High-Asset Divorce in Maryland

Many couples struggle over property division in divorce. When significant income, wealth and substantial assets are involved, dividing marital property can be highly complicated. When business interests or partnerships in professional associations are intertwined with marital assets, determining wealth and income requires methodical and detailed analysis. Issues surrounding potential hidden assets may need to be addressed. It is critical to work with an experienced divorce law attorney when dividing property in a high-asset divorce.

I am family law attorney Greg Abney. I founded Abney at Law, P.C., in Rockville, Maryland, as a solo practitioner because I believe that lawyers can only be effective when they work closely with each client. I provide one-on-one representation, approaching each case with meticulous attention to detail to protect the best interests of the client. You will be treated as an individual with a high level of personal service every step of the way. Call me at 301-450-0786 to set up a consultation.

What Constitutes A High-Asset Divorce

A divorce is considered high-asset when you and your spouse have a lot of assets that must be discovered and divided. It’s not just about the total value, but also about the complexity of the assets. This can include:

• Multiple properties
• Complex investments
• Business ownership
• Other valuable items of significant worth or complexity

In Maryland, the court requires a fair distribution of marital property, which means figuring out what you own, what it’s worth and how to divide it equitably. High-asset divorces often require more investigation and financial analysis to ensure everything is accounted for and valued correctly. If you have significant wealth, your divorce will likely be more involved and complicated than a typical divorce case.

Frequently Asked Questions About High Net Worth Divorce

If you and your spouse have substantial wealth and assets and are contemplating a divorce, you probably have many questions about what to expect. In my many years of practice, I regularly get asked the same questions. Below, I have compiled answers to some of those questions. For questions about your specific situation, I am available by appointment for a confidential, initial consultation.

What assets are considered valuable?

When couples have been married a long time, assets accumulate. Many things count as valuable assets in a divorce. These include:

• Real estate, like homes and rental properties
• Other property, such as cars, boats, tools, art and jewelry
• Investments, including stocks, bonds and retirement accounts
• Business income from a personal business

All of these assets, no matter how big or small, need to be identified and valued. It’s important to provide a complete picture of everything you and your spouse own so the court can make a fair decision about how to divide it.

How does a divorce affect a trust?

Wealthy families sometimes have generational wealth held in trusts, with funds distributed according to the trust’s terms. During a divorce, these trusts need to be considered as assets. How a trust is treated depends on its structure and terms. If you or your spouse is a beneficiary of a trust, the court will look at whether the trust is considered marital property. This often depends on when the trust was created and how it has been managed. Understanding the details of the trust is crucial because it can significantly impact the division of assets. I can help you navigate these complex issues to protect your interests.

Why do high-asset divorces take so long?

High-asset divorces often take longer because gathering all of the necessary information about your assets takes time. When you have many properties, investments and other valuables, each item needs to be accurately valued. This can involve:

• Appraisals
• Financial analysis
• Forensic accounting

The more complex your financial situation, the more time it takes to gather and analyze all the data. Additionally, negotiating a fair settlement can be more challenging when significant assets are involved. If you want to ensure that all your assets are properly accounted for and protected, the process can take some time.

Providing The Resources You Need In A High-Asset Divorce

High-asset cases often require the opinions of professionals who can provide expert testimony. I work with forensic accountants, business valuation professionals, real estate professionals and other experts to build a strong case to resolve asset division disputes involving:

• Business valuations
• Real estate investments
• Business and professional association interests
• Primary and secondary homes
• Investment accounts
• Pension benefits and retirement accounts
• Hidden assets

Even when the issues are not the subject of a hotly contested dispute, there are matters that require attention to detail in a high net worth divorce.

Dealing With Inheritances During Property Division

When a loved one dies, he or she might leave assets to a Rockville resident. If the heir is married but the other spouse was not mentioned by the decedent, whether the inherited assets become part of the marital estate is not automatically clear-cut. If the parties divorce, it will be necessary to make a determination regarding the inheritance during the property division part of the process.

Inheritances are generally considered to be the separate property of the spouse who received it. However, if the assets are “commingled,” all or a portion of them could no longer be considered separate property. When assets are commingled, they are either deposited into a marital account or used to pay the joint expenses of the parties. If any of the inheritance is used to make repairs or improvements to the marital home, the inheritance could become marital property.

The best way to protect an inheritance from being considered part of the marital estate is to keep it in a separate account and not use it for any marital expenses. A prenuptial agreement can identify any inheritances received prior to the marriage as separate property. Further, the parties can agree that any received during the marriage are to be considered separate property as well.

Rockville residents who are concerned about their inheritances maybe being subject to the property division phase of a divorce proceeding should take the necessary precautions to protect them. However, if the assets were never intended to be shared, it might be possible to combat that assumption in court. Whether you are trying to avoid an inheritance being commingled or fighting to prove that any commingling was unintentional, it would be beneficial to discuss the matter with me, attorney Greg Abney, to learn your options.

Handling IRAs and 401(k)s In A Divorce Settlement

On average, an individual pays $15,000 to complete the divorce process. However, this amount could be higher or lower depending on the circumstances of a given divorce. While some Maryland residents may consider using their retirement savings to help cover this expense, there may be better ways to do it. Taking a withdrawal from a 401(k) or IRA without a divorce decree may be more expensive in the long run.

A 401(k) or similar plans such as a 403(b) will be split according to the terms of a Qualified Domestic Relations Order . This makes it possible for people to roll over money from a former spouse’s plan into their own without penalty. Those who have an IRA to divide in divorce will do so pursuant to the divorce decree. An individual has up to one year to make the transfer without penalty.

If money is taken out of an IRA or 401(k) prior to a person turning 55 or 59 1/2, that withdrawal could result in income taxes owed. It could also result in a 10 percent early withdrawal penalty if it is done without a court order. Prior to the split, it is important to tally the value of such accounts. It may also be a good idea to tally the value of other financial assets such as a CD, savings account or real estate holdings.

Attention To Detail Is Critical In High-Asset Cases

When the stakes are this high, you need a divorce lawyer with experience and a solid work ethic to safeguard your rights. I do the hard work from the outset to prepare for trial. Armed with facts, I approach negotiations from a strong position. I leverage that strength in an effort to obtain a favorable settlement in negotiations to keep the emotional and financial costs at a minimum. However, when the opposing party refuses to reasonably negotiate, I am prepared to provide formidable, compelling and aggressive advocacy at trial.

Consult A Montgomery County High-Asset Divorce Lawyer

To schedule a confidential initial consultation, you can call Abney at Law, P.C., at 301-450-0786 or send me a message online.

My firm is located near the Rockville metro station, just steps from the Circuit Courthouse. My office hours for consultations are 8 a.m. to 5 p.m. weekdays. I do everything I can to keep my office overhead low, so I can pass lower attorneys’ fees onto my clients. I accept Visa, Mastercard and American Express for your convenience.