Although statistics indicate that the divorce rate is declining across most age groups, couples over the age of 50 are ending their relationships at an unprecedented rate. In fact, rates have more than doubled over the last decade, and it is leaving many soon-to-be retirees at risk for future financial troubles. Learn how you can mitigate against such issues, and discover how assistance from our seasoned divorce lawyers can help. 

Understanding the Potential Effects of a Gray Divorce

Divorce can be costly at any age, but those who are nearing the end of their working years have less time to recover from the financial toll that a divorce can have on their savings and retirement accounts. Marital assets must be equitably split between the parties - and that can include everything from jointly acquired inheritances and co-mingled premarital assets to retirement accounts and businesses that were established during the marriage. 

Student loan debt is currently at an all-time high in the United States ($1.5 trillion), and it is creating excessive financial stress for married couples all over the country. In fact, a survey of divorced couples revealed that student loans were a factor in one-third of all failed marriages, and a total of 13 percent specifically blamed student loans for the end of their relationship. How are these debts divided when a couple pursues a divorce, and how can a seasoned divorce attorney help protect your financial well-being during the process? The following information explains. 

How Student Loan Debt is Divided in an Illinois Divorce

Debts, like assets, are divided equitably in an Illinois divorce. What this essentially means is that the assets, income, and future earning potential of each party is considered when determining how the debt should be split. The one exception that may apply is if the debt was incurred prior to the start of the marriage; in this instance, it is typically considered pre-marital debt, and the owner of the loan is usually responsible for repaying it on their own. 

Divorce can significantly impact the mental, emotional, and financial well-being of any child, but those who have special needs’ are at an especially high risk. When one takes into account that an estimated 10 percent of the population has a family member with special needs, and the risk of divorce is significantly higher for them when compared to the general population (an estimated 86 percent compared to 50 percent), the importance of proper divorce planning becomes clear. Learn more about how to approach the process in the following sections, and discover how a seasoned divorce lawyer can help to improve the overall outcome of your case. 

Understanding What Could Be At Stake 

Minor and adult children with significant disabilities often need a lot of support from their families, health care professionals, community, and government. Unfortunately, if their parents go through a divorce and the process is not approached carefully, it may render the child ineligible for many of these types of assistance. As a result, the physical, mental, or financial well-being of the child may be negatively impacted. 

When it comes to divorce, parties often wonder when is the best time to file. Some make their decision based on circumstance (i.e they are fighting more frequently). Others base it on emotion (which some believe to be the driving factor behind the peak divorce times each year). While neither is necessarily “wrong,” they are not the best determining factor for determining when to file. Learn what determining factor may give you the best possible chance at a favorable outcome in your Illinois divorce, and discover how a seasoned attorney can help you prepare for the process. 

Basing Your Decision on Financial Standing 

The end of a marriage can be emotional and tumultuous, but basing your decision on emotional and circumstantial factors alone can leave you (and your spouse) at risk for financial devastation. Part of this can be attributed to the divorce process itself, which is financial, rather than emotional or fault-based. Having a one-income household or being in the dark about your financial situation can further exacerbate the problem. Thankfully, if you base your decision more on your financial standing and readiness, rather than other factors, you can mitigate many of the money-related risks that are commonly associated with a divorce. 

Although a divorce does not have to affect your credit, it can. The possibility of reduced income, moving expenses, and actions or inactions of your spouse are all possible causes, but once the divorce is finalized, there is only one real solution: rebuilding your credit. Learn more about how to do this in the following sections. More importantly, learn how a seasoned divorce lawyer could reduce the chances that you will experience adverse credit issues during your divorce. 

Make a Plan - Jointly and Independently

Perhaps one of the best ways to mitigate the risks of credit issues during and after your Illinois divorce is to sit down with your spouse, take an inventory of your finances and debts, and develop a plan. Discuss your options, such as: