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.

If you filed a family law case in the circuit court, it is very likely that the parties will be ordered to attend a settlement conference. What exactly takes place at a settlement conference? A settlement conference is designed to help the parties reach a settlement agreement in their case. The parties and their attorneys (if they do not have an attorney, the party attends the conference by themselves) meet with a retired judge who hears the facts of the case and tries to help the parties reach an agreement. That retired judge will not be the same judge who will hear the case should the case proceed to trial if the parties do not settle. Often times, the settlement judge will meet with the parties separately and go back and forth until the parties reach an agreement. If an agreement is reached, the agreement is then placed on the record and it becomes official. At that time, any future trial dates may be vacated or modified to reflect that the matter is now uncontested. If the parties are not able to reach an agreement, then the matter will proceed to the scheduled trial date.

It is important to be as prepared for a settlement conference as possible. It is an effective way to reach an agreement and minimize fees without having to go to a long trial. If you have any questions, please call us at (443) 741-2567 and we would be happy to meet with you to discuss your case.

Yes, you can be awarded alimony in Maryland if you meet certain factors. First, it’s important to know that that there are three forms of alimony that a judge award. The first is temporary alimony which is awarded during the divorce process which ensures that the party requesting it can financially support themselves during the divorce case. The second is rehabilitative alimony which is awarded post-divorce and usually for a short period of time. It allows the party requesting it to renter the workforce or to complete their education to get a higher paying job so that they can become self-sufficient. The third is indefinite alimony which is awarded to a party when they are unable to work due their age or disability, or due to their lifestyle when they were married to their partner.

Alimony must be requested before the final trial and, if waived, the parties cannot come back to court and ask for it later. It also can be modifiable depending on the parties’ financial situation or income. The amount of alimony to be paid will be decided by the judge hearing the case after consider a variety of factors. If you have questions about alimony, please call us at (443) 741-2567 and we would be happy to answer all of your questions.