Children are Still Struggling While Adults Return to Normalcy

As more of our population becomes fully vaccinated against Covid-19, many of us are now able to enjoy a greater semblance of normalcy. Mask-less trips to the grocery store, a return to the office, summer get-togethers with friends, weekend trips, and vacations are increasingly the norm.

For parents, however, it is important to understand that our children are not experiencing the same level of recovery. Children whose parents are in the process of separation or divorce have an even greater burden.

Children under age 12 cannot yet receive a Covid vaccine. Even children over age 12 who are able to be vaccinated have rules still in place in their schools and extracurricular activities. Most children have not experienced a full return to school or all of their regular extracurricular activities, and nearly all schools and other activities still require children to wear masks, among other restrictions. On top of that, many children have missed significant life events, including school graduations, the special senior years, missed college trips, and the special freshman years.

The disruption to children’s normal lives and schedules negatively impacted children in a variety of ways. Many kids experienced isolation during the pandemic. Children’s reliance on the internet brought with it an overreliance on electronics, and in many cases an over-indulgence or dependency on screens. While there is a dearth of robust medical studies to help us understand the full impact of Covid, incidents of mental health issues among children of all ages are reported to have increased during the pandemic.

To continue reading, check out the full article on Lerch Early’s website: https://www.lerchearly.com/news/children-are-still-struggling-post-vaccine-while-adults-return-to-normalcy.

A Groundbreaking New Child Support Ruling in Maryland

Liz EstephanLiz Estephan, Attorney

Awarding child support to a non-custodial parent doesn’t seem to make sense. Why would a parent who has access with his or her children for less time receive child support from the custodial parent?

Well, Kaplan v. Kaplan says exactly that. Kaplan, a case of first impression in Maryland may bring good news to some that child support could flow to the parent who doesn’t have as much access with his or her children.  In the Kaplan case, the Court of Special Appeals upheld a ruling by the Circuit Court for Montgomery County that awarded child support from the primary custodial parent to the other parent.

This case was unique in its fact pattern. First, this case was an ‘above-the-guidelines’ case. Meaning that, the current Maryland child support guidelines are capped for parties with a total gross income of $15,000 per month or $180,000 per year. In an above-the-guidelines case, the court has discretion to promote the objectives of the guidelines and take into consideration the particular facts of the case in order to determine child support.

The father in this case was a high earner — his base salary was over $1 million. The mother earned about $50,000. Even though the father in this case had a rigorous work schedule, the court awarded him primary custody of the children and the mother had visitation. The court also awarded the mother child support, which is atypical. Usually, child support flows to the parent who has more overnights with the child or children.

The court rationalized awarding the mother child support because she incurred expenses for the children when they were with her overnight. And as Maryland law supports, the children are entitled to the same standard of living at both of their parents’ homes and because of the income disparity, the mother in this case was unable to provide the same standard of living commensurate to the father’s if she did not receive child support because of the income difference.  

Some may find this ruling just while others may think it’s unfair. Keep in mind: child support is a benefit for the children. And if you think you may be entitled to a child support adjustment based on the Kaplan case, you should consult your attorney..

For more information, contact Liz at erestephan@lerchearly.com.

The Court of Special Appeals Weighs in on the Frozen Embryo Issue

AvatarCasey Florance, Principal

In my last post (Who gets the Frozen Embryos in the Divorce?), I explored how the Court might handle the disputed disposition of frozen embryos upon the divorce of the parents-to-be.

I hypothesized that the Court might view embryos as marital property, and I recommended consulting a lawyer as part of the assisted reproductive process to ensure that a clear and enforceable contract is in place regarding the disposition of any frozen embryos upon divorce or either party’s death. 

The Court of Special Appeals of Maryland has since answered the question I posed, in a reported opinion issued on April 29, 2021.  In Jocelyn P. v. Joshua P. (WL 1684645), the Court held, as a matter of first impression, that frozen embryos should be given special consideration in light of their potential for human life, and in light of the fundamental and coextensive rights of the embryos’ creators to decide “whether to bear or beget a child,” and accordingly the embryos should not be treated simply as property.  The Court also clarified and set forth the process that the trial courts should follow when addressing the disputed disposition of frozen embryos, using a blended contractual/balancing-of-interests approach.

First, trial courts need to consider the parties’ preferences as set forth in any existing agreements. This may include oral agreements between the parties, and would certainly include an express agreement drafted by the parties’ attorneys.

