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The pain of divorce is emotional and financial. Not only is the significant relationship in your life at an end, but your financial future is beginning to look murky. While every divorce is as unique as the two people who are separating, there are common financial issues that most couples will have to face. The following are a few of those financial issues that can arise and must be resolved during the divorce process, according to an article in The Balance.

Asset division

The division of assets is one of the most challenging aspects of divorce. People develop attachments to their material possessions, and figuring out how to divide up the belongings you have accumulated can be difficult. In Maryland, asset division follows the equitable division model of distributing marital assets if the courts must oversee property division. The parties can develop their own agreement for how the property will be divided, but if they are unable to come to an agreement, the judge will follow the equitable distribution model to divide the property, which does not always mean straight down the middle, but in as fair a manner as possible.

Division of debts

Any outstanding debts that the parties have incurred during the marriage must be resolved as part of the divorce agreement. Both parties should pull their credit reports to find out how much they owe, close any joint accounts, determine which debt is in which party’s name, and come to an agreement on how those debts will be paid and by whom. If they cannot, their individual lawyers, along with any financial experts they hire, can assist in this.

The article in The Balance offers these options for resolving joint marital debt during divorce:

• Pay off the debts you can pay off now.
• Agree to take responsibility for the debts in exchange for receiving more of the assets.
• Agree to let the other party take responsibility for the debts in exchange for receiving more of the assets.
• Agree to share the debt equally, keeping in mind that you may still be held liable if the other party does not keep their agreement.

If the two parties cannot reach an agreement (with or without lawyers), then a judge will divide the marital debts as he or she divided the assets. It is important to note that not all debt incurred during the marriage is marital debt, and a skilled Annapolis family lawyer attorney can assist you with determining which debt is marital debt.

Tax issues related to divorce

Taxes can be a long-view problem: if you divorce in May, for example, you may not even think about your taxes until the following January. However, it is important to address tax issues during the divorce process, so that there is no confusion the following year. Some of the tax issues that may arise as you are moving through divorce might include:

• Deciding who will take the tax deduction for the children (typically, the custodial parent takes the exemption)
• Who will claim “Head of Household” on the final tax return?
• Will alimony payments be tax-deductible? (The new tax law put into effect for 2019 changes how alimony is treated. Be sure to discuss this with your attorney).

Dividing retirement plans in divorce

You may be entitled to receive half of your spouse’s retirement savings, but you will want to consult with your divorce attorney and your CPA to make sure you avoid the 10% IRS tax penalty for early withdrawal.

Finally, if you are planning to get a divorce, make sure to educate yourself about all aspects of your financial position. Working with an experienced Annapolis divorce attorney can save you money in the long run by saving you time, helping you to avoid needless litigation and vigilantly protecting your interests while you might be consumed by emotion and dealing with chaotic life changes.

At Cynthia H. Clark & Associates, LLC, our experienced Annapolis divorce attorneys are here to protect your interests during a challenging time when your world seems to be falling apart. You most likely have many questions about the financial aspects of divorce. Please call 410.921.2422 or fill out our contact form to reserve a consultation time with a member of our team.

Jake is a divorced dad who was prohibited from seeing his children by a civil protection order that his ex-wife was able to obtain by telling the court that he had dangerous mood swings, blocked her Internet access, and tried to obstruct her from driving away with the kids. Even though Jake denies these allegations, he was still prohibited from seeing his children.

Reporter Lisa Ling spoke to fathers about how they are treated by the court system in a CNN original series, “This Is Life.” Jake’s story is featured, as are the stories of other fathers who feel they have been denied access to their children, or have been treated unfairly.

How this issue is affecting Maryland parents

A Washington Post article reports on a Maryland special Commission on Child Custody Decision Making, which met for over 18 months and heard from more than 200 stakeholders  including judges, family law attorneys, and mental health professionals,  and studied how child custody decisions are made in family courts. Although the final report was issued in 2014, the reforms recommended have yet to be put in place. The current standard in Maryland is the “best interest of the child”; however, many activists, including fathers’ rights advocates, are pushing for the presumption of joint custody standard.

The 330-page report recommends that Maryland adopt a custody statute, which guides both litigants and judges about the considerations made in custody decisions, that parties in custody disputes submit parenting plans, and the terms “custody” and “visitation” are replaced with “parenting time” and “decision-making responsibility.” It also examined whether gender discrimination exists in custody decisions, and if so, how to address it. The Commission recommended that judges be educated to identify and eliminate explicit and implicit bias in decision-making.

