In Maryland, couples have the option to pursue an amicable and cost-effective divorce through Divorce Mediation. This blog post aims to guide couples seeking a cheap divorce in Maryland and shed light on important aspects such as marital property, the family home, retirement assets, and more.
Understanding Marital Property in Maryland:
In Maryland divorce law, Marital Property refers to any assets or debts acquired during the course of the marriage. This can include the family home, vehicles, bank accounts, investments, retirement assets, and other properties accumulated during the marriage.
An Asset Assessment:
Dividing the Family Home:
Even in an amicable divorce, couples have questions about how to split up the family home. Through divorce mediation, we’ll various options to divide the marital home. Some couples may decide to sell the property and split the proceeds, or one spouse may choose to buy out the other. Typically a refinance accomplishes this outcome. There are also options to buy time before the home is split by sale or refinance. It’s crucial to consider factors such as mortgage obligations, home equity, and the emotional attachment each spouse has to the property.
Retirement Assets and Investments:
Retirement assets are often among the most valuable marital property, but can be the trickiest to divide. Taxes and penalties for early withdrawals make it tough to navigate retirement accounts. If you have an IRA, 401(k), 403(b), pension, deferred compensation plan, or similar account, you’ll want professional guidance before dividing the account. Options to divide these include each party keeping his or her own, offsetting an imbalance with other property, or establishing a Qualified Domestic Relations Order (QDRO) to allocate a portion of the retirement benefits to the non-owning spouse post-divorce.
Bank accounts, vehicles, and other assets:
Some assets are for people to use on a day-to-day basis and valuations can change drastically. Cars depreciate and are a utility, so they’re negotiated differently than investments. Many couples like to keep their own bank account or car. Jointly titled assets can be divided or transferred to one party.
“Marital” Debts:
In Maryland, there is no such thing as “marital” debt, in contrast to assets. But a debt does not simply disappear in a divorce! Joint debt must be balanced against assets (think of a mortgage being deducted from a home’s value to get a ‘net’ value) or assigned to the parties in a fair manner. Some couples decide to each keep their own debt.
The Maryland Divorce Mediators Process Works:
To ensure a fair division of marital property, couples may benefit from seeking the advice of financial and divorce experts, such as a divorce attorney and certified mediator.
A trained divorce attorney mediator can assist in facilitating productive discussions and guide couples towards mutually agreeable solutions. Mediation is typically more cost-effective than litigation and allows couples to maintain a more respectful and cooperative relationship throughout the divorce process.
What We Do:
- Obtain a snapshot of marital finances from each party
- Determine valuations for marital property as needed
- Prepare and present a “Marital Financial Worksheet”
- Divide Assets based on equitable goals
- Finalize distribution of assets as necessary.
Dividing marital property in Maryland does not have to be a contentious and costly affair. By opting for an amicable divorce, couples can save money, maintain control over the process, and ensure a fair distribution of assets. Remember to consider important factors such as the family home, retirement assets, and seek the assistance of financial experts or mediators when needed. With the right approach and mindset, couples can navigate this challenging period while setting the stage for a more positive future.