Arundel County couple and a million-dollar Annapolis residence that the husband inherited.

During the marriage, the couple jointly purchased investment properties in Bowie. To secure the funding needed for the purchase, the husband put up as collateral the inherited property. The couple eventually sold the Bowie properties and repaid the loans in full. To repay those loans, the couple used both proceeds from selling one of the Bowie properties and marital funds.

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