The Court was careful to caution that trial courts should not consider, however, “boilerplate language in third-party form contracts [such as the form contracts that many fertility centers utilize] that lack expression or direction from the progenitors” because such form contracts “will not qualify as an express agreement for this purpose.” This lends further support for my prior recommendation to engage an attorney to draw up a separate agreement with your partner as part of the assisted reproduction process, so that your and your partner’s intentions and desires are clear and will therefore likely be upheld by a court in the event of a later dispute. 

If there is no express agreement regarding the disposition of the frozen embryos, then the trial courts are directed to seek to balance the competing interests of the parties using six different factors, including the intended use of the frozen pre-embryo if preserved, the parties’ original reasons for undergoing IVF, and the potential burden on the party seeking to avoid becoming a genetic parent. 

Further, the Court of Special Appeals has directed that the trial courts should specifically not consider financial or economic distinctions between the parties, the number of existing children, or whether “reasonable alternatives” such as adoption may be available to the party seeking to become a genetic parent.  

Jocelyn P. v. Joshua P. is a lengthy and interesting read for divorce lawyers, and makes clear that this area of dispute is ripe for invasive and costly litigation when parties do not agree.

So how do you avoid this quagmire if you are thinking of using assisted reproductive technology? See a lawyer and have a clear contract in place between you and your partner regarding the disposition of any fertilized embryos. It will cost time and money upfront, but could save you a boatload of both in the future. 

The Modern Day File Cabinet: When Can You Access Your Spouse’s Electronically Stored Information?

Chris RobertsChris Roberts, Principal

Your spouse is in the shower and his or her phone lights up on the nightstand… a text message from an unknown number. You unlock the phone using the same tried and true six-digit password that has served as security for countless phones, computers, and email accounts. A string of text messages between your spouse and a lover appears. So begins a deep dive into every electronic device and email account you can get your hands on.

What’s a little snooping between spouses, you ask? Depending on what data you accessed and how, you may have violated a Federal statute punishable by incarceration for up to five years and fines of up to $10,000, per violation. That means that if you read three of your spouse’s unopened emails without his or her consent, you’re looking at a potential 15 years in the slammer and $30,000 in fines.

Don’t Access Your Spouse’s E-mails and Text Messages Without Their Consent

Electronically Stored Information, often referred to as ESI, can take many forms. One bright line distinction is whether or not the ESI is “in transit” when it is obtained. Federal law and many state statutes prohibit the interception of electronic communications without the knowledge and consent of at least one party to the communication. This means that you cannot open an unread email sitting in your spouse’s inbox unless they are aware and consent to your doing so.

This same prohibition applies to the interception of text messages, messages on social media, phone calls, or any other type of electronic communication. As a simple rule of thumb, if you have to access the information on any type of electronic device, it is probably illegal to do so.

Not only is it a crime to intercept electronic communications, generally speaking, illegally obtained evidence is not permitted to be used as evidence in court. So that smoking gun you found by rifling through your spouse’s DMs likely will do you no good in a contested hearing.

The Family Computer Is a Different Story

The same prohibitions do not apply to static data no longer in transit, which is stored on the hard drive of a desktop, laptop, or other electronic device.

Whether or not you can make use of static ESI hinges on whether you have legitimate access to the device. If data is protected by a password that only your spouse knows, in most cases you are not permitted to guess your way into the machine or otherwise hack your way into the data.

Think of a computer as a filing cabinet in the marital home. If the filling cabinet is unlocked, you have a key, or everyone in the house knows the key is somewhere in the junk drawer in your kitchen, you clearly have a right to access the files in the cabinet. If only your spouse has the key to the cabinet and it is known to be off-limits, you may not have a right access it.

Similarly, if your spouse has given you the password to a computer or other electronic device, in most cases you can access the data on the device. The same may go for a device protected by a commonly used family password. Not only can you access these devices, you may also rely on the assistance of an expert to obtain or analyze the data. This can include clandestine imaging of the device, which allows you to obtain all of the data on the device, preserving it for later use and analysis. Hard drives or other electronic storage may include financial information, family budgets, account information, estate planning, and a wealth of other information.

Other Considerations Related to ESI

If you have any reason to anticipate a dispute or court litigation with your spouse, you should never destroy data. Litigants have a duty to preserve evidence, and the destruction of evidence, also knowns as spoliation, can result in severe sanctions in a court litigation. This could include a judge dismissing your court filing and requests for relief altogether. It also may paint you as a ‘bad actor’ in the Court’s eyes, which can negatively impact your case in a number of ways.

There are many software programs with allow you to capture data from a device as it is generated, including keystroke logging software and similar programs. Keep in mind that, even though you are not actively monitoring the device, you will be held responsible for whatever the program is doing. These programs may be violating Federal or state law, which means you may be breaking those same laws.