As the Post story reported, the Maryland Commission opted against changing the standard to shared parenting because they believe that judges still need to have the discretion to determine what is in “the best interest of the child,” as not every co-parent is equipped to share custody.

Options for fathers

The CNN story included some questions and answers for fathers who have encountered challenges with child custody issues. If a father is having trouble paying child support, he is advised to make a good-faith effort to keep up with payments and to hire a lawyer. If he can’t hire a lawyer, he can still seek legal advice and support from nonprofit organizations, like the Anne Arundel Bar Association, who may be able to direct him to an attorney offering pro bono services.

When it comes to rights for unmarried fathers, fathers were advised to step up and voice their intention to establish a relationship with their children.

As for the fate of dads like Jake, who feel that protection orders are unfair, the CNN story reports that they probably protect more people than they hurt. Civil protection orders are protective in nature, and most judges – if they believe that the spouse who filed for the order and/or the children are in danger – will issue a temporary protective order (or peace order, depending on the circumstances), erring on the side of safety.

If a father believes the accusations of bad behavior or abuse are groundless, he can have a witness with him on visits with his child, or in-person interactions with his co-parent. He can also work with an attorney to have the order dismissed, if the final hearing has yet to take place

Facing a child custody dispute can be challenging for fathers and mothers. Having the support of an experienced Annapolis child custody attorney on your side will help ensure that the child’s best interests are always protected.

At Cynthia H. Clark & Associates, LLC, we fight for the best interests of your child. Our divorce attorneys are here to represent you in all matters of family law. You can schedule a consultation at our office in Annapolis by calling 410.921.2422 or filling out our contact form now.

While the landmark 2015 U.S. Supreme Court decision of Obergefell v. Hodges made same-sex marriage legal throughout the country, the state of Maryland is proud to be the first state to legalize same-sex marriage, back in 2013. Along with the right for same-sex couples to marry came the right to get a divorce.

As all couples are now equal under the law, you might assume that LGBTQ couples don’t face additional challenges – but that is not the case. We wanted to discuss those potentially problematic areas here.

Division of assets

Many same-sex couples have had long-term committed relationships for years, even decades prior to the law’s recognition of their unions. In Maryland, however, only marital property is subject to division under the equitable distribution model of asset division. Therefore, the division of assets will only consider the property that the couple has acquired or comingled since the marriage took place, which also applies to divorcing heterosexual couples.

For example, if one spouse purchased a home several years prior to the legalization of the marriage, and never added the name of his or her partner to the deed and/or mortgage, only the equity which has accrued since the marriage is considered marital property.

This issue could also arise in regard to pensions. If, for example, you are an employee of the State, then the Court may consider the length of the marriage before deciding how much of your soon-to-be-ex-spouse’s pension you are entitled to receive. If you have been together for 20 years, but only legally married for seven years, then you may only be awarded seven years’ worth of that pension.

Alimony and spousal support

The length of the marriage is just one of the factors that the court uses in determining whether alimony would be appropriate in a divorce agreement. Other factors include the couple’s standard of living while they were married, both spouses’ financial resources and needs, each spouse’s contribution to the marriage, and so forth. Alimony, remember, is never guaranteed to either spouse.

In situations where one spouse works outside of the home, and the other takes care of the home and the children, it is possible that the Court may not consider the years the couple was together before they were legally married. Therefore, if the relationship and their agreement (about who will stay at home and who will work outside the home) pre-dates their official marriage date, the final alimony award may only be based on up to seven years of marriage. This scenario also applies to heterosexual couples.

Child custody and support

Custody and support are often challenging issues in divorce, regardless of the sexual orientation of the parents. If a same-sex couple has given birth to the child after their legal marriage, then both spouses are legal parents of the child, and custody and support can be decided as it would be for a heterosexual couple. If the child was born to one of the spouses before the marriage, or if one of the spouses adopted the child prior to the marriage and the second spouse did not legally adopt the child, Maryland courts will apply a four-part test to determine if the second parent is a de facto parent, and therefore eligible for custody. De facto parents will also be responsible for paying child support.

The issues raised here can affect gay and lesbian couples, but they can also affect unmarried, heterosexual couples. Your best chances for a successful outcome is to work with an experienced Annapolis divorce lawyer who has experience working with same-sex couples.

If you are part of a same-sex couple and you are considering divorce, the Annapolis divorce attorneys at Cynthia H. Clark & Associates, LLC are here to represent your interests. We fight for the best possible outcome in your case. You may request a consultation today by calling 410.921.2422 or completing our contact form.

