Commonly held assumptions about divorce can work directly against your financial needs. Speak to someone who understands the ins and outs of a divorce financial settlement as it plays out over time before you accept any kind of agreement.
Some common Maryland Divorce Financial Mistakes Include:
1. Believing that a 50-50 division of property is the same thing as a far division of property.
2. Keeping the house when you can’t afford to.
3. Deciding financial issues one at a time instead of understanding how they affect each other.
4. Failing to guarantee alimony and child support payments with life insurance on the person who is supposed to pay.
5. Failing to make the spouse who receives alimony or child support payments the owner of the life insurance.
6. Believing that your settlement must conform to what a judge would order if your case went to court.
7. Seeking financial advice from someone who expertise is the law.
8. Failing to include the present value of a pension among marital assets.
9. Failing to include transaction costs in the settlement when those costs may be years in the future.
10. Using unrealistic assumptions about inflation and investment returns.
11. Believing that sending retirement assets before age 56½ will always result in a 10% IRS penalty.
12. Failing to consider creative financial solutions.
13. Failing to ask, “How do I know that I will be financially secure after my divorce?” before signing the divorce papers.
[http://divorcesupport.about.com/od.statedivorcelaws/a/Maryland_laws.htm; Maryland Code, Family Law; Sections 11-101 and 11-106, 5-203, 9-101, 9-103, 12-202, 12-204, 7-105, 8-205, 7-103, 8-101, 7-101, et al.]
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