In addition to Federal law related to the collection and use of ESI, each state has its own laws, which may differ from the Federal rules and those in other states. Consideration of efforts to collect or use ESI is heavily reliant on the specific rules and language of the applicable statutes, as well as the specific facts in each case or circumstance involving ESI.

If you have any question about the legality of your efforts to pursue ESI, you should consult with an attorney familiar with the applicable laws in your jurisdiction. In many cases, they may also suggest consultation with a forensic computer expert. Getting this advice and guidance early on may not only keep you out of trouble, but could also enable you to safely and legally capture ESI that could be invaluable later.

The Truth Will Set You Free: Why Credibility is Currency in Divorce and Custody Cases

AvatarErik Arena, Principal

Most of us have done things we are embarrassed about or ashamed of — things we would rather not share in polite company, for fear of being judged.  We omit, shade, deflect or deny for the sake of maintaining appearances. 

This tendency surfaces frequently in family law courtrooms across Maryland and the District of Columbia, where judges and magistrates are, in fact, tasked with assessing the fitness and credibility of spouses and parents every day. Spouses and parents must decide, sometimes rather quickly, whether or not to tell the unvarnished truth about themselves, or a glossier, filtered version. All too often, they choose poorly. 

Why? For two reasons:

  1. Each lie of avoidance, omission, or denial erodes your credibility with the Court, which can be very hard to overcome in totality

Of course, the goal is to put yourself in the best light. However, that is done by being honest – not be being beyond reproach. Simply put, it is better to present to the Court as an honest, flawed person, than one who is untruthful. This applies to just about everything not otherwise protected by the 5th Amendment privilege against self-incrimination. 

Believe it or not, the Court has heard it all at one time or another. And none of us is perfect. A few lies, denials, or omissions, particularly those that are verifiably false, can be enough to taint the Court’s impression of your overall character for truthfulness and place a cloud over all of your testimony [and future testimony in future actions]. That can be far more costly than the embarrassment, humiliation, or damage done by admitting your mistakes. 

  • In family law cases, many important facts cannot be corroborated by independent testimony or documents, meaning key issues can be decided solely based on the credibility of the parties. 

Trying to wallpaper over character flaws with deceit can have grave consequences for other important factual determinations that, oftentimes, must be based solely on a party versus party credibility assessment [due to the absence of corroborating testimony or documents]. 

So, what kinds of critical fact determinations can end up being made solely based on credibility? I have listed a few examples below to illustrate their magnitude:

  • Who did the majority of the parenting during the children’s formative years;
  • Whether or not you told your spouse it was ok not to go back to work;
  • Whether or not the money you received from your spouse’s parents to buy your first home was a gift to your spouse or to you and your spouse;
  • Whether or not your or your spouse’s spending was a cause for friction during the marriage;
  • Whether or not you had an affair years ago, or even recently (for more on this, check out the blog post from my colleague Liz Estephan: “You Committed Adultery. Now Tell Your Divorce Lawyer.“;
  • Whether or not the cash you withdrew from your joint checking account was spent on family expenses or other, less beneficial purposes;
  • Whether or not the money you wired to family was discussed with your spouse prior to so doing;
  • Whether or not you drank to excess or used illicit substances;
  • Whether or not you humiliated or belittled your spouse or children in private. 

As you can see, being dishonest in some areas, or several, can call into question the credibility of the testimony you will give on other, more weighty facts critical to the Court’s determinations of property, alimony, or child custody. 

So, when faced with telling the (perhaps) ugly truth or saying what you think the Court wants to hear, there really isn’t a choice. Only by being truthful can you mitigate the damage done to the Court’s assessment of your character and, consequently, the merits of your case. The slope is far steeper and slipperier for those lacking in candor.

For more information, contact Erik at eparena@lerchearly.com or 301-657-0725.

Should I Borrow or Accept Money from Family While Getting Divorced?

Erin KopelmanErin Kopelman, Principal

Cash flow is a common concern for most people going through separation or divorce. Many clients ask me if they can accept or borrow money from family.

While accepting or borrowing money from family may seem like an economical option because it often does not require a loan agreement, interest, penalties or preapproval, it can actually have unintended and potentially harmful consequences on the remaining aspects of your divorce.

Gifts from Family

Two issues that arise when you receive gifts from your family to pay expenses if you are divorcing are: (1) those gifts can be considered income to you; and (2) that gift, had you not spent it, would be yours to keep in divorce and not divided with your spouse.

