Most couples who are going through a divorce in the state of Maryland will need to work through and decide how to divide any assets and property the couple has purchased during their marriage. The goal is that these assets are divided in a fair and equitable way. For example, if the couple has approximately $100,000 equity in the family home and another $100,000 in stocks, one spouse may get the house and the other spouse the stocks. But if the couple owns a business, the division of this asset is often more complex than dividing other assets. If you are going through a divorce and you and your spouse own a business, call Peerless Law to speak with a divorce lawyer Frederick, MD clients trust.
One of the factors that can make dividing a business difficult is that the value of the business may fluctuate from one week to the next, depending on the nature of the business. There are other factors that the courts will look at when determining how the business should be divided.
The first factor the court will determine is whether or not the business is considered marital property. If one spouse started the business before the marriage, and all of the profits and any assets the business owns were kept entirely separate from other marital assets, the courts will probably deem the business as separate property and not part of the marital estate. In other words, the business is not an asset that needs to be distributed with other marital assets per the laws of the state of Maryland.
However, if the business was started during the couple’s marriage and assets from the business were in joint accounts or if any profits made from the business were used to pay marital debts and expenses, then the courts may deem the business as part of the marital estate and distribute per the laws of the state.
A Fredrick, MD divorce lawyer can evaluate your information and determine if the business owned by you and/or your spouse should be addressed in your divorce.
If the business is determined to be part of the marital estate, the next step will be to determine its value. If both spouses agree to the value and the court agrees the amount is fair and reasonable, then there should not be any further action necessary. Unfortunately, it is not often that easy and each party usually disagrees on what the value of the business is. That means the court will have the final decision.
There are a few ways this may occur. The court may order a professional appraiser to determine what the fair market value of the business is. The appraiser will include both the present dollar amount as well as include what the projected future income of the business will be, current capital and assets, and even the “goodwill” of the business, such as its reputation and/or the value of the name of the business.
To learn more about asset and property division and other issues that need to be decided in a divorce, contact Peeples Law to meet with a skilled Frederick, MD divorce lawyer. Call our office today.
When you are going through a divorce, you have to eventually come to agreements on many issues, such as property division, child custody, and spousal support. Here are a few tips for doing this peacefully.
Getting divorced is a stressful process and can cause you to feel a wide range of emotions. However, if you let your emotions get the best of you, your spouse and his or her lawyer may use that against you. They will learn what your triggers and put you at a disadvantage during the negotiation process. That is why you should try your best to maintain your composure and think rationally. If you need help getting control of your emotions, consider talking to a therapist.
In divorce negotiations, it is common for people to only focus on what they want. After all, why should they care about what their spouse wants? However, if you take the time to ask your spouse what he or she wants and be willing to compromise the process could go much smoother.
In order to negotiate a fair settlement with your spouse, you have to give all the facts and vice versa. Don’t try to hide your assets, no matter how small you think they may be. If the court finds out, it could jeopardize your divorce case. If you don’t believe your spouse is being truthful about assets, your divorce lawyer in Frederic, MD can hire an accountant to look into it.
When you are going through a divorce, it is natural to feel some degree of sadness, bitterness, or even anger towards your spouse. However, if you focus on all the ill feelings you have towards your spouse, it will just prolong the divorce process and make things more difficult for yourself. Instead, just focus on the problem at hand. For instance, if you have children, determine the best way to divide custody. This way, you can remain objective in your discussions and avoid making costly mistakes.
During divorce negotiations, you will have to communicate with your spouse. If the two of you are not on good terms, this might seem difficult at first. However, you should try to speak to your spouse as respectfully as possible and say what you really mean. If it is impossible for you and your spouse to communicate without getting into a screaming match, your divorce lawyer in Frederick, MD can just negotiate with your spouse’s lawyer.
One issue many people overlook as they are examining all the issues in their divorce is the division of marital debt. Payment of debts during and following a divorce is often a difficult issue to resolve. The reality is that both spouses may struggle financially during a divorce, simply because one household has split into two separate households, each of which has its own share of expenses. Since non-payment of debts can have such a lasting impact on your credit and your financial future, it is imperative that you enlist the assistance of an experienced divorce lawyer in Frederick, MD who can help you reach an acceptable resolution to the payment of your marital debts.
Dividing marital debts in your divorce is just as important as dividing marital property. If you and your spouse have any joint car loans, mortgages, personal loans, credit card accounts, or lines of credit, you both are financially responsible for those debts. This means that even if your spouse is supposed to pay a particular debt, but he or she doesn’t do so, you are still legally responsible for paying that joint debt. To be sure, the creditor can take legal collection actions against you for that debt, even if your now-ex-spouse is supposed to pay for it.
Additionally, even if your spouse separately incurred a debt during your marriage, you could be held responsible for it, depending on the situation. These facts make it essential that you work closely with experienced divorce lawyers who can help ensure that you don’t end up saddled with all of your spouse’s credit card debt.
In many cases, you and your spouse are able to come to an agreement, with the assistance of your Frederick, MD divorce lawyer, about who will pay what debt. In other cases, however, it is up to the divorce court to decide a fair and just allocation of debts between you and your spouse. The court will consider different factors, such as your incomes, assets, existing liabilities, earning potential, and current employment situation in determining which spouse is responsible for each debt.
For example, if you are in a significantly better financial position than your spouse, and earn substantially more income, then you may end up with more than half of the marital debt, or even being responsible for debts that your spouse solely incurred. It is up to the discretion of the court to devise a resolution that is just and equitable for both parties involved.
Divorce is always a difficult process, and the payment of debts can be a definite stressor as you and your spouse attempt to resolve your differences and reach a mutually acceptable divorce settlement. If you are in this situation, it is essential that you achieve a marital debt division that is fair and equitable. In this case, you need the assistance that only a seasoned Frederick, MD divorce lawyer can give you. Call Peeples Law Group to schedule a free consultation.