For many Illinois residents, one of the most challenging aspects of divorce relates to finances. This may be especially true for individuals who did not pay attention to or manage household spending during the marriage. Allowing both spouses to share money management tasks and responsibilities may reduce stress and conflict during a divorce.
If you are getting a divorce in Peoria, you may have wondered how you can prepare for that financial hit. Some divorces are amicable with couples never needing to set foot in court, or at the very least, not for long. However, when there are high-value assets involved, years of marriage that led to entangled ownership, and a breadwinner versus homemaker situation, things might become more complicated.
When individuals get a divorce in Illinois, the most complex parts of the settlement often revolve around finances. When a court grants a divorce, part of the order includes a division of the couple's finances, including both assets and debts. It is important for individuals to understand how debt may affect a divorce settlement.
Couples who are going through a divorce in Illinois must make sure they are aware of all the assets and income the other spouse has. Unfortunately, some spouses hide assets so they do not have to divide them up during divorce proceedings. This is especially true in high-asset marriages. Legally, each spouse needs to fully disclose what he or she has, but it also helps to know how to look for assets the other side may try to hide.
Illinois couples divorcing after their 30s, likely already have some retirement assets to divide. The older the couple, or more specifically, the breadwinner, the more valuable the retirement assets may be. When these retirements plans were first put in place, the couple may not have made provisions for divorce. However, the higher earner now has to consider how the lower-earning spouse or homemaker fares financially on their own.
Many couples who have a lot of assets at stake compose prenuptial agreements to describe how they would like their property divided should they decide to divorce. However, not every couple takes this option, though after tying the knot, some couples may wonder if they should have done otherwise. Fortunately, drafting a postnuptial agreement is an option. Still, any couple should be careful that they do not unintentionally make the postnup unenforceable in an Illinois court of law.
Prenuptial agreements establish rules about asset ownership when a couple enters into a marriage in the event the union ends in divorce. While many people believe these legal documents are only suited to the extremely wealthy, they're quite useful in a wide variety of situations. Forbes offers a few examples of people who should have prenups in place before they marry.
When the subject of divorce crosses someone's mind, they may think about how this major life change could affect their kids or their finances. However, the emotional toll of a divorce should not be ignored either, as it can create serious issues for men and women alike. Aside from depression, anger and stress, some people suffer an identity crisis after their marriage ends. For example, someone may have pictured themselves as a spouse for many years, and when they become single after a divorce they may feel as if they do not know who they are.
Once a Peoria couple decides to call it quits on their marriage, they have to choose what to do with their home. According to Nerdwallet, the first step is to assess the value of the home. Once that is accomplished, the equity of each spouse can be determined, which is the amount that each spouse owes on the home. From there, the spouses must make a choice regarding the future of their home.
When you choose to get a divorce in Peoria, you may be prepared to have to split the value of a number of your assets with your spouse. One of the assets you may not be prepared to share, however, is your 401k. The funds in your 401k are the result of your employment; why, then, would they be considered a marital asset? First off, you should understand that the entire amount of your 401k may not be subject to property division; only the amount contributed to it during your marriage is. Since these contributions are made from your income, they are considered marital property.