When couples with significant assets divorce, dividing property becomes more complex than just splitting a bank account. High net worth divorces in Maryland frequently encompass businesses, real estate, investment portfolios, retirement funds, and stock options. These assets require careful evaluation and strategic legal handling, as the outcome can impact your financial future for years.
This article explains how courts in Maryland handle property division in high asset divorces, what types of assets are involved, how valuation works, and why hiring an experienced divorce attorney in Howard County, MD, or elsewhere in Maryland is essential to protecting your financial interests.
How Maryland Divides Property: Equitable Distribution
Maryland uses equitable distribution to divide marital property. This indicates that the court distributes assets in a fair manner, though not always equally, taking into account different factors. Unlike community property states that divide assets equally, judges in Maryland evaluate what is fair, considering the specific circumstances involved.
Factors to consider include each spouse’s financial and non-financial contributions to the marriage, their economic circumstances, and the time and manner in which the property was obtained. For instance, if the court considers it fair, one spouse might be awarded 60% of the marital assets.
What is Considered Marital Property?
Only property classified as marital is subject to division. This includes assets obtained throughout the marriage, irrespective of the name registered on the title.
In high net worth divorces, common marital assets include primary residences, vacation homes, investment properties, business interests, retirement accounts, stock portfolios, vehicles, and valuable collections.
Non-marital property encompasses assets owned before the marriage and specific gifts and inheritances. However, if a non-marital asset appreciates due to the efforts of either spouse, that increase may be treated as marital property.
Division of Complex Assets
Business Appraisal
If you are a business owner, assessing its worth will need to be a part of your divorce process. This involves reviewing financial statements, assessing goodwill, market conditions, and expected future income. Courts often rely on forensic accountants or business appraisers to confirm the accuracy of financial information.
To avoid liquidating a business, courts may award it to one spouse and compensate the other with a monetary award or through other assets.
Retirement Accounts and Pensions
Retirement plans, including 401(k)s and pensions, are frequently neglected yet can represent some of the most significant assets a couple shares during the marriage. Maryland law dictates that the benefits accumulated during the marriage are equitably allocated.
A Qualified Domestic Relations Order (QDRO) is required to divide these accounts penalty-free. Given their complexity, it’s wise to consult a financial advisor and a divorce attorney in Howard County, MD.
Investment Portfolios and Stock Options
Stocks, bonds, and stock options acquired during the marriage are considered marital property. Valuing them requires current market data and, for unvested stock options, projections about future value. Courts must ascertain the portion acquired during the marriage and decide on its division.
Real Estate Holdings
Wealthy couples frequently possess several properties, each needing to be appraised. Courts consider mortgage debt, appreciation during the marriage, and each spouse’s contributions to upkeep or improvements.
Considerations of Maryland Courts
In Maryland, judges consider multiple factors when determining the division of marital property. These include:
- Each party’s monetary and non-monetary contributions.
- The value of each spouse’s property.
- Economic circumstances at the time of division.
- The marriage length.
- Each party’s health and age.
- How and when the property was acquired.
- Contributions to the education or career of the other.
- Any alimony awarded.
Non-financial contributions matter. A spouse who managed the home or supported the other’s career has made significant contributions that courts recognize.
The Role of Financial Professionals
In high asset cases, forensic accountants and appraisers often play a necessary role. These professionals help trace assets, uncover hidden income, and accurately value property such as businesses or collectibles. Their input establishes fair division and protects against undervaluation.
Without professional analysis, one spouse may unknowingly receive less than their fair share.
Protecting Your Financial Interests
If you’re preparing for a high net worth divorce in Maryland, take steps early to protect your future:
- Collect detailed financial records: tax returns, account statements, property deeds, and business documents.
- Engage a forensic accountant if you believe concealed assets or intricate valuations are involved.
- Work with a seasoned divorce attorney in Howard County, MD, who understands the complexities of high-asset divorces.
Preparation helps you approach property division with confidence and secure a fair outcome.
Why Legal Representation Matters
While some divorces can be handled with minimal legal assistance, high-net-worth divorces require experienced representation. Complex assets, high financial stakes, and potential disputes make professional legal guidance essential.
A knowledgeable divorce attorney in Howard County, MD can help identify marital property, coordinate valuations, negotiate settlements, and litigate when necessary. They can also protect your privacy and work closely with financial specialists to support your case.
Work with a Top High Asset Divorce Attorney in Howard County, MD
Dividing property in a high net worth divorce is not just about fairness. It’s about protecting your future. The decisions you make today will profoundly influence your lifestyle, retirement, and overall financial well-being in the future.
At Milstein Siegel, our experienced Maryland family law attorneys have spent over 30 years helping clients maneuver complex divorces involving significant assets. We work with financial professionals, conduct detailed asset reviews, and advocate aggressively to protect our clients’ interests.
If you need trusted guidance for a high-asset divorce, contact Milstein Siegel online or call (443) 230-4674 to schedule a consultation. Allow our expertise to protect what is most important to you.