A financial crisis could take Maryland families by surprise. Unexpected downturns in an economy might result in job losses or drastic reductions in small business revenues. Others might find their investments lose value. Imagine such things happening at a time when medical or home improvement costs loom. The strain could become unbearable, but ignoring such matters isn’t an option, especially for divorcing couples.
Focusing on financial issues
Financial struggles could require completely rethinking a household budget and other responsibilities. While it might not be pleasant to tell a college-age child they cannot live in the dorm next semester, spouses may find the alternative, excessive borrowing, worse.
Not taking steps to deal with a financial crisis won’t make things disappear. Nonaction might lead families to an even worse financial situation.
At some point, all parties may need to discuss the situation and focus on how to deal with it. For divorcing couples, determining a clear picture of a couple’s finances might become necessary for settlement negotiations.
Financial woes and divorce proceedings
During divorce negotiations, both spouses may focus heavily on property division. If the marriage finds itself plagued by debts, questions about which spouse will cover what obligations may arise. Those obligations could include tax debts, both past, and future.
Spousal and child support could become the focus of negotiations, and an impasse may lead to requesting the court render a decision. Presenting evidence about one or both spouses’ financial strengths or weaknesses may help the process remain both realistic and focused.
Compiling financial records and statements represents one way to display a financial picture. Detailed evidence might also address concerns about hiding assets and other potential malfeasance.
