Stuart C. Axilbund, Attorney at LawTowson MD Divorce Lawyer | Baltimore County Family Law Attorney | Owings Mills Separation Law Firm2024-03-12T13:22:48Zhttps://www.axilbundlaw.com/feed/atom/WordPress/wp-content/uploads/sites/1401610/2020/01/cropped-Fav-icon-new-min-32x32.jpgOn Behalf of Stuart C. Axilbund, Attorney at Lawhttps://www.axilbundlaw.com/?p=482552024-03-12T13:22:48Z2024-03-12T13:22:48ZNavigating a high-asset divorce process is rarely a straightforward endeavor. Unless a couple has a viable prenup or postnup in place that settles virtually all property division concerns, any high-asset divorce process is likely going to get fairly messy at one point or another.
As a result of this potentially stressful reality, setting clear priorities is important. If you and your spouse have decided to go your separate ways, know that setting informed priorities early in the process can help you to protect your interests and better ensure a fair settlement.
The potential financial benefits of making this effort
High-asset divorces often involve intricate financial portfolios, including business ownerships, investments, real estate holdings and valuable personal property, so dividing assets can become an overwhelming task. This process unfolds simultaneously with the need to engage in broader financial planning for their post-divorce realities. By setting clear priorities, you can approach your divorce with greater clarity and purpose, minimizing financial losses and paving the way for a more stable future.With a clear understanding of what is most important to you, whether that is retaining ownership of a family business, securing investments or keeping a primary residence, you can more effectively negotiate (or litigate, if necessary) and make compromises where necessary. Prioritizing can allow you to focus on securing assets that hold the most value to you, financially and emotionally, while being willing to concede less important assets to reach a fair settlement efficiently and effectively.
Streamlining the process
Divorces, often especially those involving substantial assets, can become contentious, prolonging the process and increasing legal costs. Identifying and communicating your priorities early on can help mitigate conflicts by establishing clear objectives and boundaries for negotiations. When both parties understand what the other values most, it can potentially lead to more productive discussions and a willingness to compromise, potentially reducing the time and expense involved in reaching a settlement.Regardless of whether your interests are best served by negotiation, mediation or litigation, by approaching your divorce with clear priorities, you can more effectively safeguard your interests and lay the groundwork for a more secure and fulfilling future.]]>On Behalf of Stuart C. Axilbund, Attorney at Lawhttps://www.axilbundlaw.com/?p=482262024-02-26T12:52:09Z2023-12-13T14:31:08ZThe marital home
The value of real property changes drastically from year to year. Couples sometimes assume they know what the home is worth because they know what they paid for the property. However, the longer it has been since they acquired their home, the greater the chances that the sale price is not an accurate reflection of the current fair market value for the home. People may need to bring in a real estate professional to look at the property and establish what it is likely currently worth.
A marital business or professional practice
A business often requires major investments during a marriage, as one spouse may give up their earning potential and spend hours of their time trying to establish a new business. Not only does a business typically have resources that are worth money, but they also represent a source of future income for divorcing spouses. There are many different ways to value a business, and spouses may have a hard time agreeing on the right valuation approach and final value for the business.
Invested resources or deferred compensation
Couples may buy stocks and other investments together with the intention of retaining those resources for years or even decades. They may then need to divide those investments during a divorce. Even if specific stock holdings do have a set value, it can be difficult to address investments in a divorce when people expect those resources to appreciate substantially in the future. Especially if there are future investment opportunities granted as part of someone's employment compensation, such as restricted stock options, there may not be a clear value to apply toward investment holdings and deferred income.
Spouses generally need to agree with one another about what their property is worth before they can agree on how to share those resources with one another as they separate their lives. Seeking legal guidance when handling contentious matters during the Maryland divorce may help people obtain the best outcome while incurring minimal stress.]]>On Behalf of Stuart C. Axilbund, Attorney at Lawhttps://www.axilbundlaw.com/?p=482242024-02-26T12:52:15Z2023-09-28T13:58:53ZWhat’s the primary distinction?
