Baltimore, Maryland High Asset Divorce Attorneys

Lawyers for High Net Worth Divorce Cases in Baltimore, MD

Divorce can be a difficult process for anyone, but when a couple has accumulated significant wealth, a case may involve legal and financial issues that are especially complex. During a high asset divorce, the parties may need to locate and evaluate different types of assets, address tax consequences, and handle numerous other financial concerns. Legal help from an experienced attorney can be crucial in these situations.

At Silverman Thompson, we have extensive experience representing people in Baltimore in divorce matters involving valuable assets and complex marital estates. We understand the financial concerns that will need to be addressed in a high net worth divorce, and our legal team works with forensic accountants, business valuation professionals, real estate appraisers, and other financial experts to make sure all assets and financial concerns will be handled correctly.

Business Interests and Valuations

In cases where spouses own an interest in a business, this asset will need to be handled correctly. The first question will be whether the business is marital property that is subject to division. A business founded before a couple's marriage may be a non-marital asset, but if the non-owner spouse contributed to the business and helped it increase in value, they may need to be compensated for their contributions.

Spouses will also need to understand the value of a business. A business valuation may look at a business's capacity to generate earnings, the business's assets and liabilities, or the amount the business could be sold for. Our attorneys work with experienced valuation experts who can review all relevant factors and provide the information needed to make decisions about how a business will be handled.

Once a value is established, the parties must decide how the business will be addressed along with other marital assets. Options to consider when dividing marital property may include a buyout by one party, a sale of the business, or continued co-ownership and an ongoing business partnership.

Real Estate Property

Real estate assets will often need to be addressed in high net worth divorces. Couples may have significant real estate holdings and multiple properties that will each require individual attention. A family's primary home, any vacation residences or secondary homes, investment properties, or commercial real estate may need to be considered.

The options for addressing real estate in a divorce include selling a property and dividing the net proceeds, having one spouse assume sole ownership, or a deferred sale arrangement that may allow a couple to wait a certain amount of time before selling the property.

Retirement Accounts and Pension Benefits

Retirement assets such as 401(k) accounts, IRAs, pensions, deferred compensation plans, and other retirement benefits may be considered marital property. They will need to be addressed along with other marital assets, and they may be divided between spouses. In a high asset divorce, retirement benefits can be substantial, and the ways they may be divided could have lasting tax implications or other financial effects for both parties.

401(k) accounts and defined benefit pension plans may be divided through a Qualified Domestic Relations Order (QDRO). IRAs may be divided through a transfer incident to divorce. Following these procedures will prevent taxes and penalties from being assessed when withdrawals or transfers are made.

Asset Dissipation

In a high asset divorce, a spouse may misuse or conceal marital property. Asset dissipation involves the waste, destruction, transfer, or concealment of marital assets, and it may be addressed during the property division process.

Dissipation may involve wasteful or reckless spending, money spent on extramarital affairs, transfers of assets to third parties for the purpose of avoiding property division, deliberate destruction of marital property, incurring unnecessary debts, or the manipulation of business finances to hide assets.

Uncovering dissipation will often require a financial investigation. Forensic accountants can review records to identify undisclosed accounts or improper spending patterns. Discovery tools like subpoenas or depositions may also be used to determine whether a spouse dissipated marital assets.

When dissipation has occurred, courts may address this issue by awarding the other spouse a larger share of marital assets to compensate them for the financial losses that have occurred. Our attorneys can advocate for solutions that will protect our clients' interests and help prevent ongoing financial difficulties due to the other party's behavior.

Additional Financial Matters in a High Asset Divorce

Other issues that spouses may need to address when they have a high net worth include:

Investment Portfolios and Financial Accounts

Brokerage accounts, stock portfolios, and other types of investments owned by a couple may need to be considered. The value of these investments will need to be determined, and if assets will be divided, a couple will need to understand the tax consequences.

Deferred Compensation and Other Executive Benefits

Executives and other types of employees may receive benefits such as deferred compensation arrangements, stock options, or other forms of compensation that may vest over time. Determining the marital portion of these benefits can ensure that a couple will be able to divide their assets correctly. The tax consequences of dividing certain assets may also need to be considered.

Trusts and Inherited Assets

Assets that are held in a trust or received by a spouse as an inheritance will generally be considered non-marital property. However, determining how these assets will be handled may be more complex in cases involving inherited funds that have been commingled with marital assets or trusts in which both spouses are beneficiaries. Our attorneys can help trace the marital and non-marital components of these assets to ensure that marital property can be divided equitably.

Spousal Support Considerations

In marriages where there is a large difference in income or earning capacity between spouses, alimony may be a factor in a divorce. An alimony award may be appropriate if it will be needed to ensure that one spouse will be able to support themselves and maintain their accustomed standard of living. Our lawyers can help our clients address issues related to spousal support and determine how these matters may influence decisions about the division of property.

Contact Our Baltimore High Asset Divorce Lawyers

At Silverman Thompson, we have the skills and experience needed to provide legal representation for clients who have a high net worth and ensure that they can complete the divorce process successfully. We can provide guidance on the best ways a person can protect their financial interests and resolve complex issues that may arise during their case. Contact our Baltimore, MD high net worth divorce attorneys at 410-385-2225 to set up a confidential consultation today.