Severna Park Divorce Attorneys

Divorce Attorney Protecting Financial Interests in Severna Park, MD

Getting a divorce can be a complex process. The financial issues that a couple will need to address when separating can be hard to fully comprehend, and the emotional concerns they may face due to the breakdown of their marriage can make these matters even more difficult. Concerns related to child custody and visitation can make the process even more difficult. Legal help from a skilled attorney can ensure that a person will have an advocate on their side who can address legal and financial concerns and work to resolve a case as efficiently as possible.

At Silverman Thompson, we provide the representation our clients need as they take steps to legally dissolve their marriages. We can provide guidance on the financial matters that will need to be addressed, and we can work to negotiate favorable settlements. We can also help parents put workable arrangements in place that will provide for their children's best interests going forward. We can assist with the resolution of divorce-related disputes, and if necessary, we can provide representation when litigating these matters in family court.

Division of Marital Property

Many of the most significant issues to address during a divorce will be related to the identification, valuation, and division of marital property. Spouses are required to divide their marital property equitably. The considerations of what is fair and equitable will be based on a couple's financial circumstances, the income and resources available to each party, and each spouse's contributions to the marriage, including the income they have earned and the homemaking and childcare services they have provided.

The marital estate can include a wide range of assets. In many cases, a couple's family home will be one of their most significant assets. It will not only have monetary value, but it may also have sentimental value for both parties. A couple will need to decide whether to sell the home and divide the proceeds, whether one spouse will assume sole ownership, or whether the sale may be deferred until a later date, such as after their children have graduated from high school.

Bank accounts and other financial accounts in the name of either spouse are likely to be considered marital property, as long as the funds in these accounts were accumulated during the marriage. Along with the funds in these accounts, investments such as stocks and bonds may need to be divided, and a couple may need to determine whether capital gains taxes will apply to these transfers.

Retirement accounts and other retirement benefits may also play a significant role in a property settlement. If the right steps are not taken when dividing these accounts, taxes or penalties may apply. To avoid this, a Qualified Domestic Relations Order (QDRO) may be used when transferring funds from a 401(k) account, or a transfer incident to divorce may be used with an IRA. Pension benefits that either spouse has earned may also need to be addressed. While these benefits will not begin being paid out until after a person's retirement, a QDRO may be used to allocate a certain amount or percentage of these benefits to the person's ex-spouse.

Additional assets that may need to be addressed during a divorce include vehicles, boats, artwork, jewelry, antiques, collectibles, furniture, kitchen utensils, or anything else a couple owns that they acquired during their marriage. Marital debts may also need to be addressed, and the responsibility for paying different debts may be allocated between the parties. A complete marital settlement agreement will detail all decisions about how assets and debts will be divided.

Hidden Assets and Asset Dissipation

During the divorce process, one spouse may attempt to manipulate the outcome by concealing assets, understating their income, misreporting the value of a business, or deliberately wasting or destroying marital property. Our attorneys are experienced in identifying and responding to these issues.

Hidden Assets

As part of the discovery phase of a divorce, spouses will be required to provide each other with a full and honest financial disclosure. This will report the income they earn, their assets, their regular expenses, and other relevant financial information. However, some spouses may fail to report information correctly, and they may try to conceal certain assets to avoid dividing them with the other spouse.

Common methods of hiding assets include:

• Transferring money or property to family members or other parties, with the plan to receive these assets back after the divorce is finalized
• Creating fictitious loans or liabilities in business records to try to reduce the value of a business
• Understating the income earned by a business deferring invoices, delaying contracts, or manipulating the timing of business transactions
• Paying a salary to a nonexistent employee while funnelling the funds into a secret account
• Converting marital assets into cash or other forms that may be hard to trace, such as cryptocurrency

Our lawyers know how to use discovery tools to uncover hidden assets. We may use subpoenas to obtain records from financial institutions and find hidden accounts or undisclosed transactions. We may conduct depositions and require a spouse to give testimony under oath about their financial activities. We can also work with forensic accountants to review business records and other information and find assets that have been hidden.

Asset Dissipation

In some cases, a spouse may waste, misuse, or destroy marital assets. They may act in ways that benefit themselves rather than their partner and their family, or they may act out of malice, trying to cause financial harm to their spouse. When these types of actions take place after a marriage began to break down or during a divorce, they are known as asset dissipation.

Dissipation can take many forms. A person may engage in wasteful spending, such as luxury travel or large purchases of expensive items, using marital funds only to benefit themselves. A person may spend money on an affair, such as by buying gifts or paying for hotel rooms. Money spent on a gambling or drug addiction may qualify as dissipation. In some cases, a person may purposely damage or destroy marital property or rack up large debts for the purpose of causing personal or financial problems for their spouse.

Our attorneys can take steps to show that a person's conduct qualified as asset dissipation, and we can make sure this issue will be addressed when dividing marital property. We may work to ensure that reimbursement will be paid for the lost value of dissipated assets, or we may argue that our client should receive a larger share of the marital estate to make up for dissipation that has occurred.

Contact Our Severna Park Divorce Lawyers

The financial decisions you make during your divorce can have far-reaching consequences. At Silverman Thompson, our lawyers will work to ensure that your rights are protected. We will advocate for your interests and help put solutions in place that will meet your needs both now and in the future. Contact our Severna Park, MD divorce attorneys by calling 410-385-2225 and arranging a consultation.