Leaving Your Spouse?
Financial Considerations for Couples Separating
By Regina DeMeo
Under any circumstances, marital separation takes an emotional toll on a person. To help manage the feelings evoked by a separation, many find it helpful to seek counseling with a mental health professional. At the same time, one should consider consulting a family law attorney to learn about legal rights and help plan the separation in a manner best suited to one's specific situation. While every case is different, following is some general information to consider before separating.
First, make a list of household expenses. This will help in structuring an arrangement with respect to payment of joint bills. In some situations, attempts may be made to negotiate a payment schedule before a spouse moves out. If the person remaining in the home cannot afford the mortgage or rent for which both parties are liable, the person moving should consider how much s/he can contribute towards that obligation. In so doing, both parties may ensure that their credit remains protected. Coordinating the transfer of utility bills into the name of the party remaining in the home also should be accomplished. And finally, continued use of joint credit cards should be addressed. Any financial arrangements made between the parties should be in writing and signed.
Second, gather as much financial information as possible, to include assets, liabilities, expenses and income. If one is not already in place, start a filing system for all statements and/or documents pertaining to assets, including 401Ks, pensions, bank accounts, real property, mutual funds, automobiles, timeshares, furniture, art, life insurance policies, annuities, and business records. When it comes time to discuss the division of marital assets, whether in negotiations, mediation, arbitration, or before a judge, these documents will be essential. Keep in mind that an organized and knowledgeable individual becomes an empowered party in negotiations.
Third, consider establishing a separate bank account and developing a timeframe for terminating any direct deposits or automatic withdrawals affecting any joint accounts. It is sometimes advisable that the parties discuss how funds in joint accounts will be divided. If an agreement is reached, it is important to expedite any transfers of funds. Though courts can frown on one party dissipating accounts, absent a court order or agreement freezing the accounts, either party may access available funds.
Navigating the legal aspects of a divorce can be daunting. Individuals engage legal counsel at varying times throughout the process to assist with separation and/or divorce. Remember that while it is never too early to seek the advice of counsel, if only for a short consultation to learn about one's rights, many make the mistake of waiting until it is too late. It is highly advisable to seek the guidance of both a mental health professional and legal counsel, as soon as the likelihood of a separation becomes apparent. Separation is never an easy process. That said, arming oneself with knowledge and empowering oneself emotionally will make for a smoother transition.
If you wish to schedule an appointment regarding your divorce or have a question about family law or the mediation process, please contact me.
Law Office of Regina A. DeMeo
4550 Montgomery Ave, Suite 760 North
Bethesda, MD 20814-3379
Phone: 301-951-1550
Fax: 301-951-1599
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The Law Office of Regina A. DeMeo serves clients throughout Maryland and Washington, D.C., including Bethesda, Rockville, Gaithersburg, Silver Spring, Potomac, Chevy Chase, and Montgomery County.
