Blogs from July, 2025

Divorce doesn’t only end the marital relationship — it also addresses the economic aspects of your marriage. One way the court gathers information to make fair decisions about the financial matters that need to be decided in a divorce is by requiring each spouse to submit a detailed financial statement. If you are tasked with completing a financial statement in a Maryland divorce, it is crucial that the statement be complete and accurate to ensure an equitable distribution of marital property and avoid any unintended financial consequences in your case.

What is a Financial Statement in Divorce?

A financial statement is a detailed document that each spouse must submit in a Maryland divorce. It is meant to ensure transparency and provide the judge with a clear picture of each spouse’s income, expenses, assets, and liabilities, so that a fair decision can be rendered regarding child support, alimony, and property division. Notably, this form is not optional — it is a legal requirement in every case where child support, alimony, or attorney’s fees are at issue.

There are two versions of the financial statement: the long form and the short form. While the long form version has six pages and requires much more detail about monthly expenses and income, the short form (used for child support cases under a certain income threshold) only contains two pages. Specifically, the long form is required when an initial request for spousal support is made or in cases involving a spousal support modification. The parties must also complete the long form if child support is requested, and the combined income of the parties exceeds $30,000 per month.

What Information Should Be Included in Your Financial Statement?

The short form financial statement is used when child support is the primary issue that must be determined, and the combined household income is less than $30,000 per month. It is typically straightforward since it only requires you to disclose gross monthly income, child-only health insurance premium information, work-related childcare expenses, extraordinary medical expenses, monthly school expenses, and transportation costs for access between the parents’ homes.

The long-form financial statement requires much more detail. You must include information about your monthly gross income from all sources, including the deductions taken out for taxes and retirement. You must also document information regarding your monthly expenses:

• Residence — All costs in connection with your primary and secondary residence must be disclosed on the financial statement. This includes expenses incurred for mortgage or rent payments, homeowner’s insurance, taxes, gas and electric, heat, water, repairs, lawn care, carpet cleaning, painting, and more. You must also list costs of trash removal, telephone bills, domestic assistance, replacement furnishings, appliances, and any condominium fees.
• Household necessities — In this portion of the financial statement, you are required to document the costs of food, household supplies, drug store items, and other household necessities.
• Medical and dental costs — A financial statement requires you to list medical and dental costs incurred by both you and your children. This includes expenses for health insurance, therapy, dental care, glasses, and extraordinary medical care.
• School expenses — School expenses must be disclosed on a financial statement, including the costs of tuition, books, lunch, extracurricular activities, uniforms, clothing, and daycare or nursery school.
• Recreation and entertainment — You must provide the court with a detailed breakdown of the costs incurred in connection with vacations, videos, theater, dining at restaurants, cable TV and internet, camp, lessons, memberships, and other extracurricular activities.
• Transportation — The long form requires you to disclose details regarding any car payments, repairs, auto insurance, parking fees, and public transportation costs.
• Gifts — Holiday and birthday gifts must be disclosed on the long form, as well as charitable donations.
• Clothing — The costs of clothing purchases, laundry, alterations, and dry cleaning must be listed on the financial statement.
• Incidentals — The form accounts for incidentals, such as books, magazines, newspapers, stamps, and banking expenses incurred on a monthly basis.
• Miscellaneous — Other miscellaneous expenses must be included on the long form financial statement, such as alimony or child support from a previous order, religious contributions, haircuts, manicures, life insurance, and expenses related to pets.

Other information that must be disclosed on a long-form financial statement in a Maryland divorce includes assets and liabilities. Assets can include real estate, bank accounts, furniture, stocks, personal property, jewelry, vehicles, and other marital property. Liabilities may include bank loans, mortgages, automobiles, notes payable to relatives, and credit card debt.

Depending on the specific financial issues in your case, you may be required to provide supporting financial documentation, appraisals, or professional valuations. Your attorney can best advise regarding the information you will need.

Why is Accuracy Important in a Financial Statement in a Maryland Divorce?

The financial statement in a Maryland divorce is highly detailed and can take a considerable amount of time to complete. It’s important to be accurate when filling out a financial statement and not to rush through completing it — the court will use the information in this document to determine your financial position.

Failure to complete the form accurately can result in costly consequences. Not only might you not receive the relief you’ve requested, but you may also leave yourself open to attack by your spouse during a deposition. In addition, an incorrect financial statement can impact your credibility in the eyes of the court and drive up the costs of divorce proceedings. If certain assets weren’t disclosed, additional time and resources may need to be dedicated to investigating the missing information.

