As most Maryland parents might agree, raising children in 2021 and beyond is expensive. Whether you have one, two, three or more children, you no doubt have encountered challenges at some point when it comes to providing for your children’s financial needs. If you’re one of many parents who have filed for divorce this year, you might be especially concerned about finances.
There are tax implications in a divorce
Once you file a petition to divorce, you activate a series of events that include the need to resolve numerous issues pertaining to your children. An important topic to discuss as part of your settlement is taxes. Only one parent may claim your children as dependents on a tax return, so you and your ex must determine which of you will do so.
Maryland is an equitable property state
Division of marital property is another primary topic regarding finances in a divorce. Maryland, like most other states, operates under equitable property rules, which means that you and your former spouse must each receive a fair portion of all marital property. It does not mean, however, that the division must be a 50/50 split.
In fact, you might be able to barter the value of a specific asset that is important, trading it off with another asset. For instance, you might want to keep living in your marital home with your children. You can request that your ex accept other assets of similar value as a fair trade.
Hiding assets in a divorce is a form of perjury
Protecting your financial interests in a divorce isn’t always easy, especially if your ex tries to hide assets. Maryland law requires each spouse to fully disclose all assets and liabilities. If your ex intentionally understates the value of an asset or tries to hide money by making a false loan or overpaying on a credit card balance, it amounts to lying to the court, which is perjury.
If you suspect that you have a hidden asset problem on your hands, you can immediately inform the court. The judge overseeing your case will examine the evidence and determine whether your ex should be held in contempt.
Financial matters and children’s best interests
When there are children involved in a divorce, the court bases all of its decisions regarding child custody, child support and other financial matters on what is best for your kids. You’re entitled to a fair settlement and to be able to provide for your children’s needs as you move on in life together after divorce.
It’s always best to make sure that you clearly understand the Maryland laws and regulations that govern such matters before you agree to sign any type of settlement documents.