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Tag Archives: money and divorce

Wheaton divorce attorneysDivorce can make a massive impact on your life, especially when it comes to financial matters. Thankfully, there are ways to mitigate the risks. Learn more about managing your finances while pursuing an Illinois divorce in the following sections. 

Create a Pre- and Post-Divorce Budget 

Divorcing parties are often aware that a new budget is necessary. One budget may not be adequate, however. You may need both a pre- and post-divorce budget. The first (your pre-divorce budget) addresses how you and your spouse will handle any joint accounts in the months leading up to the divorce, along with your own personal financial responsibilities. The latter (the post-divorce budget) focuses on how you will manage your financial obligations once the divorce has been finalized. 

Consider Paying Down Debt Before the Divorce 

While it may be tempting to wait to pay down your debt until after receiving your divorce settlement, such a plan can create unnecessary financial risks for you once the divorce has been finalized. Interest rates may increase the amount owed. Accounts may be sent to collection agencies, which can hurt your credit. Lastly, your settlement amount may not be enough to cover any overdue balances. Alternatively, by using the settlement to cover the debt, rather than forge a new future, you could increase your risk of long-term financial issues. To avoid such an issue, consider paying down your debt before filing for divorce. 

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Wheaton divorce lawyersEven in the simplest, most straightforward of divorces, the division of assets can lead to contention. In those with complex assets, the stakes are inevitably raised. Ensure you get your fair share during your Illinois divorce by understanding how complex assets are divided. 

What Are Complex Assets? 

For most assets, the value is straightforward. As an example, consider the balance of your bank account. Its value does not change, based on circumstance or the market. Instead, it is a real asset; its value is the displayed amount. Complex assets work differently. Their value may be difficult to determine because the value is constantly changing, based on market trends or future value (stocks, bonds, retirement accounts, real estate, etc.). Other assets are based on obscure factors, such as buyer interest or individual appraisers (artwork, jewelry, collectibles, etc.). Needless to say, dividing assets like these can be difficult and complex. 

Determining Your “Fair Share” in an Illinois Divorce 

Illinois is considered an equitable distribution state, meaning each party gets a “fair share” of the marital assets. In mediation and other alternative dispute resolution situations, the parties negotiate and agree upon their shares. In court, a judge makes the decision. There is no “right” or “wrong.” Instead, there are parameters used to determine what a spouse may be owed in divorce. Some of these factors include the: 

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Illinois divorce lawyersOut of all the assets that a couple owns, the house tends to be the most valuable. It only makes sense for parties to struggle when deciding what to do with it while going through a divorce. Its ability to cause contention between the parties is also understandable, yet arguments can cloud judgment. Stop fighting and start considering the pros and cons of selling your home in a divorce, which are outlined in this post. 

Reasons to Sell Your Home in a Divorce (and the Potential Benefits)

A house is more than just a building. It is full of family memories. It is, perhaps, where you raised your children. It is your home, and possibly the only connection you have to a happier time. As such, discussions about selling it may be triggering for either you or your spouse, yet there are many situations in which this might be the most beneficial route. 

It may be the only asset of value in your marriage, which means it may be the only way to ensure you have the money to start over. The cost of maintaining it (mortgage, maintenance, HOA fees, etc.) may be too much of a burden for either you or your spouse to bear. Selling it could allow you to pay off the mortgage and still have a little bit of money left over. 

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Illinois divorce lawyersMoney can be one of the greatest sources of contention in a divorce - and for good reason! There are some parties who are just dead set on getting more than their fair share. They will even go so far as to hide money and other assets from their unsuspecting spouses. Is your spouse participating in this underhanded (and illegal) activity? Look for these signs.

Your Spouse is Secretive or Defensive About Money 

If your spouse gets defensive whenever you talk about money or finances, it could be a key sign that they are trying to hide something. Alternatively, they may be secretive about their earnings, perhaps even going so far as to revoke your access to certain financial accounts. Some will even hide secret purchases (a commonly used tactic in asset hiding). 

Your Spouse Intercepts Bills and Financial Statements 

An asset hiding spouse does not want you to know where the family’s finances stand, so they will go to extreme lengths to ensure you never see a bill or statement. They may even have a secret post office box for receiving these pieces of financial information. 

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Illinois divorce attorneysThough divorce may be the right choice for a marriage, it is far from the easy one. It can be mentally and emotionally draining. As a complex and nuanced legal process, it can also be financially draining if not approached in the right manner. Reduce the risk of significant financial issues during your Illinois divorce by taking these five steps during the preparation phase.

1. Track Your Income and Expenses

Start tracking your income and expenses, as soon as you realize that divorce is inevitable. The more financial information you have, the better. Check bank accounts, stocks and bonds, savings accounts, any investment interests, retirement accounts, and any educational savings accounts that you and your spouse may have set aside for your children. Also, ensure you know exactly how much income you and your spouse bring in each month. 

You’ll also want to take stock of any assets that you and your spouse may own. This can include: 

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Abraham Lincoln A lawyer’s time and advice are his stock and trade. -Abraham Lincoln
Davi Law Group, LLC handles family law, estate planning and real estate matters for clients in Chicago and throughout the western suburbs including DuPage County, Will County, Kane County, Kendall County and Cook County and the cities of Aurora, Bloomingdale, Bolingbrook, Carol Stream, Darien, Downers Grove, Elmhurst, Geneva, Glen Ellyn, Hinsdale, Joliet, Kendall County, Lisle, Lombard, Naperville, Oak Park, Oak Brook, Oswego, Park Ridge, Roselle, St. Charles, Villa Park, Warrenville, Wheaton, Winfield, Woodridge and Yorkville, Illinois.
Warrenville Office
Address28371 Davis Parkway, Suite 103, Warrenville, IL 60555
Phone(630) 657-5052
Fax(888) 350-9195
Wheaton Office
Address1776 S. Naperville Road, Building A, Suite 105, Wheaton, IL 60189
Phone630-580-6373
Fax(888) 350-9195
Chicago Office
Address321 N. Clark Street, Suite 900, Chicago, IL 60654
Phone(312) 985-5676
Fax(888) 350-9195
Joliet Office
Address58 N. Chicago Street, Suite 102,
Joliet, IL 60432
Phone(815) 582-4901
Fax(888) 350-9195
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