Posted on April 06, 2022 in Uncategorized

The American Psychological Association states that between 40-50% of marriages in the US end in divorce. This indicates that many couples have to figure out a way to handle debt that occurred during divorce proceedings. If you’re a Maryland resident, here are some important things to know about debt and divorce to protect your finances.

Legal responsibility for debt

Divorcing couples who live in community property states won’t necessarily pay marital debt according to which spouse created the debt. Both spouses could be equally liable even if one spouse was not aware of the debt.

Maryland is considered an equitable distribution state, which means the courts will assign the debt(s) to the spouse who created the debt. Usually, the debt belongs to the spouse whose name is on the bills for the debt. If both spouses are named on the debt, both are responsible for paying it, even after the divorce.

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 Posted on March 22, 2022 in Uncategorized

Not all final divorce decrees lead to a 50-50 split among the parties. Several factors could contribute to an uneven distribution of assets. Married couples with a prenuptial or postnuptial agreement may address mutually agreed upon asset distributions, subject to review in a Maryland court.

The difference between a prenuptial and postnuptial agreement

A prenuptial agreement establishes asset allocations and possibly support amounts before marriage. For example, one spouse may receive a specific amount of spousal support per month for a certain number of years, along with a lump-sum payment upon the dissolution.

A postnuptial agreement serves the same purpose as a prenuptial one. The clear difference is a postnuptial agreement is signed after the couple marries. A postnuptial agreement could replace an earlier prenuptial document although it is possible to sign a postnuptial document even when no prenuptial one exists.

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 Posted on March 09, 2022 in Uncategorized

A troubled marriage could end in divorce, but the dissolution might not end communications with a toxic ex-spouse. When both former partners have a co-parenting plan, they must deal with one another. With a highly toxic ex-spouse, the situation could become stressful for the parent and damaging to the child. Things may reach the point where a Maryland family court has to oversee things.

Co-parenting with a toxic ex-spouse

“Toxic” refers to a broad spectrum of behaviors that make communicating with someone challenging. The toxic individual could be insulting, abusive, self-centered, or always creating drama. While the person might be a decent parent to the child, his or her toxic behavior might make communications almost impossible.

As much as one parent would prefer not to deal with a toxic ex-spouse, a co-parenting arrangement makes interactions necessary. Narrowing communications may make things easier, and limiting discussions to present and future matters regarding the child could be one way to shrink the interactions.

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 Posted on February 22, 2022 in Uncategorized

If you and your spouse have begun to discuss getting a divorce in Maryland, you may be surprised to learn that you cannot deduct alimony payments to your spouse on your income taxes. Similarly, if you receive alimony payments after your divorce, you do not have to declare the money as taxable income.

Tax Cuts and Jobs Act is responsible for the changes

While your close friend may talk about deducting his alimony payments, his divorce agreement had to have been finalized before 2019. The Tax Cuts and Jobs Act (TCJA) of 2017 changed the way alimony payments are classified for former spouses, indicating that alimony was no longer treated as taxable income or a deductible expense. Only agreements finalized prior to 2019 remain tax deductable or considered taxable income. Generally, the same holds true for agreements that were modified before 2019. However, if you had an agreement in place before 2019 and altered it afterward, the payments will not be deductible if the terms of the agreement have changed and you and your former spouse have indicated that the payments do not constitute deductible alimony or taxable income.

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 Posted on February 16, 2022 in Uncategorized

If you are going through a divorce in Maryland and you have young children, it is important to try to avoid conflict with your estranged spouse. This is not just for your own peace of mind and well-being but because it can make the divorce more difficult for your children. However, this can be easier said than done. Even the most well-meaning of parents who are concerned about the best interests of their children can fall into harmful patterns if they are not careful.

Children caught in the middle

Children are perceptive and can pick up on your emotions, so if you think that you are just casually asking questions in an effort to keep tab on the other parent, your children can start to feel caught between the two of you. This can also be the case if you are asking them to take messages to the other parent, even if they are innocuous ones. When you are creating a parenting plan, you can agree on a method you will use to communicate with each other. There are tools especially designed for this if you want to make sure you have a record of those communications.

