#FamilyFriday: Marital v. Non-Marital Property

When couples get divorced they are required to identify marital property and non-marital property.  Many individuals don’t know what makes property marital and therefore, how they may unintentionally make a non-marital asset marital. 

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When couples get divorced they are required to identify marital property and non-marital property.  Many individuals don’t know what makes property marital and therefore, how they may unintentionally make a non-marital asset marital.  This week’s #FamilyFriday article defines marital and non-marital property and offers a few tips to protect your non-marital property.

Maryland defines marital property as any property – no matter how titled – acquired by 1 or both parties during the marriage.  Individuals mistakenly believe that if the property, personal or real estate, is in their sole name it means that it is not marital – not true.  By virtue of being married, what’s theirs is yours and what’s yours is theirs.

As logic flows, non-marital property is any property which was acquired prior to marriage.  There are also some ways to acquire non-marital property during your marriage.  These include an inheritance, a gift from a third person, an agreement between you and your spouse stating what is or is not marital, or any monies which were received through any of the above means.  For example, if your parent passes and leaves you $10,000.00.  You can put that $10,000.00 into a bank account in your sole name and still have that remain non-marital property.

How does non-marital property then become marital property?  When you comingle the property.  Take the example of receiving a $10,000 inheritance described above.  Say you decide to transfer your inheritance into the joint account.  Many would think that $10,000 of the balance of their joint account would remain non-marital since it was clearly from their inheritance.  Wrong.  The moment those monies were comingled, all of that money became marital property.

So, what do you do?  One of two things: (1) keep non-marital property separate or (2) enter into a prenuptial or postnuptial agreement and define what each of you will maintain as non-marital property.  You and your spouse can enter an agreement and list what property will be marital and what will not.  That may include real estate, jewelry, bank accounts, etc.  Or, you can keep it simple and keep your non-marital money separate.

Call ERA Law Group, LLC today at (410) 919-1790 to learn how to protect your non-marital property!

#TuesdayTips – Domestic Violence: Protective Order or Peace Order?

Unfortunately, it is likely that you or someone you know has been a victim of abuse which may or should have resulted in a Protective Order or Peace Order.   On this week’s #TuesdayTips article the attorneys at ERA Law Group, LLC want to explain the difference between Protective Orders and Peace Orders in order to help victims best protect themselves as quickly as possible.

Unfortunately, it is likely that you or someone you know has been a victim of abuse which may or should have resulted in a Protective Order or Peace Order.   On this week’s #TuesdayTips article the attorneys at ERA Law Group, LLC want to explain the difference between Protective Orders and Peace Orders in order to help victims best protect themselves as quickly as possible.

A Protective Order is ordered by a judge and instructs the abuser to stop committing a specific act or set of acts against others.  To be eligible for a protective order you must have fall within one of the following relationship categories: (a) current or former spouse, (b) residing together in an intimate relationship for at least 90 days within the year of filing, (c) related by blood, marriage or adoption, (d) have a parent-child or stepparent-stepchild relationship and resided together for at least 90 days within the year of filing, (e) have a caretaker-vulnerable adult relationship, (f) be parents of a child together, and/or (g) have had a sexual relationship within a year of filing.

Unlike a Protective Order, a Peace Order is a form of protection for anyone who is experiencing some sort of problem with an individual such as a neighbor, stranger, etc.  When filing a Peace Order the relationship between the parties is not a factor.

What a Judge can and cannot order also varies based on the type of Order requested.  In both cases, a Judge can order the abuser to stop abusing you and to stay away.  In the case of a Peace Order, a Judge can also order counseling, mediation, and for the abuser to pay the court costs and filing fees.  Because a Protective Order involves more intimate relationships, a Judge can also impose more restrictions and make additional awards.  For example, a Protective Order can award temporary custody or visitation, emergency family maintenance (or, financial support) to be paid by the abuser, award possession of any pet, award use and possession of a jointly titled car, etc.  It can also order the abuser to stay out of the marital home, stay away from your child’s school, and to stay away from and not contact family members.

We’re here to help.  If you or someone you know is suffering from abuse and needs help, contact ERA Law Group, LLC today at (410) 919-1790.

#FamilyFriday – How is Child Support Calculated?

Frequently parents are confused by the child support calculation when considering their other bills and obligations.  What many don’t realize is that in nearly all scenarios the amount of child support ordered is determined by a calculator and factors such as “I have student loans” or “I have rent to pay” don’t necessarily matter.

On this week’s #FamilyFriday article, the attorneys’ at ERA Law Group, LLC want to explain exactly how child support is calculated.  Frequently parents are confused by the child support calculation when considering their other bills and obligations.  What many don’t realize is that in nearly all scenarios the amount of child support ordered is determined by a calculator and factors such as “I have student loans” or “I have rent to pay” don’t necessarily matter.

Maryland uses a Child Support Guideline formula to calculate child support.  Both parents are required to complete a Financial Statement which outlines the various components of that formula.  First, the parents identify their actual monthly income.  This would include salary, Social Security benefits, alimony, etc.  Second, the parents then identify earlier child support or alimony obligations – per Court Order – which will reduce their actual monthly income.  This is called their adjusted monthly income.  Third, if there are any work related child care expenses, health insurance expenses, or extraordinary medical expenses such as braces, those will also be identified by both parents.

Once both parties’ have identified the above, the formula then predicts what percentage of the parents combined income would have been attributed to the child(ren) had they continued living together.  This number is then used to determine the “basic child support obligation.”  The additional factors such as work-related child care and health insurance are incorporated to determine the “total child support obligation” that the non-custodial parent would be responsible for paying to the custodial parent.  Some exceptions exist, such as, if a parent receives Social Security Income, food stamps, or transitional services which would not be considered actual monthly income.

