5 Common Questions About Financial Planning Before an Illinois Divorce

 Posted on February 07, 2020 in Divorce

The decision to end a marriage can be emotionally, financially, and even physically devastating. A trusted therapist may help ease emotional stress, but what about the worries regarding finances? Regardless of whether your divorce is amicable or tumultuous, you will need to understand how to protect your rights to the marital estate. If you are facing a divorce and are unsure how to protect your financial interests, you should speak with a knowledgeable family law attorney to explore your potential next steps. In the meantime, here are answers to some of the most frequently asked questions about finances during divorce:

How Much Will a Divorce Cost?

There are many expenses associated with the divorce process. You will be required to pay a variety of court costs and filing fees, and the costs of hiring and working with an attorney throughout the divorce process may add up to several thousand dollars or more. In addition, there are a variety of other ways that legally ending your marriage can impact your finances, including:

• Division of assets and property: When a couple’s assets and property are divided, one of the parties may need to buy new items. For instance, if a couple shared a vehicle or a home, the individual who did not receive the car or house in the divorce must then purchase his or her own vehicle. Transportation and housing can place a heavy burden on a newly divorced person’s finances.

• Child support or spousal maintenance: These costs can also impact the budgets for both the paying and receiving parties. They are typically not one-time costs but instead are distributed on a monthly basis.

Do I Need to Pay Off Debts First?

If you and your spouse accrued debt over the course of your marriage, these debts must also be divided during your divorce proceedings. Debt can negatively impact your finances, especially if one ex-spouse does not cover his or her portion of a mutual debt, or if one party assumes the majority of the debt. If possible, reducing debt prior to your divorce can help reduce or eliminate high credit card payments while living on one income.

Will Divorce Affect My Credit Score?

In the majority of cases, the divorce decree typically does not alter a person’s credit score directly. However, the effects of divorce can impact a person’s credit score in the following situations:

• Large debts are accrued, especially if the debt-to-income ratio changes dramatically after divorce.

• An ex-spouse fails to pay on loans that were co-signed.

• An angry spouse takes out loans or credit cards using his or her spouse’s information.

When going through a divorce, you should take care to monitor your credit score to reduce the risk of unwanted loans taken out in his or her name.

Do I Have to Sell My House?

The decision to keep or sell the marital home can be complicated. Some people may not be interested in keeping the house because of unpleasant memories, while others may want to remain in the house for sentimental reasons. When asking for any asset, you should consider the financial implications of those assets. For instance, the financial upkeep of a large house on one income may be too much of a burden.

What Kind of Professionals Should I Consult?

Because financial matters can become very complicated, financial advisors may be able to provide advice specific to your unique situation. In some cases, forensic analysts may play a pivotal role in determining child support, division of assets, or even spousal maintenance. 

The breakup of a marriage can also cause emotional suffering, but a therapist can help ease the psychological burdens. Most importantly, a family law attorney experienced with handling divorce cases can make sure that your rights are protected throughout the divorce process.

Contact a Wheaton Family Law Attorney

The financial ramifications of a divorce can create long-lasting effects, which is why it is essential to have a team of professionals working diligently on your side. At A. Traub & Associates, we are committed to protecting the best interests of our clients in all kinds of family law matters. It is imperative that you understand the best ways to achieve success in your divorce settlement. To request a confidential consultation, call our accomplished DuPage County divorce lawyers today at 630-426-0196.

Sources:

https://www.experian.com/blogs/ask-experian/how-divorce-can-impact-your-credit-scores/

http://www.ilga.gov/legislation/ilcs/ilcs5.asp?ActID=2086&ChapterID=59