First, gifts from your family received during the marriage, especially if given routinely, can be included and counted as your income in divorce.  The gifts can increase your income for purposes of determining alimony and child support, with the potential effect of requiring you to pay more or receive less alimony and/or child support. Also, the gifts can be considered in the equitable division of marital property. Therefore, receiving gifts from family may have a negative impact on you in the outcome of your divorce as it relates to alimony, child support and the equitable division of marital property.

Second, gifts from your family to you individually during the marriage are your sole, separate and non-marital property. Generally, if you can prove the source of the gift is from your family and that it is not comingled with marital property, then you keep gift, and it does not get divided between you and your spouse in divorce. If you receive gifts from your family, you should not spend them. You should instead keep them and not comingle them with marital property. For steps on how to protect gifts from family, check out this article on Steps to Protect Your Inheritance and Gifts Received from Third Parties.

Assume that you’re getting divorced, there is $50,000 in marital funds, you need to pay bills of $20,000, and your parents give you $20,000. You have two options. In Option A, you spend the $20,000 gift from your parents. In divorce, you and your spouse will equitably divide the remaining marital funds of $50,000, so you and your spouse will each get approximately $25,000 in marital funds. In Option B, you preserve the $20,000 gift from your parents and do not comingle it with marital funds, and you pay the $20,000 in bills from marital funds. In divorce, you and your spouse will equitably divide the remaining marital funds of $30,000, so you and your spouse will each get approximately $15,000 in marital funds, and you will keep $20,000 from your parents. So, while your spouse ends up with $15,000, you end up with $35,000. You are better off with Option B.  Therefore, if you need money, spend marital money first, rather than gifts from family.  Preserve and do not spend the gifts from your family.

Loans from Family

Two issues that arise if you receive loans from your family to pay expenses in divorce are: (1) you may be left solely responsible for those loans; and (2) loans from family may not be given as much weight as other debts.

First, you are likely to be left solely responsible for the debts you incur in your sole name.

Maryland Courts cannot allocate debts, so after divorce you will be solely responsible for the debts in your name. D.C. Courts can distribute debts accumulated during the marriage, but there are no guarantees in court. If you are getting divorce and individually borrow money from your family to pay bills, the remaining and unspent marital property will be equitably divided. While debt is considered in the equitable division of marital property, in Maryland you will be left responsible for the debts in your individual name, and in D.C. you could be. So, when possible, it is better to spend marital property rather than taking a loan.

Assume that you’re getting divorced in Maryland, there is $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. Therefore, if you need money, spend marital money first before you take a loan.

Second, if you are taking a loan, it is up to the Court how much to weigh the evidence in their ultimate decision when equitably dividing the marital property (and in D.C. when also equitably dividing the debts accumulated during the marriage). Courts may be less likely to heavily weigh debts from family, as opposed to debts from banks or on credit cards. Therefore, if incurring a debt is necessary, then consider getting a debt from a bank or putting it on a credit card. If you choose to get a loan from family, then you should at a minimum sign a note or other loan document confirming the money is a loan and the repayment terms.

In summary, you are likely better off spending marital assets, as opposed to spending money from family, whether gifts or loans because whatever marital assets are left will be divided between you and your spouse. If you do need money and cannot access marital funds, then I suggest you take a loan, rather than spending gift money, and check out my article Should I Get a Loan While Getting Divorced? 

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.

Donna Van Scoy Honored as One of Maryland’s Top 100 Women by The Daily Record

Family Law GroupFamily Law Group

Divorce attorney Donna Van Scoy has been selected as one of Maryland’s Top 100 Women by The Daily Record.

According to The Daily Record, “Maryland’s Top 100 Women recognizes high-achieving Maryland women who are making an impact through their leadership, community service and mentoring. Winners are selected by past Top 100 Women and business leaders.”

A highly regarded member of the family law bar, Donna also made this list in 2013.  Additionally, The Daily Record previously recognized Donna as a Leader in Law. 

Click here to read the full release: https://www.lerchearly.com/news/donna-van-scoy-honored-as-one-of-marylands-top-100-women-by-the-daily-record

Let’s Collaborate!

Over the first two weeks in March, we completed training to qualify us to practice Collaborative Divorce. In sharing feedback at the conclusion of the training, we both are excited about having a new option to offer our clients in terms of process.

Perhaps the most enticing part of Collaborative is the team-based approach and the transparency – it is a holistic approach that empowers clients to make informed decisions for their family’s future. Collaborative also offers a paradigm shift from the standard approach to separation and divorce; it discards the traditional, adversarial, position based approach in favor of a cooperative, interest-based approach that is often less combative and more constructive.

