What Does Divorce Mean for Your Vacation Home?

If you own a vacation home, odds are that you consider it a place of serenity and fond memories. When couples separate and divorce is on the horizon, the question is inevitably asked: “What happens to our vacation house?”

First, you and your spouse can always agree on what to do with your vacation home. Examples of the types of agreements you and your spouse could reach are: agreement to sell it and divide the proceeds, one spouse could buy-out the other spouse’s interest and keep the home, or perhaps the home becomes part of a bigger picture estate plan or trust so that children and grandchildren may continue to enjoy it, despite any divorce. You can agree with your spouse about the fate of your vacation home at any time during the divorce process. You don’t have to wait until the divorce is final.

If you and your spouse cannot agree and you have a contested divorce case, your trial will likely be a year or more away. The court will decide what will happen to your vacation home only at the end of the entire process – and the court is limited to two options:

  1. Order the sale of a jointly titled vacation home and the equal division of any sales proceeds; or
  2. If the vacation home is titled only in one spouse’s name, the court cannot transfer title to the other spouse. However, if the home was acquired during the marriage with marital funds, the non-titled spouse has a martial property interest in the home. The court may order the spouse who owns the home to make a monetary award payment to the other spouse in consideration of their interest in the home and as part of the overall equitable distribution of marital property. “Equitable” does not always mean equal – who gets what depends on the courts consideration of a variety factors – some of which include the duration of the marriage, each party’s age, health, financial circumstances, and contributions to the marriage and property, and the circumstances that contributed to the divorce.

If you and your spouse do not agree on what to do with your vacation home, consider that prior to the actual divorce, the court cannot:

  • Force you or your spouse to sell your home;
  • Force you or your spouse to refinance any debt associated with the home;
  • Force your or your spouse to move out of a jointly titled vacation home. The one exception to this is if a party is ordered stay-away from a vacation home being used as one or both parties’ residence incident to a domestic violence protective order;
  • Force you or your spouse to pay the mortgage or carrying costs.

Also, if you and your spouse do not agree on what to do with vacation home, and it is titled in joint name or solely in your spouse’s name, the court cannot transfer it to you.

You and your spouse can enter into an agreement to do something other than what the court can do, which is legally binding and enforceable.

Before filing in court or entering into any divorce related agreement, you should consult with a family law attorney to determine what effect this has on the other issues in your case.

The Court has more options when it comes to what can happen to your primary home in a divorce. For more information about that, see our article, “What does divorce mean for your home?

For more information, contact Heather at hscollier@lerchearly.com and Erin at elkopelman@lerchearly.com.


You Committed Adultery. Now Tell Your Divorce Lawyer.

Liz EstephanLiz Estephan, Attorney

You and your spouse are on the cusp of getting a divorce or are already in the midst of the divorce process. You’ve been unfaithful, but are unsure if your spouse is aware. Do you admit you committed adultery? When do you admit you committed adultery? Should you tell your lawyer? When do you tell your lawyer?

These are all valid questions and concerns. You should be upfront and honest with your lawyer about past transgressions.

Your lawyer cannot properly defend or protect you if you are not honest with him or her. Be straightforward, do not try and sugarcoat what you did or did not do. You didn’t hire a lawyer to judge you and he or she should not — it’s not his or her job. Your lawyer’s job is to zealously advocate on your behalf.

However, your lawyer cannot do so if he or she is unaware of all the facts of your case. If your lawyer is aware of your transgressions, he or she is able to better control the narrative and will decide if or when there is a proper time to divulge the information to your spouse.

If you are not upfront with your lawyer, you could make strategic mistakes that have repercussions in litigation. For example, your answer to your spouse’s Complaint and Answers to Interrogatories must be signed under penalty of perjury. If you deny outright that you committed adultery under oath, you committed perjury.

Also, your spouse may have evidence that demonstrates you did indeed commit adultery and could use it against you at trial or another evidentiary hearing. If so, your credibility will be severely undermined in front of a judge and in turn, could have a detrimental effect on your case.

Don’t hide the truth about adultery from your lawyer. Being honest with your lawyer is to your benefit.

For more information, contact Liz at 301-907-2811 or erestephan@lerchearly.com.

Should I Get a Loan While Getting Divorced?

Erin KopelmanErin Kopelman, Principal

If you’re going through a separation or divorce and cash flow is tight, you’re not alone. Many families going through separation or divorce find it difficult to get their hands on cash and pay expenses, especially with the increased cost of going from having one household to two, and paying lawyers. Many people wonder if they should get a loan.

In general, at the time of divorce, the then-existing marital assets are valued and equitably divided between you and your spouse. In valuing an asset, the fair market value is reduced by any loan on which it is collateral.

