Are you considering filing for divorce in Maryland? If your spouse has already filed for divorce, you probably have a wide variety of concerns and questions surrounding the division of marital property to issues involving support and child custody. You also may be thinking about the ways in which your financial situation is likely to change as a result of divorce. An article in Forbes discusses some of the major financial issues that can arise during and after a divorce and the necessity of planning for a change in your financial position. Drawing on the article, we want to provide you with information about important financial considerations during and after divorce.
Budgeting for Life After Divorce
One of the most important financial considerations both during and after your divorce is how you will manage a post-divorce budget. For most married couples, divorce means going from sharing costs of a mortgage, bills, and other monthly payments to paying for everything on your salary alone. Even if you are only beginning to contemplate the possibility of divorce, you should create a budget taking into account your monthly bills (and what your bills are likely to be after the divorce), costs of travel and entertainment and the possibility of any major expenditures. The sooner you can begin living on a post-divorce budget you have designed, the easier the financial transition will be once your divorce is finalized.
Documenting the Value of All Marital Property
The process of property division should be a top financial consideration during any divorce. Under Maryland law, marital property is divided according to a theory of equitable distribution. In order to ensure all marital property is classified as it should be so it can be divided equitably between the parties, it is important to have detailed records of all marital property.
As soon as possible, you should begin copying any paperwork concerning the purchase date and sale price of tangible property and information about bank statements and retirement accounts. While it is not common for one of the parties to attempt to hide property, you can avoid any confusion about what assets and debts should be divided in your divorce.
Determining Costs for Retaining the House
If you are hoping to negotiate a property settlement that involves you keeping the house, this is among the most important financial considerations for after your divorce. While it may seem like the best decision at the time, it is necessary to think about the additional costs associated with owning a home. For example, a house can require a lot of upkeep. When you own a home, any unexpected repairs can be costly. In addition, you should consider the cost of taxes on the home when determining whether it makes more sense to stay in the house or sell the property and have the proceeds divided by the court.
Contact a Maryland Divorce Lawyer
Do you have questions or concerns about financial matters during and after a divorce? An experienced and compassionate Maryland divorce lawyer at our firm can speak with you today about your case. Contact the Law Offices of Sandra Guzman-Salvado to learn more about how we can assist you.