Law Offices of Jonathan Gladstone
Free Consultations 410-777-8228
Effective Representation for Complex Issues

The financial impacts of divorce

When people plan to divorce in Maryland, it is important for them to understand how their finances may be affected by their divorces. Considering money-related factors in divorce can help spouses to plan accordingly.

Most people are aware that their marital assets will be divided in their divorces. They will need to determine such things as what they will do with their marital homes as well as the rest of their marital property. They may need to divide retirement accounts, pensions and other assets. Maryland is an equitable distribution state, which means that marital property is divided according to what the court says is fair rather than each spouse getting half of the assets.

If couples have children, child custody, visitation and child support will need to be determined. If one spouse earns substantially more than the other spouse, spousal support may also be at issue. People will need to take into account the tax implications involved with taking certain assets. For instance, it is important to be aware that spousal support is taxable as income and deductible by the payer. Child support is not taxed and may not be deducted from the payer's taxes. Finally, people need to decide how to divide their debts in their divorces.

Looking at the financial situation objectively during a divorce is crucial. People might want to get help from a family law attorney. A lawyer may be able to explain what types of impact a person's divorce may have on their future finances. He or she may work to make certain that the client receives a fair settlement amount. An attorney might work to make certain that his or her client will maintain his or her ability to retire on time.

No Comments

Leave a comment
Comment Information