Financial Mistakes to Avoid During an Illinois Divorce

 Posted on July 12, 2019 in Divorce

It is no secret that getting a divorce is expensive. Not only can you lose money in the process, but the time and energy required can also take a toll. A divorce can compromise your finances, so it is important to be smart about money during this time.

During divorce, marital property is divided between spouses, and this property includes all assets and debts acquired during the marriage. When property is divided between divorcing spouses in Illinois, this division should be done in a fair way. This is referred to as equitable distribution. However, each spouse's share of the assets is rarely equal, as decisions about the division of assets are based on many factors, such as the length of the marriage and the couple's standard of living. 

The share of marital property that you receive following your divorce may enable you to maintain financial security, but you will likely also want to take other steps to protect your finances. This will help you make sure you will be able to meet your own needs as you move on to the next stage of your life after your divorce has been finalized.

Financial Tips For Going Through a Divorce

There are certain precautions you can take to help prevent a financial disaster during your divorce. Planning ahead will make post-divorce life sustainable and alleviate the stress of any lifestyle changes. Consider these tips to avoid financial mistakes during your divorce:

• Eliminate extra spending: Retail therapy may seem like a good idea to celebrate your divorce or blow off some steam, but your new purchases may affect your credit score later. In order to ensure that you will be able to support yourself and your family, now is not the time to buy a new sports car, boat, or designer purse. Pouring capital into physical assets may not work in your favor, since large purchases made before your divorce has been completed may be considered marital property. It is often a better idea to save money so that it will be available after your divorce. 
• Create a budget: When figuring out your post-divorce budget, calculate how much money is required for you and your children to live comfortably. Start out with necessities such as rent or mortgage payments, utilities, and transportation. If you have a job or career, you should be able to determine how much you make without the assistance of your spouse. Compare your income with your expenses and make adjustments as necessary. If you were not employed during your marriage, you may need to supplement your income or find a job in order to make ends meet. If you will be receiving spousal maintenance and/or child support, these payments can help you meet your needs, but you may not be able to live on those payments alone. 

Contact a Rolling Meadows Divorce Lawyer 

Going through a divorce can significantly impact your finances. Avoiding poor financial decisions will help you prepare for success during and after your divorce. An experienced Schaumburg divorce attorney will be your most important asset when negotiating a divorce settlement. The skilled legal team at A. Traub & Associates can guide you throughout the proceedings and help you reach a positive outcome. Call 630-426-0196 today to set up an initial consultation.

Sources:

https://www.forbes.com/sites/davidrae/2018/10/25/divorce-financial-mistakes/#2b8603f7eda2

http://www.ilga.gov/legislation/ilcs/ilcs4.asp?ActID=2086&ChapterID=59&SeqStart=6000000&SeqEnd=8300000