What is Collaborative Divorce and how does it compare in terms of process and cost to more traditional options like litigation?  Inspired after our training, we break it down for you here:

The Collaborative process represents an entirely different construct than the traditional litigation model. It forges an entirely distinctive path. Unlike mediation or even similar collaborative-style dispute resolution tools, a true collaborative process, governed by a Collaborative Participation Agreement, operates in a wholly different universe than litigation.

The Collaborative process is the definition of ‘pot committed.’ Both parties commit fully, to each other and the process, from the outset.  The process requires more than just a theoretical commitment. The parties must hire a Collaborative team, including attorneys for both parties, one or more “coaches,” a financial neutral, and perhaps other neutrals such as a child specialist, a forensic business valuator, or mental health professional. All of the professionals will have received training in the Collaborative process.

Some of the anchors of the Collaborative process are:

  • No Litigation
  • Client Self-Determination
  • Full Disclosure
  • Cross-team Communications
  • Creativity

How does the cost compare to a traditional case proceeding in a litigation model? 

Litigation: The cost of filing a complaint for divorce is relatively nominal, perhaps a couple hundred dollars, but then the case may take a life of its own as the issues grow and expand and more professionals must be involved. So, the expense starts out small and balloons in ways the parties may not have anticipated. Additionally, there are two sets of expense, for every issue and professional. 

Collaborative:  The upfront investment is larger, but the universe is well-defined. There is efficiency in hiring joint neutrals for some roles, and the parties are jointly incentivized not only to narrow the issues in their case but also the related expenses.   

As with so many aspects of separation and divorce, there is no one-size-fits-all approach to choosing the right process for you. The circumstances of each case, including the personal dynamics between the parties are critical considerations. 

Anyone considering the Collaborative process should seek advice from a qualified and collaboratively trained divorce attorney regarding all of the potential divorce options so you can carefully choose the process that meets your need. 

For more information, contact Heather at hscollier@lerchearly.com or Chris at cwroberts@lerchearly.com.

Who gets the Frozen Embryos in the Divorce?

AvatarCasey Florance, Principal

Scrolling through the newsfeed on my Facebook page recently brought me to an article about the actress Sofía Vergara’s long legal battle with her former fiancé, Nick Loeb, over the disposition of their frozen embryos.

They had apparently planned to have children – and gone through the beginning stages of the process to do so – but then broke up before any of the embryos were brought to term. At issue in the multiple lawsuits across multiple states was the fiancé’s desire to keep the frozen embryos and bring them to term without Vergara’s consent. Vergara opposed these requests and sought court intervention to stop his unilateral actions.  

Like so many of the issues we deal with in divorce, what is supposed to be an exciting and happy time for a couple can quickly turn into an expensive and protracted dispute if the relationship sours. Compounding the issue here is that technology develops at a much faster pace than our laws do, despite many of our legislators’ best efforts. As a result, if you are considering expanding your family using assisted reproductive technology, you may want to consult with a lawyer as part of the process.  

Most fertility clinics have expansive paperwork that each hopeful parent must complete as part of any assisted reproductive technology process. Included in the many decisions the hopeful parents must make are what should happen to any fertilized embryos following the process. Will the extras be stored? Disposed of? And what should happen to them if one party wants to dispose of them but the other party does not? What about if one party were to pass away? Can the other party keep them and use them as he or she sees fit?

If the hopeful parents have elected to keep the fertilized embryos stored, and then their relationship ends, what happens to the embryos then? And can a court intervene?

What can the Courts do?

In Maryland, the court would not have jurisdiction to make a custody decision regarding frozen embryos. The court can only make custody decisions with regard to a “child” which is defined in multiple places in our Family Law statutes as an “individual under the age of 18” (with some exceptions). Frozen embryos are not children because they have not been born yet so, political/religious stances notwithstanding, a custody action is of no utility.

If the hopeful parents were married when the embryos were created, then the embryos would arguably be considered “marital property” at the time of the divorce – which is defined as property, however titled, acquired by one or both parties during the marriage. If the parties’ contract with the fertility clinic is not clear on the disposition of the embryos upon a divorce, then the court could have the power to determine ownership of the embryos under the marital property statute. Whether the court would actually do it, however, given the ethical and legal ramifications attendant to granting one parent the ability to create a life that the other parent has not consented to, remains to be seen. 

How do you avoid this possible quagmire? See a lawyer and have a clear contract in place between you and your partner regarding the disposition of any fertilized embryos. It will cost time and money upfront, but could save you a boatload of both in the future.

For more information, contact Casey at 301-657-0162 or cwflorance@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.