Common Mistakes to Avoid on a Financial Statement

There are several common mistakes that people often make when preparing financial statements. The following errors can easily be avoided to help ensure the divorce process runs smoothly and you are not left open to potential challenges brought by your spouse:

• Not understanding your expenses — List your expenses accurately on the form, rather than estimate them.
• Listing an expense more than once — If you list an expense in one section of the financial statement, you cannot also list it in another section
• Understanding the number of pay periods and bi-weekly cycles in a year - there are 26 two (2) week cycles in a year. You can’t simply multiply a bi-weekly expense by two (2) to arrive at the monthly number. You must multiply by twenty-six (26) and divide by twelve (12).
• Forgetting about annual expenses — While the form asks you to list monthly expenses, some expenses are incurred annually and need to be taken into account.
• Using payment amounts that are no longer valid — Be sure to use the amount of current payments for expenses incurred, rather than past payment amounts.
• Failing to distinguish between your expenses and those of your children — The long form requires you to distinguish between your own expenses and those of your children. While some expenses benefit both you and your children, it’s vital to keep good records and seek the advice of an attorney when filling out the form.
• Not consulting with a lawyer before filling out the form — The financial statement is a complex and confusing document. Your attorney can answer any questions you have and advise you on how to fill it out to ensure it is thorough and accurate.

Significantly, the financial statement is a court document that is signed under oath — this means that you are affirming the truthfulness of the contents in the document under penalty of perjury. If the court finds that you are willfully concealing financial information, various penalties can be imposed, including contempt of court. Deliberately hiding income can also result in your spouse being awarded a larger portion of the marital assets.

Contact an Experienced Maryland Divorce Attorney

Completing a financial statement in a Maryland divorce can be overwhelming and stressful. It’s essential to have a compassionate divorce attorney who can help you navigate the process. At the Law Office of Shelly M. Ingram, our Fulton, Maryland divorce attorneys work closely with our clients for a wide variety of divorce and family law matters. Trained in collaborative divorce, mediation, and traditional divorce litigation strategies, we work closely with our clients to achieve a positive outcome in every case.

To schedule a confidential consultation with an experienced Maple Lawn divorce attorney, call us at (240) 652-2596">(240) 652-2596 or contact us online.

Maryland follows the doctrine of equitable distribution in divorce. This means that a court will divide any assets acquired during the course of a marriage in a way that is deemed equitable to both spouses. Equitable does not mean equal or fair. The equitable division of assets can become more complex when marital property in Maryland has been mixed with assets that are characterized as separate property. This is referred to as the “commingling of assets.”

What are Commingled Assets?

In order to understand what commingled assets are, it’s essential to first understand the difference between marital and separate property. Marital property in Maryland is defined as any property acquired by either spouse during the course of the marriage. Separate property is that which is owned by either spouse prior to the date of the marriage, or excluded by valid agreement, gifted by a third-party, or inherited. Importantly, only marital property is subject to equitable division in divorce.

The commingling of assets occurs when marital and separate property are mixed. This can make it difficult to trace the origins of property, and more challenging to divide it fairly in divorce.

How Can Commingling Happen?

The commingling of assets is common in marriages, especially those that are long-term. Over time, the lines between what is separate property and marital property can become blurred, making it difficult to differentiate how property is classified. Some common examples of commingled assets include the following:

• Using an inheritance to renovate the marital home
• Depositing a personal injury settlement or an inheritance into a shared bank account
• Using marital funds to expand a business started by a spouse prior to marriage
• Using marital assets to pay the mortgage on a home bought by a spouse before the marriage
• Purchasing a new property with both separate and marital assets
• Transferring funds from a pre-marriage retirement account into a joint retirement account

One of the biggest issues that can arise with commingled assets is a lack of documentation. If you do not have detailed records, it can be very challenging to divide the property in a divorce. Receipts, bills, bank statements, titles, and financial records can help trace the origins of the assets. Without records, it can be difficult to track how funds were moved, and a court might assume the entire asset is marital property, subject to equitable division.

How Does a Court Determine How to Divide Assets That Are Commingled?

Dividing marital property in Maryland can become much more complicated when commingled assets are involved. The court would need to first identify which assets are commingled. This involves tracing each asset to determine whether it was initially marital or separate property. Tracing property is a complex process that often requires the assistance of a forensic accountant.

Once commingled assets have been identified, a judge would need to determine how much of each asset’s value should be classified as marital property. That portion of the asset would be divided equitably by the court. Any increase in value to a separate piece of property due to the other spouse’s contributions would typically be considered marital property subject to equitable distribution.

What is deemed a fair division of property by the court may not always be the best outcome for the spouses, particularly when it comes to the commingling of assets. Mediation and the collaborative divorce process are two alternatives to litigation that can allow spouses to determine property division for themselves, rather than leaving things to a judge to decide. Both processes emphasize open communication, reduced conflict, and tailored solutions. Importantly, these out-of-court processes give spouses an opportunity to explore creative and flexible options to divide assets that have been commingled, as opposed to the limited options that are available in court.

Using a Prenup or Postnup to Determine How Commingled Property Should Be Handled

When deciding how marital property in Maryland should be divided in divorce, a judge would assess whether there is a prenuptial or postnuptial agreement in place. If the spouses signed a valid prenup or postnup, it can determine how commingled assets are divided in divorce. For instance, a prenup or postnup can define what is considered separate and marital property. A provision can also be included that specifies how the division of commingled assets should be handled.

