There are a variety of factors to consider when it comes to splitting up with your spouse, such as the financial impact and how this move may affect your kids (and even your grandchildren). The emotional toll of divorce can be tough, and the financial impact of a divorce should not be overlooked, either—especially for those who have a high net worth. Moreover, more and more people are ending their marriages at an older age, which can bring up additional concerns. However, by taking the correct approach to your divorce, a brighter future may be around the corner.
If you and your spouse are a high-asset Maryland couple preparing for a divorce, you may begin to wonder if (s)he is trying to hide marital assets from you so as to better his or her financial position when it comes time to construct the property settlement agreement.
The leading cause of stress in Maryland relationships is money, so it would seem to follow that the better off financially you are, the less likely you are to divorce. However, according to CNBC, experts observe that when an economic downturn occurs and couples are more likely to have financial struggles, the divorce rate decreases, only to rise again once the economy is on the upswing. Due to the financial aspects of divorce, couples are unwilling to add a destabilizing factor to an already uncertain economic situation, but once the financial situation improves, couples may find themselves on firmer financial footing, and divorce becomes a viable option.
A great deal of time can lapse from the moment you and your spouse choose to separate to the date you are actually granted a divorce. Unresolved disputes, multiple complex issues to work through and even the availability of the court may cause your proceedings to be drawn out for months or even years. During that time, both you and your soon-to-be ex-spouse will no doubt begin to take steps towards moving on with your lives in Rockville. What happens, then, to the value of your marital assets during that time?
If you are getting ready for divorce as someone with a high net worth, there may be a variety of special considerations related to your circumstances that you will want to explore. For example, you may need to pay particular attention to some of the financial aspects of the divorce process, such as the division of your assets. Not only that, but you may have to work through other hurdles, especially during the holiday season. Some people want to move forward with their divorce regardless of the time of year, which is fine. However, it is always smart to prepare.
A great deal of hard work no doubt went into establishing your business in Rockville. The same might be said of your marriage. Your concern for the former will doubt then be affected by the dissolution of the latter. You may question why your soon-to-be ex-spouse is able to profit off of your business when you were the one to establish it. Yet it should be remembered that per Section 8-201 of the Maryland Code detailing Property Disposition in Divorce and Annulment, a marital asset is defined as any that you acquire while married. While your business as a whole might not meet this criteria, any interest it gained while married would.
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.