Divorce Wealth Planning Team Delivers Presentation at AAML Maryland Event

On Friday, October 25, 2024, Margo Cook (President, Wealth and Engagement Planning), Jason Wood (Executive Vice President and Chief Investment Officer), and John Dame (General Counsel) led a presentation on financial abuse and complex assets at the American Academy of Matrimonial Lawyers (AAML) Maryland Conference.

John and Margo informed attending attorneys and judges about a newly enacted District of Columbia statute that includes “financial abuse” as a factor for the court to consider when equitably dividing marital property and determining alimony awards. Citing recent academic studies, the team clarified the distinction between financial control and financial abuse, identifying when control may escalate to abuse. Drawing on his experience as a former family law attorney, John discussed the definition courts are likely to adopt when interpreting “financial abuse.” For more on financial abuse, please subscribe to our newsletter.

"We believe that it is a necessity for attorneys to learn about financial and economic abuse, as these concepts are a growing trend in academics, sure to have affects on the law," said John. "Our work in studying this type of abuse makes clear - there are no two circumstances that are alike - but there are factors that attorneys and experts must review in every divorce case. These include coercion or manipulation in obtaining the control over the financial assets in the marriage, hiding of financial information from the victim, and making the victim ask the controlling spouse for funds. If any of these factors are present in a divorce case, the attorney or expert must take a deeper dive to determine if financial or economic abuse occurred."

After the discussion of financial abuse, Jason then highlighted the rise of complex private investments—such as private equity, hedge funds, venture capital, and private credit—underscoring the growing market size and key considerations for legal professionals, including liquidity and business risks. “By 2023, nearly $13 trillion was invested in private markets,” Jason noted. “Private markets have grown at an average annual rate of approximately 20% since 2018. These assets are—or soon will be—a common feature in the investment portfolios of divorcing clients. It’s therefore essential for attorneys to understand both the benefits and risks of these investments, as well as how to approach them from a valuation standpoint.”

Rothschild Capital Partners is available to present at your conference or event on these topics and more. Please reach out via connect@rothcap.com if you wish to invite us to speak.

_{*Rothschild Capital Partners relied upon data and information from the research of Adrienne E. Adams, Megan R. Greeson, Angela K. Littwin, and McKenzie Javorka, authors of the Scale of Economic Abuse in Psychology of Violence, a bimonthly journal published by the American Psychological Association.}

_{*Rothschild Capital Partners also relied upon data and information from McKinsey Global Private Markets Review 2024: Private markets in a slower era.}

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