How to Avoid Common Financial Mistakes During Your Illinois Divorce

 Posted on March 06, 2020 in Divorce Finances

There are two things that people are usually the most concerned about when they get divorced: their money and their kids. If you or your spouse has filed for divorce, a lot of time and effort may be spent worrying about finances during your divorce proceedings -- but that does not stop mistakes from happening. The money decisions you make throughout the legal process of ending your marriage not only affect the outcome of the divorce, but they can also affect the rest of your life. Here are a few common financial mistakes that are easy to make during your divorce and how you can avoid them:

Not Understanding the Difference Between Marital and Non-Marital Property

One of the first things you must do in your divorce is to determine what assets are and are not subject to division. In the state of Illinois, certain property is considered to be non-marital property, which is typically not divided in a divorce. These can be items or assets that you or your spouse each bought or received as gifts before your wedding.

For the most part, any property acquired by either spouse during the marriage is considered to be marital property, except things such as inheritances, gifts, property that was acquired through the sale of such property, or anything that was excluded from marital property in a prenuptial agreement.

Not Budgeting for Post-Divorce Life

Your financial situation will no doubt change after your divorce. Even if you have a job with a decent salary, you need to look at all of your monthly expenses after your divorce and compare this to your monthly income. If you find that your ongoing costs are more than the income you earn, you know that you have some work to do when negotiating with your spouse over debt and asset division.

Forgetting About Your Shared Debts

Speaking of debts, that is the subject of another mistake many divorcing couples often make. You may be caught up in what you own and who gets what, and this may cause you to overlook any outstanding debts that also need to be divided during your divorce. Do you own a home together? What about vehicles? If these loans are in both of your names, you and your spouse will be legally responsible for repaying these debts, even if one of you is declared to be responsible for the debt. Be sure to look over everything you owe and deal with those accounts accordingly before you finalize your divorce.

Contact a Yorkville Divorce Lawyer

Some of the most important issues that need to be resolved during your divorce are those that involve your finances. As such, these are also matters that may lead to disputes between you and your spouse. At the Law Office of Matthew M. Williams, P.C., we understand how crucial it is for you to make the right decisions concerning your finances during your divorce. Our skilled Kendall County property division attorneys have nearly 20 years of experience in the family law field, and we can help you prepare for financial success after your divorce. Call our office today at 630-409-8184 to schedule a consultation.

Sources:

https://www.forbes.com/sites/davidrae/2018/10/25/divorce-financial-mistakes/#293912a37eda

https://www.moneycrashers.com/financial-mistakes-after-divorce/

https://www.rd.com/advice/relationships/money-mistakes-to-avoid-during-a-divorce/