Divorce can be a difficult process for many reasons, but the financial aspects of divorce can be especially daunting. Because married couples often have a considerable amount of shared assets, determining how these assets will be distributed is often a lengthy and emotional process. Subsequently, many divorcing spouses worry about common financial mistakes in divorce and how to avoid them. Thankfully, our experienced firm is here to help! To learn more, read this blog or reach out to a Morton Divorce Lawyer today for high-quality legal counseling!
WHAT ARE THE MOST COMMON FINANCIAL MISTAKES DURING ILLINOIS DIVORCE?
One of the most common mistakes in a divorce is making financial decisions based on emotions rather than logic. Divorce has a substantial impact on a person’s finances, and it’s crucial to be informed and organized when handling your finances during this process. Many spouses choose to keep the family home after a divorce for sentimental reasons, even if it’s not a great financial decision. It’s likely your financial status will be entirely different after the divorce has been finalized, and you’ll need to consider whether you can keep up with mortgage/rent payments, property taxes, and maintenance.
To effectively determine your finances after a divorce, you should track your expenses to figure out a reasonable monthly budget. It’s also important to take inflation into consideration. Instead of viewing your sources of income and assets separately when financial planning, you’ll need to view your finances as a whole to be successful.
HOW ELSE CAN I SECURE MY FINANCES POST-DIVORCE?
Many spouses going through the divorce process may not be aware of certain policies that could benefit their financial situation. For example, if you’re still entitled to benefit from your ex-spouse’s retirement plan, you’ll need to secure a Qualified Domestic Relations Order (QDRO). You’ll need this legal document in order to still receive payments from your ex-spouse’s financial plans, and a divorce attorney can help you attain one.
If your spouse will be required to pay you spousal support (AKA alimony) and/or child support after the divorce, you may want to make sure that your spouse has disability insurance or life insurance. This ensures that you’ll still be able to receive your payments in the event that your spouse is unable to pay.
Are you considering divorce or just beginning the divorce process? Are you looking for a talented divorce attorney who has your best interests in mind? Look no further because Butler, Giruado & Meister, PC is here to help! Contact our effective team today for an initial consultation.