A prenup or postnup can prevent the commingling of assets from happening in the first place. The document can determine that any separate assets mixed with marital assets should be treated as marital property. It can also award specific assets to each spouse and keep the issue of property division out of litigation in the event of divorce.

Contact an Experienced Maryland Divorce Attorney

Property division in divorce can be emotionally charged — and the issue of commingled assets can make the matter even more contentious. At the Law Office of Shelly M. Ingram, our Fulton, Maryland divorce attorneys provide our clients with trusted legal services for a wide variety of divorce and family law matters, including property division. Trained in collaborative divorce, mediation, and traditional divorce litigation strategies, we work closely with our clients to achieve a positive outcome in every case.

To schedule a confidential consultation with an experienced Maple Lawn divorce attorney, call us at (240) 652-2596">(240) 652-2596 or contact us online.

Child custody mediation can be an effective tool to help parents resolve disputes concerning custody matters and parenting time. Unlike the adversarial process of litigation, mediation promotes amicability between co-parents and tailored solutions that work for the whole family. Importantly, you know your children better than a judge in the courtroom — and mediation can help you and your co-parent reach a mutually agreeable resolution customized to your child’s unique needs.

Here are several ways mediation can help you resolve a child custody dispute:

Provide a Structured, Neutral Environment

Child custody mediation follows a structured process where a neutral third party, called a mediator, guides the discussion and helps parents develop a parenting plan that will meet their child’s best interests. Mediation takes place in a neutral environment that promotes cooperation, minimizes potential for disputes, and allows parents to openly share their concerns. After you and your co-parent have reached an agreement with the help of a mediator, a parenting plan will be drafted, signed, and submitted to the court for approval.

Reduce Conflict

In contrast with litigation, child custody mediation focuses on reducing conflict and preserving your co-parenting relationship. Not only can this help you reach a resolution more efficiently, but mediation can also provide you with the tools you need for effective communication with your co-parent in the future. Significantly, avoiding a lengthy and contentious battle in the courtroom can spare your children from the emotional impact that can be associated with a custody dispute.

Encourage Open Communication and Collaboration

Mediation encourages open communication and collaboration between co-parents. You and your co-parent can identify your priorities and brainstorm ideas that will work for your family. This collaborative approach can help you and your co-parent build a more positive relationship moving forward. Additionally, parents who create their own parenting plan for their children are more likely to respect the terms and comply with the agreement.

Provide Flexibility

Flexibility is key in a co-parenting relationship. Mediation can allow you to find ways to be flexible when it comes to visitation, holidays, decision-making responsibilities, relocation, and other custody issues. Notably, you and your co-parent can tailor your plan to fit your family dynamics.

Help You Find Creative Solutions

Child custody mediation can help you find creative solutions that might not be available in the courtroom. Instead of entering into a court-ordered inflexible arrangement, mediation can enable you and your co-parent to create a parenting plan that meets the needs of your family. You can develop a customized parenting time schedule that accommodates your work commitments, your children’s extracurricular activities, and your child’s educational needs — instead of being required to adhere to a strict alternating weekend schedule that might be imposed by the court.

Empower You to Make Decisions That Impact Your Child

With mediation, you do not have to rely on a judge to decide the issues and schedule that may impact your family for years to come. Child custody mediation empowers you and your co-parent to determine what custody arrangement and parenting time schedule is best for your child. In addition, parents are usually more satisfied with the outcome when they decide custody issues between themselves, rather than litigating them.

Reduce Stress

Child custody mediation provides a less adversarial environment than a court proceeding. The process allows you and your co-parent to communicate your concerns and goals in a calm setting. By facilitating healthy communication, a mediator can help to minimize the potential for conflict and prevent further emotional harm to you, your co-parent, and your children.

Strengthen Your Co-Parenting Relationship

Mediation can lead to better co-parenting — and a stronger co-parenting relationship. The process encourages healthy communication strategies and active listening now, and can help to cultivate those skills for the future. If the needs of your child change over time, you will have strong communication tools to navigate the process of making adjustments to your parenting plan without conflict.

Focus on the Best Interests of Your Child

When creating a parenting time agreement, modifying a custody arrangement, or dealing with a custody dispute, the best interests of your child should come first and foremost. Child custody mediation can shift the focus from parental conflict to your child’s well-being. A mediator can not only assist you and your co-parent in understanding each other’s perspectives, but they can also help you consider your child’s emotional, physical, and psychological needs. Mediation can also be useful to establish consistent routines for your child and ensure they maintain a healthy relationship with each parent.

Contact an Experienced Maryland Family Law Attorney

Child custody mediation can be an effective, cost-efficient, and amicable way to resolve conflicts related to custody and parenting time. At the Law Office of Shelly M. Ingram, all of our Fulton, Maryland divorce attorneys are trained in collaborative divorce, mediation, and traditional divorce litigation. We will work closely with you to find a strategy that will ensure the best possible outcome in your case.

To schedule a confidential consultation with an experienced Maple Lawn divorce attorney, call us at (240) 652-2596">(240) 652-2596 or contact us online.