Financial Analysis for Divorce and Marital Dissolution in Maryland

By Christopher Skerritt, M.Ed., MBA, Chief of Economic Services · Published · Reviewed

KW Economics prepares financial analyses for divorce and marital dissolution matters venued in Maryland: income available for support, the value of business interests in the marital estate, and the tracing of separate and marital funds, each presented so that either spouse or the court can examine the figures.

A divorce or marital dissolution matter asks what income each spouse has available for support, what the marital assets, including any business interest, are worth for the division of the estate, and which assets are separate rather than marital. Each is answered from the business books, tax returns, and account histories rather than from the tax return alone. Read the full divorce and marital dissolution analysis guide.

Maryland courts and expert standards

Maryland courts now apply a reliability inquiry to all expert testimony: the trial judge asks whether the economist is qualified, whether the method is one the profession has tested and accepted, and whether it was reliably applied to the facts of the case. An economic damages report is written to that standard, with each rate and table traced to its source.

Where these cases are heard

Highest court: Supreme Court of Maryland. Federal venues: D. Md. Court system: courts.state.md.us.

Legal framework

Whether Maryland divides marital property equitably or as community property, which valuation date applies, how income available for support is defined, and how the goodwill of a professional practice is treated are questions of law that counsel confirms; the report presents each finding so it can be applied under either party's position.

How the analysis is built

The same four steps apply to a divorce and marital dissolution matter venued in Maryland; the governing framework in Maryland decides how each finding is applied.

  1. Normalize the business's cash flow for owner compensation, personal expenses paid through the business, related-party dealings, and non-recurring items, listing each adjustment with its source.
  2. Value the business or practice as of the date the governing framework requires, under the income, market, and asset approaches as the facts support, and address personal and enterprise goodwill where the framework distinguishes them.
  3. Determine each spouse's income available for support from the same normalized statements, including distributions, perquisites, and cash flow retained in the business beyond reported salary.
  4. Trace separate property through the account statements step by step, classify commingled funds under the framework counsel identifies, and reduce pensions and deferred compensation to present value with the assumptions stated.

Attorney guides for divorce and marital dissolution cases

Other case types in Maryland

Frequently asked: divorce and marital dissolution cases in Maryland

Which Maryland courts hear divorce and marital dissolution cases?

Divorce and Marital Dissolution cases venued in Maryland are heard in the Circuit Court (General jurisdiction; larger civil cases, felonies, equity, domestic relations). Final appeals run to the Supreme Court of Maryland. Matters within federal jurisdiction proceed in the United States District Court for the District of Maryland.

How does Maryland's family-law framework shape the financial analysis?

Whether Maryland divides marital property equitably or as community property, which valuation date applies, how income available for support is defined, and how the goodwill of a professional practice is treated are questions of law that counsel confirms; the report presents each finding so it can be applied under either party's position. Maryland courts now apply a reliability inquiry to all expert testimony: the trial judge asks whether the economist is qualified, whether the method is one the profession has tested and accepted, and whether it was reliably applied to the facts of the case. An economic damages report is written to that standard, with each rate and table traced to its source.

More questions about divorce and marital dissolution analysis

References

Request a consultation on divorce and marital dissolution cases in Maryland or call (201) 343-0700. Plaintiff and defense counsel.