What Are the Most Common Financial Mistakes During Divorce?

 Posted on October 03,2024 in Divorce Finances

Financial considerations are often a big part of the conflict between spouses during a divorce. Unfortunately, one spouse often comes out on the losing end of finances for various reasons. One partner may be fed up with the arguments regarding assets, so he or she simply walks away from a fair share of the marital property. In other cases, one spouse may have allowed the other spouse to have full control of the marital finances, so may have little idea of what assets exist.

While it is normal to want to have the divorce over and done with, the decisions you make during your divorce can have long-term consequences. Your future financial well-being is an important part of your divorce. The best way to ensure you receive your fair share of the marital assets is to speak to a knowledgeable Geneva, IL divorce attorney from The Law Office of Matthew M. Williams, P.C..  

Avoiding 15 Common Financial Mistakes Often Made During Divorce

If you are facing divorce, you may also wonder whether your finances will take an unrecoverable hit. While Illinois is an equitable division state that requires all marital assets to be divided fairly, certain issues can get in the way of an equitable division. One way to protect yourself financially during divorce is to be aware of the following financial mistakes that are commonly made during divorce by one or both parties.

1. Not having a good grasp of your marital finances because your spouse pays all the bills and manages the marital money and assets.

2. Failing to keep passwords to online accounts and joint assets.

3. Failing to consider the tax implications of the marital assets you may receive, including the marital home, which also involves property taxes, insurance, and repairs.

4. Underestimating current and future expenses. This is particularly applicable to spouses who do not handle the finances, so they do not have a good grasp of the monthly expenses.

5. Failing to understand that an equitable division of marital assets may not always feel entirely fair.

6. Allowing emotions to rule asset division decisions; for example, while you may want the marital home, the better question is whether you can afford the upkeep, insurance, taxes, and monthly mortgage.

7. Failing to hire experienced professionals to help you figure out how your divorce will impact your finances – now and in the future.

8. Underestimating your responsibility for marital debt – even debt that you had no part in incurring during your marriage.

9. Failing to have a long-term plan for financial security and retirement.

10. Rushing the divorce process: while it is understandable that you want to finalize your divorce, your spouse may take advantage of your desire to have the divorce over and done with.  

11. Refusing to consider alternative dispute resolution like mediation or arbitration.

12. Undervaluing marital assets, particularly complex assets like a business or professional practice.

13. Failing to consider the possibility that your spouse may have hidden assets.

14. Neglecting to ensure you receive your fair share of a retirement account.

15. Handling your own divorce rather than speaking to an experienced divorce attorney who can guide you through the division of assets during your divorce.

It is also a good idea to review your credit report before the divorce so you can ensure your spouse does nothing to damage your credit during your divorce.

Contact a Kane County, IL Divorce Attorney

When your future can depend on the decisions you make during your divorce, those decisions need to be absolutely sound. Having an experienced Aurora, IL divorce lawyer from The Law Office of Matthew M. Williams, P.C. by your side can help ensure that every decision affords you the best possible opportunity for a positive future. Attorney Matthew M. Williams is highly skilled in all aspects of divorce, focusing on mediation and collaborative divorce to make the process easier, more amicable, and less expensive. Call 630-409-8184 to schedule a consultation to discuss your specific divorce issues.