Protecting Yourself Financially During a Divorce

 Posted on October 09,2018 in Divorce

Even if you have never experienced it, you probably realize that a divorce can take a tremendous emotional toll on a person. You may also be familiar with the basic idea of dividing marital property. What may not be as obvious from the outside, however, is the potentially devastating effects a divorce can have on the personal financial situation of each spouse, which can be long-lasting and can even result in bankruptcy.

If divorce has become a strong possibility for you and your spouse, there are a few areas of concern that you can address along the way to prevent major financial problems down the road.

Consider the Type of Assets

The division of marital assets is an often contentious part of the divorce process. Although Illinois is equitable distribution state, meaning each spouse’s allocation should be fair, not necessarily equal, you and your spouse will probably try to reach a fairly even agreement. You should keep in mind, though, that certain assets are not as easily converted to cash in the event of unforeseen expenses. For example, if you got to keep the family home while your spouse was allocated an investment account with similar value, you may struggle to sell the home if you were to ever need to do so.

Do Not Forget Debt

It is very easy to focus on the particular assets and property that you want to receive following your divorce. You must remember, though, that debts and obligations are part of the marital estate as well, and without careful consideration, they could have a dramatic impact on your financial future. Make arrangements with your spouse regarding which of you will be responsible for what debts. Develop a plan, as well, for ensuring that each of you lives up to your financial obligations so that you will not be damaged by your ex-spouse’s actions.

Consider Mediation

The costs of the divorce process itself can often create challenges. If you and your spouse are determined to fight fiercely over every small detail, attorneys’ fees, court costs, and other expenses will continue to add up, potentially reaching tens of thousands of dollars. You may be able to limit divorce-related costs by committing to cooperation early in the process. By working with a mediator and negotiating the terms of your own divorce settlement, you will have greater control of not only the financial aspects of the proceeding but also of the specifics of the final agreement.

An Attorney Can Help Prevent Costly Mistakes

While you may be concerned about the expenses involved with hiring legal counsel, the right lawyer can potentially help you save money in the long term. All it takes is a single missed element in a spousal support proceeding or an unfair property settlement, and you could stand to lose thousands of dollars. To learn more about how we might be able to assist you, contact an experienced Lombard divorce attorney. Call 630-426-0196 to schedule a confidential consultation at A. Traub & Associates today.

Sources:

http://time.com/money/4243084/money-divorce-rules-breakup/

http://www.abc10.com/news/local/getting-divorced-how-to-end-your-marriage-without-sacrificing-too-much-money/37569799

http://www.investopedia.com/articles/pf/07/split_finances.asp