Facing the end of a marriage can bring about many anxieties. Financial concerns often rise to the top of the list. Divorce can take a toll on your finances if you do not handle the process well. But with a plan, you can protect your assets and secure your financial future.
Understanding Maryland’s laws and learning how to navigate them can be the key to a fair settlement. With the right approach and a clear head, you can protect your finances during your divorce.
Understanding marital property
Maryland law considers property acquired during the marriage as marital property. This property will be subject to equitable distribution in a divorce. Assets you had before your marriage or acquired as gifts or inheritance remain your separate property.
Keeping thorough records
Keeping accurate and complete financial records helps establish what you owned before the marriage. Receipts, bank statements, property deeds and other financial documents can help substantiate your claims for separate property.
Staying current with bills
While going through a divorce, stay up-to-date with all your bills. Outstanding debts could damage your credit score. Paying bills on time safeguards your credit rating, which you will need to get housing, loans and other needs after your divorce.
Setting up separate accounts
To prevent confusion and protect your finances, consider setting up separate bank and credit card accounts as soon as you decide to divorce. This action will help you manage your money and avoid disputes over spending during the divorce process.
Considering the tax implications
Tax consequences can affect your finances during and after divorce. Understand how splitting assets, child support, alimony and other aspects of your divorce can impact your tax liabilities.
Planning for future needs
Think about your long-term financial goals. Consider how you will fund your retirement, support any children, pay for housing and meet other future expenses.
Securing your financial future during a Maryland divorce may seem daunting. However, by following these tips you can protect your assets and manage your financial future wisely.