Working out marital property division during a divorce is challenging. Here are some helpful tips to keep in mind:

1. A couple can come to an agreement as to how to share the marital debt and who is responsible to make the payments on it. This, however, does not mean that the non-paying party is off the hook for that debt. If you are listed on the account and your ex fails to make a payment, the creditor can hold you liable and engage in debt collection against you. Hence, it is extremely important that you confirm with your ex that they are making the monthly payments until that debt is fully paid off.

2. If you shared a marital home and one spouse agrees to let the other keep the marital home, you are not off the hook until you refinance and get your name off the joint mortgage. Some parties assume that signing a quit claim deed gets them off the debt, but it does not! You are still financially responsible to the lender until your name is completely off the mortgage.

3. Any missed payments on your car note and car insurance that is jointly titled in your name will also have an adverse affect on your credit. Make sure you retitle your vehicles and car insurance policies.

4. Any foreclosure actions may affect both parties’ credit and have long-term financial challenges.

It is important to take the time to analyze your financial situation before deciding on how to handle your marital property division. If you need assistance, please call us (443) 741-2567 and we would be happy to meet with you to answer all of your questions.

One of the major complications that parties in a divorce often run into is what do to with their company during a divorce. The first thing one must do is determine if they want to maintain ownership of their business or whether they want to sell it. In a divorce, a business valuation will need to be performed to determine what the company is worth. This process can take some time. A financial breakdown of your company’s past and current assets will need to be provided. Additionally, the business will be assessed based on past revenue and the future revenue it will generate.

Once your business is valued, you have several options to choose from. First, you and your spouse can agree to sell the business and then divide the proceeds. On the other hand, you can pay your spouse their fair share of the business and buy them out of the company completely. Alternatively, some parties may agree to continue their working relationship and maintain running their business together even if they are divorcing.

A business valuation can help you decide what to do with your business and make smart decisions about your future. If you have any questions about the divorce process and how it impacts your business, please call us at (443) 741-2567 and we would be happy to meet with you to discuss your case.

When contemplating a divorce, many people are not only facing emotional stress but also worry about their financial well-being. It is extremely important to think about your financial situation and try to plan ahead as much as you can prior to filing for divorce. Some helpful tips in doing so may include:

1. Creating a list of your financial assets. These may include cash, saving accounts, stocks, bonds, and any real estate investments. You should also consider whether some assets have tax consequences if you access them early. For example, retirement assets generally carry a penalty on early distribution as well as you having to pay the income tax on them.

2. Create a list of your debts. Any debt that was accumulated during the marriage will be considered marital debt and both spouses are obligated to pay the debt. A judgment of absolute divorce does not terminate your financial obligation to the creditor. Often times, parties are able to come to an agreement as to who will be responsible for making payments towards the debt.

3. Taxes. You should have a copy of your prior years' tax filings and consider your tax implications as to whether you should still file jointly while separated or file as single. You should consult with a CPA to learn more about your options before reaching an agreement with your spouse about your taxes. If you have children, you should also consider a head of household filing status if you are the custodial parent.

Divorcing couples often need to make hard yet sound financial decisions. Unless you are changing jobs and earning a higher salary, it is very likely that you will have the same amount of income but more expenses when you are divorcing. It is important to be realistic about your future and reach a meaningful agreement on the division of marital assets/debts when appropriate. Of course, not everyone is able to reach a mutual agreement and in that situation, the court will issue a court order after a trial to determine how the marital assets/debts should be divided. If you have any questions, please feel free to reach us at (443) 741-2567.