Separate property, also known as non-marital property, are the assets considered the sole property of one spouse. For instance, any property acquired by either spouse before the marriage is generally categorized as separate property. This can encompass real estate, vehicles, bank accounts or investments held prior to the wedding day. Only the spouse who owns separate property has any claims to it during the divorce process.
In contrast to separate property, marital property is generally comprised of the pool of assets acquired during the marriage. Each spouse has claims to marital property, unless some exception applies to their circumstances. The state follows the principle of equitable distribution when dividing marital property.
What’s the equitable distribution principle?
The state’s law dictates that marital property should be distributed equitably. However, this does not necessarily mean equally. The court considers various factors, such as the duration of the marriage, each spouse’s financial contributions and their respective needs.
However, you should note that commingling can occur when separate property is mixed with marital assets. This can complicate the distinction between the two types of property. To avoid this, maintaining meticulous records is crucial. Moreover, suppose separate property appreciates in value during the marriage due to factors such as market conditions or investments. In that case, the increase may be considered marital property. This can be a contentious issue during divorce negotiations.
How courts handle property division
When a divorce case goes to court, the judge is tasked with determining a fair and just division of marital property. The court assesses each spouse’s contributions to the marriage, including financial support, homemaking and childcare. This evaluation helps in determining an equitable distribution. The judge also considers the future financial needs of each spouse, especially if one party requires support to maintain a similar standard of living post-divorce.
Alternatively, couples can reach a marital settlement agreement outside of court – perhaps via mediation and/or attorney-led negotiations – so that they can set the terms of their process without judicial intervention.
Comprehending the difference between separate and marital property is important when strategizing your approach to the divorce process. Seeking legal guidance right away can help to ensure your interests are protected as your case evolves.]]>On Behalf of Stuart C. Axilbund, Attorney at Lawhttps://www.axilbundlaw.com/?p=480782024-02-26T12:52:20Z2023-06-15T18:53:49Z5 steps to take to set some boundaries
Exactly what you need to do right now can vary according to your situation, but here are some actions you should definitely consider:
Limit social media use: Be cautious about what you post on social media platforms during the divorce process. Avoid discussing your case, emotions or any personal details that could be used against you in the property division process or when it comes to matters of child custody or support. Adjust your privacy settings to restrict access to your profiles, and consider temporarily deactivating your accounts.
Secure your electronic devices: Use strong, unique passwords for all your devices, including smartphones, tablets and computers. Enable two-factor authentication whenever possible and encryption programs to protect sensitive documents.
Change passwords and update security measures: Change the passwords for all your online accounts, including email, banking, social media and cloud storage. Use strong passwords that include a mix of letters, numbers and special characters. Enable two-factor authentication to add an extra layer of security.
Protect your email communications: Use encrypted email services and secure messaging apps to communicate with your attorney or other individuals involved in the divorce proceedings. It may be wise to open a new email account that your spouse doesn’t know about.
Consider a post office box or alternative mailing address: You may want to set up a P.O. box or arrange to have your mail sent to the house of a trusted friend or relative. That may be particularly wise if you have communications coming that you don’t want your spouse to see, whether that’s your new banking information or personal correspondence.
Remember that privacy protection is crucial, but it's equally important to comply with legal obligations and court orders about disclosure during the divorce process. Seeking legal guidance can help you to learn more.]]>On Behalf of Stuart C. Axilbund, Attorney at Lawhttps://www.axilbundlaw.com/?p=480752024-02-26T12:52:25Z2023-03-21T13:58:05ZNot having a financial plan at all
Even if you’ve never done it before, this is the right time to put a budget down on paper – and stick to it. The worst thing you can do right now is losing track of your spending. The temptation to quickly replace comfort items that you have to give up to your spouse or engage in a little retail therapy can be very strong during this emotional time.
