Those who decide to get a divorce in Maryland often undergo a great deal of emotional turmoil, which is understandable. Ending a marriage is not always an easy choice, even if everyone involved agrees that it is for the best. Since this is normally a very emotionally-charged life event, some people may make practical mistakes that cost them money in the long run. Here are several points one should consider to achieve the best financial standing possible post-divorce.
One of the first things a person getting a divorce should do is determine a plan for finances after divorce. This means considering financial goals in relation to income and expenses. This may also mean adjusting one’s lifestyle, which can be particularly difficult for those spouses who may have once been hands-off with the family finances.
There are other, more long-term financial implications that may be intimidating to some, but they are no less important. Depending on a person’s complete financial picture, there may be unconsidered tax implications. This may be especially important in divorces that include alimony or a division of nonmonetary assets as both have an impact on taxes that may not be to one’s advantage.
Retirement accounts and benefits need to factored into a person’s finances. Some people don’t realize that they may still be able to claim Social Security based on their former spouse’s work record, which may leave potential income on the table. This is also a crucial time to make sure that one’s estate plan has proper beneficiary designations, as leaving one’s ex-spouse as beneficiary may have undesired results.
The other financial point to consider in divorce is whether matters may be solved amicably or will need to be resolved at trial. In either scenario, the best investment may be to work with a family law attorney here in Maryland. An attorney can explain the financial possibilities available to someone entering a divorce and ensure that they are treated with fairness at every stage of the process.