Getting divorced can cause difficulties for all parties involved. If you are entering into a divorce as a member of the U.S. military (active or retired), you will likely face additional challenges and considerations. You may be stationed overseas when you are served with divorce papers, or may be in the process of moving to a different U.S. base. You may have gotten married after already accruing part of your pension. Your duty and obligations to your country during this time may prevent you from properly responding to whatever documentation you receive.

Military divorces present specific issues involving:

• The timeframe of the divorce proceedings
• The jurisdiction over the divorce
• How military pensions and other service related benefits are divided between the spouses
• Special considerations in regard to child support and to the Parenting Plan

Today, we want to look specifically at the Servicemembers Civil Relief Act (SCRA) and how that Act may impact your divorce proceedings when you are on active duty.

Rights under the Servicemembers Civil Relief Act

In normal civil divorce proceedings in Maryland, when one spouse serves divorce papers to the other spouse, the spouse receiving the divorce papers must return a formal answer within a prescribed number of days. Once this is done, the court proceeds with the next stages. However, if one of the spouses is on active duty, the SCRA can affect those timelines.

Under the SCRA, a servicemember who has been called to active-duty service for at least 30 days can issue a written request to put divorce proceedings on hold if his or her duties prevent a proper response to court orders, or conflict with his or her timely participation in court proceedings. This hold, called a “stay,” is 90 days. Courts may grant extensions of 60 additional days under some circumstances.

Why on-base attorneys cannot help you

Every branch of the military has lawyers, who are usually located on the majority of military bases. These attorneys cannot help you with your divorce proceedings: divorce is a personal matter, and their main concern is with legal issues affecting you as a servicemember. This is why it is critical that you work with a lawyer who has experience representing clients who have served in some branch of the military, and clients whose partners have served. Furthermore, you want an attorney who focuses her practice on divorce and other family law matters. The lawyers you meet on-base are not divorce attorneys, may not be licensed to practice in your state, and may not be able to offer you the best advice for your needs.

At Cynthia H. Clark & Associates, LLC, we are proud to represent clients who are serving in all branches of the military. We make sure your questions are answered and your rights are protected. To arrange a free consultation, call our law office today in Annapolis at 410.921.2422 or complete our contact form.

The divorce process can be expensive. Many couples may be searching for ways to save money, especially if they generally agree on the terms of the split. If you and your spouse are one of those couples, you might be wondering if it is a practical idea to use the same divorce attorney.

The short answer is “No.”

If you hire a lawyer to represent you in your divorce, rules of ethics and professional conduct prohibit him or her from representing your spouse as well – as your spouse’s interests are legally in direct conflict with yours. Even if it were allowed, it is a bad idea. Your attorney should be looking out for your best interests, and your best interests alone.

Five ways to expedite your divorce planning

If you are genuinely concerned about the costs associated with your case, there are some steps you can take to make the process move more efficiently.

1. Sit down with your spouse before seeking legal counsel. If you and your spouse are on amicable enough terms to consider using the same attorney, the chances are good that you can sit for a few hours and talk about which items you want to keep, which you will sell, and how you would like to proceed with your Parenting Plan, if you have minor children. The more information you bring to the table, the less time your lawyers will need to spend negotiating on your behalf.
2. Consider working with a mediator. If you and your spouse cannot agree to all of the terms of your divorce, consider working with a third-party mediator to help you work through the more difficult negotiations. While we would not recommend doing this without having first retained counsel, should you go this route, make sure it is part of the plan to present the findings to your individual attorneys once mediation is complete.
3. Work with outside experts if you need help. It may seem counterintuitive, but working with financial experts to get an accurate assessment of your assets, holdings and debts can actually save you time and money. Our firm regularly employs these professionals to assist our clients, but you can work with your financial adviser on your own.
4. Be honest during every part of the divorce planning process. If you exchange information freely and willingly, you can save both time and money by avoiding a lengthy discovery process.
5. File under grounds of mutual consent. Once you are ready to move forward, you can file for mutual consent, which eliminates the 12-month waiting period. This option is only available to you if you and your spouse work out every detail of your divorce, including alimony, asset division and the Parenting Plan, if you have minor children.

If you are going through a divorce, talk to the attorneys at Cynthia H. Clark & Associates, LLC. We can answer your questions about mediation and divorce agreements, and any other family law concerns you may have. To reserve a consultation at our office in Annapolis, please call 410.921.2422 or fill out our contact form.

The state of Maryland recently passed legislation that allows married couples with children to divorce with the mutual consent of both parties.

