High-asset divorces can be incredibly complex, involving various financial considerations, from business valuations to investment portfolios. When significant wealth is on the line, taking strategic steps to protect your assets and ensure a fair outcome is critical.
Whether you’re dealing with real estate, retirement accounts, or closely held businesses, understanding how Maryland law affects asset division is essential. Below are seven critical steps you can’t afford to ignore in a high-asset divorce.
1. Hire a Top Rated Divorce Lawyer in Maryland
The first and most important step in protecting your wealth is hiring a qualified, experienced divorce lawyer in Maryland. High-asset divorces are often contentious, requiring a legal professional who understands family law and the financial intricacies involved.
A seasoned Maryland divorce attorney will help you navigate the division of marital property, negotiate complex financial settlements, and represent your interests in court if necessary.
According to Maryland law, marital property includes any assets acquired during the marriage, regardless of title, with a few exceptions such as inheritances and gifts. Your attorney will work with you to categorize assets correctly and ensure that your wealth is protected as fully as possible.
2. Understand Maryland’s Equitable Distribution Laws
Maryland is an “equitable distribution” state. This means that the court divides all marital property in a way that it deems fair, but not necessarily equal. Understanding how this affects your specific case is crucial. In making an equitable distribution of marital property, the court is required to consider various factors, including the length of the marriage, each spouse’s financial and non-financial contributions to the marriage, and the needs of any children.
For high-net-worth individuals, assets such as stock portfolios, business interests, and real estate investments can complicate the division process. With the assistance of a family law attorney in Maryland, you can work to ensure that the division of assets is truly fair, taking into account all relevant financial factors.
3. Properly Valuate Complex Assets
In a high asset divorce, some assets—like businesses, real estate, and other investments—require proper valuation to determine their true worth. Engaging the services of financial experts such as forensic accountants, business valuators, and real estate appraisers is often necessary.
According to Maryland’s family law statutes, both spouses are required to fully disclose all marital assets. However, in some cases, one spouse may attempt to undervalue or hide assets.
A top-rated Maryland family law attorney will collaborate with financial professionals to ensure a fair and accurate valuation of all assets. This step is especially crucial when dealing with closely-held businesses or large investment portfolios.
4. Be Wary of Hidden Assets
Hiding assets during a divorce is illegal, but it can happen. Methods of hiding assets may include transferring money to offshore accounts, creating trusts, or underreporting income. To protect your wealth, it’s important to work with your Maryland family law attorney to investigate any suspicious financial activity.
Forensic accountants can track down hidden assets and uncover financial discrepancies. A spouse caught hiding assets may face consequences with the court. If you suspect that your spouse is being dishonest about their financial disclosures, your attorney will know how to approach the issue effectively.
5. Negotiate Spousal Support Strategically
Alimony, also known as spousal support, is another critical issue to consider in high asset divorces. Maryland law allows for both rehabilitative and indefinite alimony, depending on the specific circumstances of the case. In high-net-worth divorces, spousal support payments can be substantial, so it’s important to negotiate these terms carefully.
A top rated divorce lawyer in Maryland will evaluate your financial situation and work to either minimize or maximize spousal support payments, depending on your role in the marriage. The court considers various factors when determining alimony, including the length of the marriage, the standard of living during the marriage, and the ability of each spouse to support themselves.
6. Protect Retirement Accounts and Investments
Retirement accounts and investments are often a significant part of a high-net-worth individual’s financial portfolio. Under Maryland law, retirement assets accumulated during the marriage are considered marital property and are subject to division.
To divide these assets, it’s essential to properly draft a Qualified Domestic Relations Order (QDRO), which specifies how retirement assets will be divided. A Maryland divorce attorney will ensure that the QDRO complies with both federal and state laws, protecting your retirement savings during the divorce process.
7. Plan for Post-Divorce Financial Security
Once a final settlement agreement is reached and/or your divorce is finalized, your financial situation will change, possibly drastically. Proper financial planning is critical to maintaining your standard of living and protecting your wealth moving forward. A family law attorney in Maryland can recommend financial planners who specialize in post-divorce asset management.
Additionally, updating your estate plan, changing beneficiaries on insurance policies, and revising retirement plans are all crucial steps to undertake after a high asset divorce. Without these updates, your ex-spouse may retain rights to assets you no longer want them to have.
Contact Us Today
Navigating a high asset divorce in Maryland can be daunting, but by following these seven critical steps and partnering with a Maryland family law firm, you can protect your wealth and secure your financial future.
If you’re facing a divorce involving significant assets, don’t hesitate to seek the help of a divorce lawyer in Maryland who specializes in complex asset division and financial negotiation.
