Divorce can affect many aspects of your life, including your finances. If you are about to end your Maryland marriage, you should consider several things to avoid a negative impact on your financial stability.
Begin with a financial check-in
Even before you begin the divorce process, you should complete a financial check-in to see where you stand and where you want to go. Some of the things you should review include:
- Marital assets and debts
- Method of divorce and its costs
- Retirement accounts and plans
- A realistic budget for life after divorce
Knowing all this information can help you begin planning how to negotiate your settlement. You might need to pay or receive child and spousal support depending on your family situation. However, spousal support is not always awarded and, in many situations, is limited in scope to cover a transitional period for the receiving spouse to get back on their feet.
What are your financial goals for the future?
The information you gather will also be useful for you to either continue working on your financial goals for the future or to revise these goals. Going into life post-divorce without a clear understanding of your finances can disrupt your financial status and leave you struggling. If you are close to retirement, you will have less time to recover from any financial impact. So, you should be clear about what you are entitled to in the divorce regarding retirement accounts and if you qualify for claiming Social Security benefits on your higher-earning ex-spouse’s record.
To protect your financial future from any disruption, you must be vigilant before, during and after your divorce. You can do so by being prepared and proactive about your financial interests.