Thursday, May 31, 2007
When Dissipation Ain't
A very interesting case in Maryland Divorce law that addressed among other issues the matter of a party using marital property, in this case the husband's 401k to pay his counsel fees. As events unfolded in this case the husband actually used the 401k proceeds to pay his counsel fees and a portion of his wife's counsel fees as ordered by the court. The Maryland court determined that the use of marital property to pay reasonable and necessary counsel fees is not a dissipation of marital assets. As such tell your client from now on to stop paying you with their credit cards and start paying you from marital assets. The net effect is the other spouse is also paying you. See Allison v. Allison 160 Md.App. 331, 864 A.2d 191.
Labels:
Marital Property
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