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divorce Archives

Inherited IRAs can be split during a divorce

The federal tax code and various laws regulate how certain assets are divided during a divorce. However, there are no clear rules regarding inherited IRAs. Despite the absence of any legal guidelines, inherited IRAs are being divided up in family courts in Maryland and across America. With new alimony rules coming into place at the beginning of 2019, these retirement accounts may play an even bigger role during divorce in the future.

Restrictions and rules during divorce

Parents in Maryland who get a divorce should be aware that there are multiple parenting and financial restrictions in place once they have started the legal process. For example, taking one's children outside of the country may not be allowed during a contentious divorce or if there are custody issues to address as the courts want to prevent situations in which parents may hold their children in another country to prevent the other parent from having custody.

Preserving a college fund after a marriage ends

A divorce in Maryland or any other state could have an impact on a child's college education. In some cases, this is because a parent may be required to dedicate money to paying child and spousal support ahead of continuing to fund a son or daughter's higher education. In other cases, the increased cost of running two households may make it more difficult to save for future educational expenses.

Collaboration reduces the impact of divorce

When a Maryland couple chooses to get a divorce, it can have both emotional and financial ramifications. Increasingly, those who are going through the end of a marriage are consulting financial planners as well as attorneys. This is because few people want a divorce to result in additional debt that could be avoided by opting for collaboration as opposed to litigation. Generally speaking, a divorce costs anywhere from $1,500 to $15,000.

Entrepreneurship and marriage can be a difficult partnership

There are many business concerns to occupy the minds of entrepreneurs and small business owners in Maryland, but personal concerns can also be of particular importance. Reports estimate that around 50 percent of marriages end in divorce, and that includes marriages strained by the stresses of a business or entrepreneurial activity. Business issues can be reflected in a marriage; for example, money issues can be some of the most stressful problems a couple can deal with. When a couple is suffering financially, the difficulties of dealing with unpaid bills and rising expenses can overwhelm a relationship.

Issues that arise in divorce for older couples

What is sometimes called "gray divorce" is on the rise, and it means that more older couples in Maryland may be divorcing than in previous generations. For those who have not been active participants in managing the household finances, this could mean having to deal with such matters for the first time in their lives.

Housework arguments can be a warning sign for a marriage

It may be no surprise that couples in Maryland who eventually decide to divorce are more likely to argue about a range of issues before the end of the marriage. However, one study indicates that arguments over relatively mundane issues like housework and the distribution of chores can be a significant factor in a split, not only fights over issues that more immediately indicate a serious clash of values, such as finances and parenting.

Financial planning is essential during a divorce

The best time to prepare for divorce is well ahead of the actual court filing. Therefore, unhappy Maryland spouses interested in protecting their finances should take steps to minimize the harmful effects of marital dissolution. Every situation is different, but there are some basic precautions that can help make the financial transition to post-divorce life a bit easier.

Divorce and splitting retirement funds

Maryland residents who go through a divorce and have to divide their retirement funds can avoid having to pay high taxes and penalties by not making certain mistakes. They should be aware that the different kinds of retirement accounts are governed by their own set of rules, particularly with regard to the division of the funds.

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