Ignoring the tax consequences of your decisions
Thinking of cashing in some investments to get through the divorce? That could be disastrous when it comes to tax time. Do you need to divide up the 401ks? Without understanding the tax implications, you could end up with less than you expect – or a big tax bill. If spousal support is an issue, you need to understand how the taxes will affect what you can afford to pay (or expect to receive).
Fighting for the house when you can’t afford it
Sure, the house may be the biggest asset you own – but it is also a huge expense that you’ll have to handle all on your own after the divorce. Before you even contemplate trying to fight for the house in the divorce, make sure that you can afford the taxes, insurance and upkeep without your spouse’s income. It may be much wiser to sell and split the proceeds.
Legal guidance can help you steer clear of common divorce pitfalls, including the ones that can leave you feeling like your pockets have been pinched beyond all recognition.]]>On Behalf of Stuart C. Axilbund, Attorney at Lawhttps://www.axilbundlaw.com/?p=480172024-02-26T12:52:30Z2022-12-16T03:56:51Zwill separate while they go through a divorce. This date of separation can be incredibly important when looking at how to divide marital property.
What happens to items purchased after you separate?
The date is so important because items that you purchased after you separated may not qualify as marital assets that are owned by both of you. This can impact how you divide them.
For example, maybe you and your partner used to share one car. Now that you both have separate living spaces, you purchased your own car so that you can get to work. You and your spouse are technically still married, but this is clearly not an asset that you are buying together or that needs to be divided between the two of you. Only your name is on the title and the loan.
One tricky area can be when people will separate and then take items with them to their new home. Many of these items were purchased during the marriage and may still need to be addressed during property division. That’s why it’s so important to have proof of when the two of you separated and when you purchased items that you may consider to be your own. Official documents, such as the car’s title, can also be helpful.
What if there is a conflict?
As you can imagine, couples don’t always agree on which assets are separate assets, which ones are marital assets and how they need to be split up. That’s when they end up in court, where the court will assist them with property division under the state laws. If you find yourself in this position, it’s incredibly important that you understand all of the legal options at your disposal.
]]>On Behalf of Stuart C. Axilbund, Attorney at Lawhttps://www.axilbundlaw.com/?p=480152024-02-26T12:52:35Z2022-09-13T20:19:04ZMaryland is not a community property state
Some states seek to divide marital property relatively evenly by treating it as community property that each spouse owns equally. Maryland does not have a community property statute on the books, so judges presiding over divorce proceedings must use the equitable distribution standard instead.
They need to think carefully about the family's circumstances and then make property division choices based on those specific details. Your second home or investment real estate holdings could be subject to an order to sell them, or they might end up allocated to one spouse or the other. You will typically need an appraisal to determine the current fair market value of the property, as knowing the current value is important to asking for fair compensation.
You may be able to negotiate an arrangement with your spouse. If you have a particular emotional attachment to one property, then your ex may meet you halfway by letting you keep it in exchange for giving up your interest in other assets. It is only if you are unable to resolve your property division matters between the two of you that you will have to worry about litigation and a judge making those decisions for your family.
Could the cabin be your separate property?
There are a handful of situations in which real property may not be subject to division in a Maryland divorce. These include when the property was an inheritance received by one spouse or an asset owned outright prior to the marriage. If you purchase the property during your marriage or invested marital income in it, then at least a portion of its value is likely subject to division.
Learning more about property division rules in Maryland can help you start planning for your upcoming high-asset divorce.]]>On Behalf of Stuart C. Axilbund, Attorney at Lawhttps://www.axilbundlaw.com/?p=480142024-02-26T12:52:40Z2022-06-20T18:52:13Zhiding assets is against the rules. If you hide assets intentionally and the judge finds out, then you may end up facing serious consequences. That’s why disclosing what you have matters so much.
Forgotten assets aren’t the same as hidden assets, but your future ex-spouse might claim that not disclosing them was intentional. That could get you in trouble.
