Divorce & Finance
When going through a divorce, there are many key factors spouses need to be aware and informed of before settlement in order to ensure an equitable agreement. Many spouses approaching divorce think that this process is only a legal matter when in fact the process involves:
Finances tend to be the most contested
In divorce, usually the most contested or argued about points revolve around finances as spouses are scared for their financial security after divorce. Here at Synergy Divorce Solutions, we serve as a financial expert in your divorce process. We visually show our clients through financial analysis and plans what an equitable settlement agreement would be considering their specific situation. When people can see visually that they are receiving an equitable agreement, this gives spouses the confidence to settle and move on with their lives, ending this process.
Address Your Questions
Maryland is an Equitable Distribution State
When speaking of the financial component of divorce in the state of Maryland, we live in an “Equitable Distribution State” meaning that a 50%/50% split of marital assets and liabilities is not what deems a settlement agreement equitable. Rather you have to look at income, budget, assets and liabilities to come to an equitable distribution. That said, the most common questions in divorce are:
How do I know I am receiving an equitable settlement?
How much money do I need to be ok moving forward?
To answer that question, you will need to know where your cash flow will be after divorce considering income, budget, taxes and inflation. This is why it is imperative to hire a financial professional in your divorce.
Know your Tax Liabilities
Not only do you have to take your budget into account, but income, assets & liabilities are equally important. You want to make sure that you know what your monthly income is NET after taxes, in order to properly calculate if you are able to support your cost of living or not. You will also need to make sure that the retirement accounts or investment accounts you receive are net of taxes, so you do not end up with a huge tax liability.
Understand your Financial Position in a Divorce Before it is Too Late
With all of this being said, even though divorce is technically a legal process, most of the contested issues of this process revolve around the finances! This is why it is SO important to make sure you have a financial professional involved in your divorce. To make sure that you are going to be financially secure BEFORE you sign your settlement. Because once you sign the settlement without reviewing the financial implications, it is already too late!