Divorce in The New Year Advantageous for Property Division

We are in the midst of the holiday season now, but January is fast approaching. For many Marylanders, a new year can bring a new perspective on marriage – and ultimately can also lead to divorce. January is usually a time for new beginnings, and a large number of couples do choose to split up during this time of year. A variety of emotional, social and property division factors can weigh heavily in this decision, according to family law experts.

One of the more pragmatic reasons for divorce in January: Your company bonus check has already been put in the bank. If you wait until the first of the year to file divorce paperwork, it can be easier to handle complex matters related to your finances. Waiting until January can assure that this check is labeled as marital property, which means that each person could be entitled to a share. In many states, filing for bankruptcy effectively stops the accrual of marital property, so it often makes financial sense to wait to file.

Further, waiting for the end of the tax year can make a big difference in the quality of your divorce. It can be difficult to act in a rational and fair manner about finances when your tax burden is uncertain. Couples should be sure to plan major decisions, such as which parent can use the tax exemptions for children. You will have a full year to determine your filing status and prepare for financial changes that lie ahead.

Financial matters related to divorce can make a difference in your future quality of life. Family law attorneys and financial professionals may be able to explain legal options for tax benefits and division of marital property. These individuals can help clients handle complex matters about property and business division, helping both parties move on to their post-divorce lives faster.

Source: Huffington Post, “Three Reasons Why January May Be the Best Time to File for Divorce” Bari Zell Weinberger, Dec. 11, 2013