How do you make sure you disclose everything you can?
One of the things to do is to talk to a forensic accountant. This accountant will look for investments and assets of all kinds, helping track down items you own but may have forgotten about.
The nice thing about working with a forensic accountant is that they won’t necessarily just be focusing on you. They’ll also look into your spouse’s accounts and property, making sure you both have as much information about the assets you own as possible.
It’s possible that you and your spouse could both hire your own forensic accountants. If that’s the case, it’s valuable to compare their findings with the disclosures you’ve both made. That way, you’ll be able to see as many assets as possible for the purposes of dividing them.
What if your spouse finds out about missed assets later?
Even if you didn’t intentionally withhold information about that asset, they may still have a claim to it. It is helpful to do as much research into your assets as you can now, so you can minimize the risk of this happening.
If your spouse pushes the issue, they could end up taking you to court and asking for a share of, or all of, the asset that you did not disclose. That’s something that you don’t want to have happen and an issue you can discuss with your attorney to prevent it from occurring.]]>On Behalf of Stuart C. Axilbund, Attorney at Lawhttps://www.axilbundlaw.com/?p=480102024-02-26T12:52:44Z2022-03-24T17:39:27Zbest interests of the children. Psychological research indicates that, in general, strong bonds with both parents are important for social and emotional development.
There are only a limited number of circumstances in which the Maryland family courts will consider granting one parent sole custody in a contested family law matter.
When is sole custody possible?
Sometimes, one parent will agree that they can't fulfill the duties of parenting without constant support. Your ex might agree with you that you having sole custody would be the best outcome for the children. However, if they don't agree with you, then you will have to go to court.
Judges will only consider awarding sole custody if there is a compelling concern about shared custody. A documented history of domestic violence could convince a judge to reconsider shared custody as the standard expectation in your case. Sometimes, severe medical issues or a history of drug addiction or alcohol abuse could convince a judge that one parent can't meet the needs of the children.
Documentation is crucial when seeking sole custody
Verbal claims of abuse or addiction from one spouse will not be enough to have any impact on the proceedings for most families. Medical records showing treatment for addiction issues or even social media posts boasting about their unhealthy level of consumption could help bolster your case.
If you don't have some kind of evidence to support your claim to sole custody, trying to limit the time your ex has with the children could potentially backfire. If they accuse you of parental alienation and the courts agree, they might view you as failing to act in the best interests of the children. Judges prefer to see parents cooperating and committing to co-parenting rather than fighting.
Of course, if you believe your children will not be safe with the other parent, then seeking sole custody might be the best thing to do. Learning more about child custody proceedings in Maryland will help you prepare for your time in court.]]>On Behalf of Stuart C. Axilbund, Attorney at Lawhttps://www.axilbundlaw.com/?p=480092024-02-26T12:52:49Z2021-12-16T23:45:24ZUsing a Qualified Domestic Relations Order
There is good news, and it is that you may be able to claim some of the pension, when your former spouse eventually begins to collect it. You can do this as part of the property division process, even though they don't have that money in hand yet. You simply set up an agreement that states that, when they do start getting the monthly payments, you will get a portion of those payments.
This legal agreement is called a Qualified Domestic Relations Order, or a QDRO. Exactly how much money you're going to get with the use of the QDRO depends on a lot of different factors, such as the total value of the pension, how long your spouse has worked there, whether or not you have a prenuptial agreement and the length of your marriage – just to name a few.
That said, after it gets set up, the Qualified Domestic Relations Order guarantees that you're going to get your portion of the pension when your former spouse retires. You may need to go through and consider exactly how this will allow you to retire, as you're not going to get 100% of the pension and you may have fewer assets than you planned on while you were married, but you're also not going to be left with nothing simply because your spouse decided to ask for a divorce later in life.
As you can imagine, it's very important to explore all of your legal options and to know exactly how to get things set up. Your future and your retirement both hang in the balance, so be sure you know what steps to take.]]>