No one wants to just get by during retirement, but establishing a secure financial footing for the future is not always easy. Divorce in particular can complicate plans for one's later years. Making sound, informed decisions regarding the division of marital property is one way to protect that future, but it is not the only approach.
Although there is an undeniable emotional bond that comes with pet ownership, the law generally does not acknowledge anything of the sort. In Illinois, pets are property and little more. Just as with the marital home, investments and even the furniture, couples must decide what will happen to the family pet during divorce.
Creating a financially secure retirement takes much more than just tucking away a bit of money for a few years. Adults in Illinois spend decades growing their retirement accounts through both personal and employer contributions. The idea of compromising those savings might feel out of the question, but it is an unavoidable issue during divorce. Here are a few things one might expect when dividing a 401(k) account.
The holiday season is the happiest time of year for many people, but for others it represents a struggle more than anything else. Social pressure and expectations place a tremendous amount of pressure on couples who are already struggling to find happiness in their marriages. This is one of the reasons why the number of people filing for divorce drastically increases during the first month of the year.
Prenuptial agreements are powerful planning tools for protecting wealth. Significant assets may be on the line during a high asset divorce, including property interests, retirement plans and more. A high-profile couple in Illinois can avoid dealing with complex asset division during divorce by addressing the matter prior to marriage.
Leaving an inheritance to an heir is an act of love and respect. An inheritance might include valuable assets or family heirlooms, both of which are meant to stay within the family. When an heir receives a size-able financial sum as his or her inheritance, it may be based off one or more generations of hard work and dedication. Protecting that inheritance during a divorce should be simple enough. However, there can be certain complicating factors during asset division.
Even if it may not seem like it, married couples tend to put a significant amount of time, effort and money into purchasing or investing in property. Although this term might sound particularly specific it is actually applied rather broadly. Unless there is a prenuptial agreement stating otherwise, almost all property acquired during a marriage is considered marital property. As such, asset division can be particularly complicated depending on the length of marriage or how much property a couple acquired during that period of time.
Money is a common point of contention during marriage, but it can be even more so during divorce. Individuals may feel as if they are hyperfocused on securing their future financial situations, but in doing so often overlook the need for financial focus in the present. Paying close attention to investments during a high asset divorce should be a priority.
Divorce is just as much a financial and legal process as it is an emotional one. The financial implications of ending a marriage can be significant, but it is still possible to minimize undesirable outcomes. For example, couples in Illinois who are divorcing after decades of marriage should pay careful attention to complex assets such as retirement plans. Even the division of something as seemingly simple as a 401(k) can become a foundation for financial security following divorce.
Getting a prenup does not mean that a couple thinks their marriage will not work out as intended. Instead, it is simply a way to make sure that both people and their respective assets are protected should they divorce. A person in Illinois does not need lots of wealth or assets to benefit from a prenup, either. Startup founders, entrepreneurs and investors who have yet to make it big can still protect their current and future wealth.