Towson & Bel Air Lawyer Discusses Pre_Divorce Financial Planning
One of the most important considerations that couples who are divorcing should keep in mind involves the family finances. While it is true that there are any number of things to think about during a divorce – who will get the dog, who will have custody of the children, who’s going to get the house – one thing that should be topping that list of concerns is your own personal financial situation.
Just about any Towson divorce lawyer knows that ending a marriage can be extremely stressful and overwhelming. Many aspects of the process can be frustrating, especially if children are involved and/or if there is great wealth at issue. That said, it is crucial for each party to closely review the wealth accumulated during the marriage, ensuring that no stone is left unturned when it comes to dealing with issues related to property division.
Know What You Have..and Keep Track of It
All too often, attorneys handle cases in which the spouses have no clue about their financial situation or marital assets. Such lack of knowledge can lead to major amounts of money being left behind – which could ultimately lead to one spouse enjoying the benefit of an unfair division of property.
Additionally, some spouses simply forget about certain accounts, some of which may be very important to providing substantial assets to a newly-single household. According to a CNBC article, there are a few common mistakes that divorcing couples should avoid making in order to limit the amount of “financial pain” they experience during the divorce.
For instance, one main mistake divorcing couples make involves a failure to keep track of the money. Spouses must look closely at ALL assets that exist, as well as those they expect to get in the future, such as interests in pensions or stock options. Additionally, spouses should be aware that income that is earned prior to the divorce filing (but received after the divorce, such as bonuses and retirement contributions) should be included when considering what amount would be a fair settlement amount.
Divorcing spouses should also keep in mind their tax basis. When attempting to place a value on certain assets, a spouse should make sure to consider whether the asset is taxable or non-taxable. For example, a spouse who is given the family home that is worth $250,000 will be forced to deal with a different set of tax-related implications than a spouse who receives $250,000 years later as a distribution from the other spouse’s retirement account.
A final consideration that couples should note concerns joint accounts and beneficiaries. Maintaining accounts together and keeping one another as beneficiaries on various accounts can prove to be troublesome (and can lead to major liability) once the decision has been made to divorce. We’ve all heard horror stories about one spouse emptying the other spouse’s bank account once the divorce was announced. Couples who share credit cards are encouraged to close those accounts and open new, separate accounts instead.
One way to make certain all assets are accounted for and divided in a fair manner is to create a complete and thorough list of ALL sources of wealth accumulated during the marriage. If you would like to learn more about protecting your assets during the divorce process, you are encouraged to speak with an attorney at the Law Offices of Amar Weisman, LLC as soon as possible.
Call (410) 321-4994 For a Free Consultation With a Mays Chapel & Towson Family Law Firm.
Call The Law Offices of Amar S. Weisman at (410) 321-4994 to schedule a Free Consultation. The Purpose of the consultation is to determine whether you want to retain this law firm as your Baltimore County & Harford County Family Lawyer. If you do wish to proceed, then you must pay a retainer. See Our Policy on Fees and Costs. The family firm is located next to The Circuit Court for Baltimore County, at 1018 Dulaney Valley Road, Towson, MD 21204.
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