Divorce and Finances: What to Expect

 Posted on December 00, 0000 in DuPage County divorce lawyer

Divorce involves more than the dissolution of a marriage. It is a complex legal process, and many couples will experience financial hurdles on their way out of the relationship.

Deciding to divorce is a serious consideration, and protecting your financial interests requires careful planning. One of your first steps should be calling a divorce attorney for advice. Your lawyer will likely look to find out:

•         Whether or not there was a prenuptial agreement;
•         If you and your spouse have children; and
•         The income, assets, and deb of you and your spouse make.

Under Illinois law, these factors—and many others—may affect your strategy for securing your financial future. Because this is such an intricate process, hiring a divorce attorney may ultimately save you money over the long term.

Reviewing Your Finances

Before filing divorce papers, it is important to review your finances—preferably with a divorce attorney. This review should include an income assessment, as well as a list of all assets. Understanding your liabilities and debts is also vital in creating your full financial picture.

In addition, you must also be aware of your potential tax liabilities. Your attorney may advise a consultation with a financial planner to reduce the amount of tax you pay after the divorce. Both spouses may be required to pay taxes and fees resulting from an audit of a jointly-filed return.

After the divorce in finalized, you may be responsible for taxes related to the assets you receive in the settlement. A tax professional can explain the impact of these taxes and help you plan a realistic budget and financial strategy.

Making “Financial Space” for a Divorce

Going into a divorce with little debt and few financial obligations can make the process somewhat simpler. Before filing, it helps if you and your spouse pay off any debt from credit cards, personal loans, auto loans, and back taxes.

If you would like to speak with an experienced DuPage County divorce lawyer, contact the Law Office of Matthew M. Williams, P.C. at 630-409-8184 today. Mr. Williams will work with you to examine your finances and help you avoid making mistakes that could compromise your interests.