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 Posted on February 14, 2022 in Uncategorized

No one ever expects to get divorced, but it happens all the time. In fact, statistics show that more than 50% of all marriages end in divorce. If you are going through a divorce in Maryland and have online accounts that are shared with your spouse, it is important to take steps to protect yourself and your assets. Here’s what you should know.

Dealing with online accounts

The first thing you need to understand is that you have the right to access all of your online accounts with your spouse during the divorce. They can’t just change the password and lock you out of your online accounts, and you can’t do that either. So, if you have joint online accounts, you need to figure out how best to divide them.

Who gets the passwords?

In Maryland, family law is clear that passwords are considered to be property. This means that they are subject to division during a divorce proceeding, just like any other asset. In most cases, the court will give the person who has control over the account custody of the password. This can include the spouse, parent, or guardian of the minor child. However, there are instances where the court may decide that it is in the best interest of both parties to share custody of a password or allow one party full control over an account.

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 Posted on February 08, 2022 in Uncategorized

Filing for divorce in Maryland is not a simple and quick process unless there are no dependent children involved and both spouses are agreeable to the split. Marriage in the view of the state is effectively the same as a business contract, but it also carries the authority to have children legitimately under the acceptance of the state. States effectively control marital relationships just like any other formal and legitimate business partnership, basically for tax purposes. The divorce returns the spouses to individual status from a single legal unit. And just as with any other business dissolution, there are administrative steps involved in the process.

Temporary separation petition filing

The first step in a divorce is the court order establishing a temporary separation as a single legal entity. Maryland is actually one of the states that allows continuing legal separation as an option to a permanent split. This is determined by the type of initial divorce petition.

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 Posted on January 25, 2022 in Uncategorized

A Maryland judge typically won’t prevent a parent from spending time with a child merely because of that person’s financial situation. However, your finances may be a factor when that judge must decide if you should have custody of your children.

Can you afford to give your child what he or she needs?

As a primary caregiver, you will need to provide your child with basic necessities such as food, clothing and shelter. If you can’t afford to live in a safe area, you may not receive custody of your children. The same may be true if you can’t afford to live in a home that is large enough to accommodate your son or daughter.

Resources may be available to help you raise your child

It’s important to note that the relationship between a parent and child is a critical factor when crafting a child custody ruling. Therefore, if you have a strong bond with your child, you may be granted custody of that minor regardless of how much you earn each month.

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 Posted on January 11, 2022 in Uncategorized

As Maryland residents prepare for divorce, they might be surprised by some of the issues that come up. Divorce is often a complicated, emotional process and preparation can help offset the sting when a dispute begins.

Division of property can be a contentious process

As an equitable distribution state, Maryland law establishes that during a divorce, property is not necessarily divided equally but in a fair manner. This might surprise some divorcing spouses who expected to get a settlement for fully half the value of the assets. This means that often, during this process, you and your soon-to-be ex-spouse will need to negotiate the division of the property. Some of the things you need to learn about include:

• The present value of each asset
• Any tax consequences for selling the asset
• Hidden costs and expenses related to the asset that are easy to overlook

As well, you need to become somewhat emotionally detached as negotiating based on emotions can financially hurt and threaten your financial well-being. During this process, you will also need to be clear about all your debt, individual and joint, so you can address it legally and not find yourself responsible for paying a bigger share of the debt after the divorce.

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 Posted on December 14, 2021 in Uncategorized

A parent might love a child very much but be unable to provide the necessary care. Sometimes, neither parent can tend to the child’s needs, so the young one enters the foster care system. If the parents seek a divorce in a Maryland courtroom, the decree could include paying child support. The parent obligated to make the monthly payments may wonder if the child’s placement in foster care reduces or eliminates the child support requirements.

Child support and foster care

The foster care system intends to provide a supportive home for the child in need of a caregiver. When accepting the young one in a home, the caregiver takes on many responsibilities, but the biological parents do not find themselves freed from financial obligations. If the parent must pay child support, the support order would likely remain in effect when the child is placed in a foster home.

Those who do not meet their child support payment obligations could find themselves in legal trouble. Falling behind in child support could lead to wage garnishments and arrests.

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