When getting divorced, spouses in Maryland who may end up paying spousal support to their former partners will need to understand the potential ramifications of this agreement. The financial implications of paying alimony is about a lot more than how much money goes out of one's bank account every month. As with other elements of a divorce agreement, there are tax consequences associated with these payments.
If you think your marriage is soon to be part of the 50-percent divorce rate in Maryland, the thought may have crossed your mind to start stashing money in a secret account. You should know that it is, in fact, illegal to hide assets from a divorcing spouse. That does not mean the same thought has not crossed the mind of your partner, however.
Many of the Rockville clients that we on the team here at Steven J. Gaba have worked with in the past come into their divorce proceedings convinced that they know exactly which of their assets their soon-to-be ex-spouses cannot touch. Many are unpleasantly surprised to learn that several of those they view as being separate assets are actually subject to property division. The asset that typically causes the most shock is a 401(k). You work very hard to earn assets to allocate to your 401(k) account without contributions from your spouse. Why then would it be considered marital property?
Every divorcing couple in Maryland will allocate a significant volume of time and attention on the division of marital wealth. This is an important aspect of any divorce, as the outcome will shape the financial future of both parties for many years to come. For couples that share significant levels of wealth, the process of reaching a settlement as to the division of those assets can be difficult. Fortunately, there are professionals who can assist in determining the true value of various assets, which is the first step in attaining a fair settlement.