Working out marital property division during a divorce is challenging. Here are some helpful tips to keep in mind:

1. A couple can come to an agreement as to how to share the marital debt and who is responsible to make the payments on it. This, however, does not mean that the non-paying party is off the hook for that debt. If you are listed on the account and your ex fails to make a payment, the creditor can hold you liable and engage in debt collection against you. Hence, it is extremely important that you confirm with your ex that they are making the monthly payments until that debt is fully paid off.

2. If you shared a marital home and one spouse agrees to let the other keep the marital home, you are not off the hook until you refinance and get your name off the joint mortgage. Some parties assume that signing a quit claim deed gets them off the debt, but it does not! You are still financially responsible to the lender until your name is completely off the mortgage.

3. Any missed payments on your car note and car insurance that is jointly titled in your name will also have an adverse affect on your credit. Make sure you retitle your vehicles and car insurance policies.

4. Any foreclosure actions may affect both parties’ credit and have long-term financial challenges.

It is important to take the time to analyze your financial situation before deciding on how to handle your marital property division. If you need assistance, please call us (443) 741-2567 and we would be happy to meet with you to answer all of your questions.

One of the major complications that parties in a divorce often run into is what do to with their company during a divorce. The first thing one must do is determine if they want to maintain ownership of their business or whether they want to sell it. In a divorce, a business valuation will need to be performed to determine what the company is worth. This process can take some time. A financial breakdown of your company’s past and current assets will need to be provided. Additionally, the business will be assessed based on past revenue and the future revenue it will generate.

Once your business is valued, you have several options to choose from. First, you and your spouse can agree to sell the business and then divide the proceeds. On the other hand, you can pay your spouse their fair share of the business and buy them out of the company completely. Alternatively, some parties may agree to continue their working relationship and maintain running their business together even if they are divorcing.

A business valuation can help you decide what to do with your business and make smart decisions about your future. If you have any questions about the divorce process and how it impacts your business, please call us at (443) 741-2567 and we would be happy to meet with you to discuss your case.

This week, the Maryland Court of Appeals ruled that de facto parenthood requires both parents’ consent. In other words, an adult involved in a child’s upbringing cannot be considered a de facto parent with a claim for visitation or custody unless both legal parents provide consent and fostered a parent-like relationship with that adult and child.

The term “de facto parent” means “parent in fact” and is used to describe a party, other than a child’s legal parent, i.e., biological or adoptive parent, who claims custody or visitation rights based upon the party’s relationship with a non-biological, non-adopted child. Conover v. Conover, 450 Md. 51, 62 (2016). In Conover, the court outlined the criteria to consider one a de facto parent if they can show that:

1. The legal parent consented to and fostered the relationship between you and the child;

2. You have lived with the child;

3. You perform parental functions for the child to a significant degree, and

4. A parent-child bond has been forged over enough time.

Years later, in E.N. v. T.R., 471 Md. 519 (2020), the Court of Appeals had to decide whether a de facto parent relationship can be created through the fostering and consent of only one legal parent to the formation of such a relationship, without the consent of the second legal parent. The court noted that to declare the existence of de facto parenthood based on consent of only one legal parent and ignore whether second legal parent undermines that parent’s constitutional right to care, custody, and control of parent’s children.

This week’s Court of Appeal’s decision in E.N. v. T.R. raises the burden of meeting the consent element of de facto parenthood. Essentially, to be considered a de facto parent, that individual must have both of the legal parents’ consent and fostering of a parent-like relationship with that adult and child.

If you have any questions about de facto parenthood, please call us at (443) 741-2567 and we would be happy to meet with you to discuss your case.