What Are the Financial Consequences of Divorce?

 Posted on November 19, 2021 in Divorce

Getting divorced in Illinois is a stressful experience for what can feel like a million reasons. Will you have to move? How will the children handle these changes? What does this mean for your short- and long-term financial health? The answers to so many of these questions are difficult to know until the divorce proceedings get started, and the fear of the unknown can place enormous stress on divorcees.

Although you may not be able to control everything in your divorce, it is crucially important to focus on the realistic impact your divorce is likely to have on your finances. Doing so will help you remain calm and financially stable during the divorce and help prepare you for financial success in the future.

Before Divorce

Before the divorce proceedings start, it is important to take stock of your overall financial picture. In addition to the fact that the divorce will simply require you to collect this information, doing so will also help you comprehensively understand your assets and debts. Savings and checking accounts, retirement accounts, and any vehicles or real estate you own will likely need to be divided as marital property, and you will need to understand how much of your assets you are likely to be left with. If you can, try to save money and prepare yourself to live in a single-income household.

During Divorce

Divorce is a notoriously expensive process, and you may want to adjust your divorce strategy according to your financial resources. Mediation and other alternative dispute resolution processes may help you resolve divorce issues with less assistance from attorneys and other potentially expensive professionals.

However, it is important to remember that taking shortcuts in an effort to save money during divorce may end up backfiring in the long run. It is wise to be budget savvy, but never at the expense of your long-term financial wellbeing. Take the time to negotiate a fair and reasonable asset and debt division, and make sure you understand the tax implications of any proposed settlement.

After Divorce

Many people say that the year after a divorce is the hardest financially. Because many people have to move to another residence, purchase private health insurance, and lose the comfort of a savings account or consistent mortgage payment, the time immediately following divorce can be very challenging. It is important to utilize friends, family, and even public assistance if necessary during this time. Create a budget, spend conservatively, and keep in mind that this period will not last forever.

Meet with a Arlington Heights, IL Divorce Lawyer

Divorce changes so many things about your life, not least of which is your overall financial wellbeing. If you are considering divorce, you may want the help of an Arlington Heights, IL divorce attorney with Cosley Law Office. We will leverage our many years of experience to your advantage, working hard to make the divorce process understandable and straightforward so you will know what to expect. Call our offices today to schedule your free and confidential consultation. Contact us at 847-253-3100.

Source:

https://www.ilga.gov/legislation/ilcs/ilcs4.asp?DocName=075000050HPt%2E+V&ActID=2086&ChapterID=59&SeqStart=6200000&SeqEnd=8675000

https://www.forbes.com/sites/jbrewer/2018/08/14/getting-a-divorce-financial-issues-to-consider/?sh=6ed6cc430871