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Is My Business Considered Marital Property in Maryland?
In Maryland, the value of a business interest acquired during the marriage is considered marital property, even if it is owned and operated by only one spouse.
Upon divorce, the Court must determine the "fair market value" of a spouse's business interest, which is what a willing buyer would pay a willing seller, neither being under the compulsion to act and both having reasonable knowledge of all relevant facts.
However, a spouse's "personal goodwill" in the business is their non-marital property, not subject to equitable distribution by the Court. "Personal goodwill" is the part the business value which is directly attributable to the reputation and success of the spouse owner.
Business valuation in divorce is a complex issue in divorce cases, often requiring forensic analysis of business records and expert testimony.
Under Maryland law, child support is determined based on the Income Shares Model. Therefore the monthly support amount for the child is proportionally shared between the two parents based on their incomes, past W-2s, and child support worksheets. One parent will then pay the other parent his or her share of child support. Considerations will also be made for existing debt, property settlement, mortgages, other children or any other financial considerations.
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