You aren’t alone: What is a Marital Dissolution Agreement and Now What?
Many of my clients are overwhelmed during and immediately proceeding a divorce, understandably so. There are so many moving parts not to mention the emotional rollercoaster. One of the most common questions is “Now What?”
Let’s first start by defining the document that finalizes the divorce and for the purposes of this post; we will be referring to the Marital Dissolution Agreement, sometimes referred to as the “MDA”.
A MDA is the document most commonly used in divorces with irreconcilable differences and it outlines the end of the marriage and division of marital property and debts. While your marriage involved more than just “money and things”, a big part of what gets divided once you have decided to separate and divorce is strictly that “money and things”.
In general, the document will contain information pertaining to both parties and contract language defining the scope of agreement before getting into the meat of the “money and things”.
The financial components addressed by the MDA will typically and most commonly be defined and numbered by section making it easier for you to locate the particular item. Some of these included but are not limited too the Marital Home, other Marital Real Estate/Investment Property, Vehicles, Furniture/Furnishings, Bank Accounts, Investment Accounts, Retirement Accounts, Debts, Insurance Coverage, Life Insurance, Alimony (if awarded), Dependents/Child Support, Pets, and Attorney Fees.
In an effort to take away some of the stress, I have listed some of the most common concerns and questions my divorcee clients have asked when trying to navigate the “What Now” process.
- Do I stay in my Marital Home or Sell It?
- Do I have enough equity in my Marital Home to buy a new home?
- Do we sell our rental property and split the equity or maintain the property?
- The automobiles are in my former spouses name, does it need to be in mine?
- I have been awarded alimony; can it be direct deposited into my account each month?
- Will I owe tax on the alimony received? Are axes owed on any child support?
- Is the dividing of assets a taxable event?
- How do I obtain half of the retirement accounts I have been awarded? Will the money transfer to my name?
- I think my husband has a pension, does that affect me?
- What is a qualified domestic relations order (QDRO)?
- When can I draw social security and do I qualify on his earnings?
- Do I need to have my estate documents updated after my divorce?
- Should I check my credit?
If you have these questions, you are not ALONE! You may even have additional questions as I have only included the most asked. Remember its one step at a time! The good news is that most of the answers lie within your MDA.
The best decision you can make is enlisting the help of a financial professional to help you continue to work through these questions and ensure the settlement outlined in your Marital Dissolution Agreement is completed.
Benefits of Working with a Financial Professional
Although you can certainly do it alone, you may find it helpful to work with a financial professional to assist you in creating and implementing a financial plan.
A financial professional can help you accomplish the following:
- They will be concerned about you and your well being
- Will assist in reading through your MDA with you and help answer any questions you have pertaining to the financial components
- Determine the state of your current affairs by reviewing income, assets, and liabilities
- Develop a plan and help you identify your financial goals, both short-term and long-term
- Make recommendations about specific products/services
- Monitor your plan
- Adjust your plan as needed
I hope you have found some reassurance in knowing you are not along, and I can help. If you have any questions, call me, 615-369-1611!
Let’s talk soon!
Maleah
