Sometimes a divorce can be amicable, simple and quick. Sometimes the process can be quite the opposite. But, whatever type of divorce a Maryland resident finds themselves involved in, an almost universal aspect of the ordeal will be determining property division. And, no matter how the division of property ultimately ends up, many times both parties will find themselves in a very different financial situation afterward – this can be true in both simple property division cases and complex property division cases.
Why is it that property division can be complicated? The goal in splitting up assets is equitable division. That may sound easy enough. After all, why can’t a couple just split everything down the middle? The problem is that almost all of a couple’s assets have to be considered in the valuation process, including business assets, retirement accounts and all bank accounts. When all is said and done, equitable division does always mean a 50/50 split.
When considering divorce, it is good to have a financial plan in place for post-divorce life. If a couple has a dual income household that financial structure will no longer be in place. Paying bills from a single income can sometimes be harder to accomplish, especially when the divorcing couple has not considered the potential for a drastic change in available money.
The good news is that post-divorce life can be made less traumatic by putting in place a solid path toward financial viability as a single person. The value of a person’s total assets could end up being substantially different, and the adjustment can be hard sometimes. In order to lessen the burden, consulting with financial planners and others with knowledge of the divorce process can ultimately be the best way to ease the transition into a post-divorce lifestyle.
Source: USA Today, “Before divorce, you should get financially prepared,” Hadley Malcolm, Sept. 9, 2012