For example, the value of a house is reduced by its’ mortgage. The Court determines what is equitable after considering a list of factors, which include, but are not limited to: each spouse’s contributions to the family, the economic circumstances of each party, the circumstances that contributed to the estrangement of the marriage, the duration of the marriage, each party’s age and health, etc. These factors include consideration of each party’s debts. While equitable does not mean equal, absent extraordinary circumstances, the division of marital property often ends up being equal or close to it. Also, in divorce, Maryland Courts cannot allocate debts, so you are stuck with the debts in your name; whereas the D.C. Court can distribute debts accumulated during the marriage. Therefore, when possible, it is better to spend marital property, rather than taking a loan.

For example, say that you are in Maryland and are getting divorced. You and your spouse have $50,000 in marital funds, and you need $20,000 to pay bills. You have two options. In Option A, you take a loan for $20,000. In this situation, at the time of divorce you and your spouse will each equitably divide the remaining marital funds of $50,000, so in divorce you and your spouse will each likely get $25,000 each, but you have a $20,000 loan that you are solely responsible for. In actuality, this leaves you with only $5,000 net and your spouse with $25,000 net. In Option B, you pay the $20,000 from the $50,000 marital funds. This leaves $30,000 remaining in marital funds, so in the divorce you and your spouse will each likely get $15,000 each. You are better off with Option B.

If you find yourself needing money in divorce, I usually suggest, in order of priority:

  1. If possible, always spend marital assets first on your reasonable living expenses and attorney’s fees. This will reduce the marital property being divided, but this is preferable to taking out a loan where you could be solely responsible for paying it back.
  2. If you cannot access marital assets to spend first, then take a withdrawal from a marital asset. Taking a withdraw from a marital asset reduces the value of that asset, so the reduced value is considered when valuing the asset for purposes of equitably dividing it. Again, this is preferable to taking out a loan where you could be solely responsible for paying it back.
  3. If you cannot take a withdrawal from a marital asset, then take a loan from a marital asset. Taking a loan against a marital asset can reduce the value of that asset, so the reduced value may be considered when valuing the asset for purposes of equitably dividing it. However, in Maryland, if the loan is in your sole name, you will be solely responsible for the loan payments in the divorce.
  4. Only if you cannot spend marital assets or take a withdrawal or loan against a marital asset should you turn to the option of incurring non-collateralized debt.

Each case is different, so if you find yourself needing money, you should consult a family law attorney. At Lerch, Early & Brewer, we guide our clients through the day-to-day decisions they have to make in the divorce process so that they make decisions that are in their best interests.

For more information, contact Erin at 301-347-1261 or elkopelman@lerchearly.com.

How to Manage Stress During Your Divorce

AvatarDonna E. Van Scoy, Principal

Few events in life pack a bigger emotional gut punch than separation or divorce.

Before, during, and after the legal process, you should expect to experience denial, anger, bargaining, and depression before you can move on to acceptance. These are normal emotions, and can be true even if both parties agree to the divorce. The grief surrounding a divorce and separation will be different for each person – some experience the full emotional spectrum while others only a piece of it. It is imperative during this time to educate yourself and practice self-care. It will be key to allowing you to successfully move forward with your life. 

Here are five things to remember and consider as you contemplate, begin, and complete your divorce:

1. Accept the Stress. Be honest with yourself. If you are dealing with a life event, such as divorce, stress is part of the process. An important first step is to acknowledge the stress.

2. Seek the Advice of Professionals. Securing an attorney will assist you in understanding the process and the law. Educating yourself about the process and the law will help to reduce your stress. It is important to be comfortable with your attorney. Be sure to be completely honest with your attorney. The attorney can only advise you based on the information you provide. 

An attorney is not a therapist. While they understand what you are dealing with emotionally, their job is to represent you legally. While not everyone needs a therapist during a life event, it is wise to do a check-in with a therapist to determine, with their help, whether a therapist should play a role in your stress management. Having someone to share your truths, concerns, and fears with that is not a friend or family member is often beneficial. Your attorney can help you locate a suitable therapist in your price range. 

3. Identify and Use Support. In addition to the professionals, identify a friend and family member who can and will listen to your day to day struggles. Be careful to avoid sharing the details of your divorce with everyone. Do not discuss your divorce with your children, even if they are grown. 

Speak to your therapist, family, friends, or do a computer search to find a local support group. It can be very helpful to share your story with others in the same situation. It is also useful to listen to others going through a separation and divorce.

4. Exercise Self-care. Each person has their own favorite activities or hobbies. It is important to allow time for yourself. Exercise, sleep, and eating well will be important. Go to the spa, go to the gym, or get a massage. Take a break to go fishing, golfing, or antiquing. Read a book, watch a movie or take photographs. Or try yoga. 

There are several ways to practice self-care. Caring for yourself will be critical. Set aside regular time and use it to relax in whatever way works for you.

5. There Will be Bad Days and Good Days. During this process you will experience both bad days and good days. In the beginning, the bad days will outnumber the good days. Some periods of time will be worse than others. Like the stress itself, acknowledge and accept the bad days. Using the steps above will lead to the good days starting to outnumber the bad days.

The separation process will come to an end. A resolution will occur. You will be divorced.  Most importantly, you will move forward.