If you or a loved one need help obtaining child support for your children, call ERA Law Group today at (410) 919-1790 or visit our website at www.eralawgroup.com!

#FamilyFriday – Contempt

The very purpose of receiving a Court Order is to once and – hopefully – for all settle a dispute between the parties.  Unfortunately, that doesn’t always happen. 

On this week’s #FamilyFriday article, the attorneys at ERA Law Group, LLC are addressing individuals who have fallen victim to an ex-spouse or parent who refuses to abide by the Court’s Order.  You’ve gotten divorced or filed suit for custody and support, the Judge made their determination and you received a Court Order outlining that decision.  What happens when one person decides not to listen?

Contempt is when one party decides to act in contradiction of the Court or Court Order.  The very purpose of receiving a Court Order is to once and – hopefully – for all settle a dispute between the parties.  Unfortunately, that doesn’t always happen.  That intentional decision to ignore or act inconsistently with a Court Order is important because it qualifies the contempt as willful.  Being in willful contempt of a Court Order can have serious ramifications.  The contempt-ing party may be subject to a fine, attorney fees, and in serious cases, jail.

The contempt-ing party also creates various consequences for the other party.  For example, say a provision of the Order requires Parent A to pay one half of private school tuition to the school directly and Parent A refuses to pay.  If Parent A refuses to pay their share of the child’s private tuition than Parent B may have to come out-of-pocket for the balance and, if they can’t, their child may not be able to return the following year.  These and similar situations wreak havoc – financially and emotionally – for the party who correctly abides by the Court Order.

If you are being forced to endure the consequences of someone who has decided not to adhere to your Court Order, call your advocates at ERA Law Group, LLC today at (443) 906-3566!

#FamilyFriday – Prenuptial Agreements: Why You Should Get One!

There are two ways to dissolve a marriage: divorce and death. Prenuptial agreements help in making the dissolution as easy as possible.

There is a misconceived notion that asking for a prenuptial agreement or discussing it in some way implies distrust or concern over your relationship.  This isn’t true!  There are a significant number of benefits to obtaining a prenuptial agreement that the attorneys at ERA Law Group, LLC want to bring to your attention for this week’s #FamilyFriday article!

Marriage is both a romantic and business relationship.  With very few exceptions nearly everything is or becomes marital.  As such, nearly everything can become subject of costly litigation in the event of divorce or death.  A well drafted and all-inclusive premarital agreement will limit many of these issues.  For example, the agreement will identify what is and is not marital property, each parties’ rights in the event of death or divorce, predetermine rights and obligations for spousal support, inheritance, and more.  In addition, the agreement will have a complete financial disclosure including each spouses’ assets, liabilities, and income.

There are two ways to dissolve a marriage: divorce and death.  Prenuptial agreements help in making the dissolution as easy as possible.  Prospective spouses should consider whether they want to be on the hook for their partner’s debt in the event of divorce or marriage?  Whether they want their spouse from a second marriage to inherit more than their children from their first marriage?  Whether they want their private business to be impacted in the event of divorce or death?

Why wait?  Protect you, your spouse, and your family no matter what life throws at you.  Call ERA Law Group, LLC today at (443) 906-3566!

#FamilyFriday – Adoption

Adoption is the legal process of creating a parent and child relationship and can take many forms.

For this #FamilyFriday article, the attorneys at ERA Law Group, LLC want to talk about adoption.  Adoption is the legal process of creating a parent and child relationship.  Adoption can take place in many forms.  For example, a stepparent may be adopting their partner’s child or perhaps grandparents are looking to adopt a grandchild.  Many people tend to think of adoption involving a minor child but don’t know that adults can also be adopted.  Establishing the parent/child relationship is important on an emotional level but also serves a legal and financial purpose.  An adopted child can receive state and federal benefits of their parents that without the adoption only a biological child would be entitled to receive.

The process of adopting, unlike many other court appearances, is usually joyous.  After gathering the required paperwork and filing the petition, all parties appear before a Judge and celebrate the new and legally recognized family.  There are also adoption proceedings that are contested by a biological parent and don’t carry the same joyous feeling.  In either case, finding an attorney to help you through the legal process is beneficial in creating or maintaining your family.

Taking the necessary steps to protect your family is important and ERA Law Group, LLC wants to help!  Call us today at (443) 906-3566!

#TuesdayTips – When to NOT Do-It-Yourself

Many individuals find themselves in a precarious situation when they decide to handle certain matters without an attorney.  These “cost saving measures” sometimes result in quite a heavy burden.

This week’s #TuesdayTips article comes one day after a recent United States Tax Court ruling in the case of Summers v. Commissioner of Internal Revenue (Docket No. 32259-15).  Many individuals find themselves in a precarious situation when they decide to handle certain matters without an attorney.  These “cost saving measures” sometimes result in quite a heavy burden.

In this specific case, Mr. Summers and his wife divorced amicably and decided to move forward without attorneys.  Pursuant to their agreement, Mr. Summers was to withdraw funds from his IRA and provide them to his wife.  Typically, this is done via a Qualified Domestic Relations Order (QDRO).  Pursuant to 26 U.S. Code Section 72(t)(1), distributions from a QDRO are exempt from the 10% additional tax typically imposed on early distributions.  Unbeknownst to Mr. Summers, taking an early distribution made directly to himself would not qualify for the tax exemption even though he immediately transferred said funds to his wife for her sole benefit.  As a result of an honest mistake, Mr. Summers was forced to suffer the 10% early distribution tax.

Don’t let yourself fall victim to an honest mistake.  The attorneys at ERA Law Group, LLC offer fixed fee QDRO services!  Call us today at (443) 906-3566.