Before 2015, to receive a no-fault divorce here in Maryland, every couple had to prove that they had lived in separate residences for 12 continuous months, with no sexual relations. “No-fault” means that neither party has to prove one caused the end of the marriage, but that they mutually seek to end the union.

However, many separated couples have found this one-year separation period quite difficult. It can cause financial hardship as well as emotional and psychological stress, as the separation and divorce period can drag on for well over 12 months.

Mutual consent divorce in Annapolis

Then, in October 2015, the Maryland legislature created “mutual consent divorce” so spouses could obtain an absolute divorce. An “absolute divorce” in Maryland is a legal action that completely dissolves the marriage. A “limited divorce,” on the other hand, is a legal status that divorcing spouses can obtain while they are separated, but still married.

The mutual consent divorce allows spouses to avoid the previous 12-month separation period. They simply must file a divorce agreement (created and agreed-upon mutually) that resolves all divorce issues up front. The divorcing spouses file the document, appear in court, and an absolute divorce is granted without having to wait a year.

The rub, however, was that this 2015 legislation was only available for couples without children.

With this recent legislation, however, this has changed. In a recent session, lawmakers in both the House and Senate passed a bill (SB 0120) allowing courts to grant an absolute divorce on mutual consent even if the couple has children.

The new legislation will go into effect in October 2018. When these types of cases are filed with the court, the settlement agreements must include the following:

• How alimony/spousal support will be handled
• Agreement on division of property and assets
• Details on custody agreements and child support

Lastly, both parties must be present at the divorce hearing and they must be in complete agreement on all issues.

The passage of this bill gives couples with children the same opportunities to move on with their lives more quickly to reach to a “new normal,” and allow their children more time to emotionally adjust.

If you are thinking about divorce, or are in the beginning stages of seeking a divorce, the Annapolis divorce attorneys at Cynthia H. Clark & Associates, LLC can help. We advocate only for you and the best interests of your family, and can answer any questions or concerns you may have about the divorce process. To reserve a consultation at our office, please call 410.921.2422 or fill out our contact form.

A lot of couples live together before they get married. Some of them will share bank accounts, or take out loans with both of their names on them. In some cases, one person may financially support the other while he or she goes through school or a career change. But what rights do you have if your husband- or bride-to-be ends the relationship?

The sad truth is, very few. Even if you and your fiancé/fiancée lived together for years, Maryland does not recognize common law marriage, which means there is no official co-mingling of debts or assets, and no recourse if you financially support your partner, who then turns around and breaks up with you. If you both have your name on a car loan or a rental agreement, then you are both responsible for making those payments (unless you can have your name removed), but anything you put into the relationship financially is gone, and there is nothing you can do to recover it. Any “gifts” you gave him or her – and unless there is documentation proving a loan, Maryland will consider them gifts – are his or hers to keep.

That includes payments you made for education, rent, dinner, utilities: the works. Legally, they were not your sole responsibility (or, in some cases, even partially your responsibility, such as with a school loan), and as such, your payments are gifts, which means you have no legal standing to ask for them back.

What about the engagement ring?

This, of course, is the big question: if the relationship ends, who keeps the ring? There are no laws on the books that mandate the ring must be returned to the gifter in the event that the relationship ends before the wedding.

That does not mean the recipient always keeps the ring. Some people may not want to keep it; other couples may choose to sell the ring and split the proceeds. (The Emily Post Institute told USA Today that if the ring is an heirloom, or holds sentimental value to the giver, it is good manners to return it.)

Protecting yourself before you get married

If you and your spouse-to-be live together before you get married, there are a few things you can do to protect yourself in case the relationship ends before you get married:

1. Keep separate, individual bank accounts. Some couples may choose to set up a joint account into which each person contributes money for bills or household-related items. If you go this route, make sure no other money is deposited into that account.
2. Do not co-sign for bank loans, car loans or credit cards. It will make things easier if you decide to go your separate ways.
3. Document any money that is loaned to the other person. If you loan your partner money, make sure it is clearly a loan. It might be worth considering having the document notarized.
4. Have an honest discussion about your finances. Money problems often lead to break ups. Make sure you and your partner are open and honest about your debts, your assets, and what you both think you can contribute to the relationship financially. It does not have to be 50/50, but both of you need to go in with your eyes open.

At Cynthia H. Clark & Associates, LLC, our experienced Annapolis divorce lawyers offer comprehensive services in all family law matters. To reserve a consultation at our office, please call 410.921.2422 or fill out our contact form.