A Simple Guide for Sorting Out Your Finances in an Illinois Divorce

DuPage County division of assets lawyerMany people who get a divorce state that finances were the reason or at least played some part in the breakdown of the marriage. For those couples–and many other couples–the stress of money does not stop there. Many divorces are also quite contentious and filled with anxiety over the couple’s financial issues. Most couples have their assets intermingled in some way, and when they get divorced, they have to figure out how to separate them. Below are a few common financial issues that divorcing couples face and how best to deal with them.

Assessing Your Assets

Not all assets were created equally. Before you begin to do anything involving your finances, you need to understand them. Make a list of every asset you have. These can include:

  • Cash

  • Savings accounts

  • Checking accounts

  • Stocks

  • Bonds

  • Mutual funds

  • Savings bonds

  • Retirement funds

  • Certificates of deposit

  • Home deeds and/or mortgages

  • Vehicle titles/auto loans

  • Any other significant asset

You should be sure to understand how much each of these assets is actually worth before you divide them. In addition, the tax consequences for each asset are different. The funds in your retirement account typically have not had taxes taken out of them, meaning you would have to pay taxes on any distributions you receive.

Dealing With the Marital Home

There are a few options when it comes to dealing with the marital home during a divorce. Either you or your spouse can keep the house and “buy out” the other spouse’s portion or refinance the mortgage; you can sell the house and split the profits; or you can both continue to co-own the house. The easiest way to deal with a home is to sell it, but many people, especially parents, do not want to sell the family home. It is not uncommon for one spouse to keep the marital home and refinance it in his or her name only, relieving the other spouse of the financial obligation.

Investments

When it comes to investments, it is extremely important to put serious thought into your decisions. Though the number value of an investment may seem high, it can actually be lower because of applicable taxes and fees. If you have not been very involved in the investment process during your marriage, you will probably want to work with a financial advisor to determine the best way to address investment accounts. You and your spouse could also choose to liquidate your investment accounts, but this is where taxes and fees may come into play, so you should weigh your options carefully.

Contact a DuPage County Divorce Lawyer

If you fail to correctly address the financial issues in your divorce, you could face serious difficulties as you move on to the next phase of your life. At The Law Office of Matthew M. Williams, P.C., our legal team is experienced in dealing with the money-related aspects of divorce, and we can help you be sure that you are setting yourself up for financial success. Even if you and your spouse agree on most financial issues, you can still benefit from having a knowledgeable Aurora, IL divorce attorney look over your assets and make sure your decisions are in your best interests. Call our office today at 630-409-8184 to schedule a consultation.

Sources:

https://www.forbes.com/sites/jbrewer/2018/08/14/getting-a-divorce-financial-issues-to-consider/#2913862c3087

https://www.thebalance.com/a-guide-to-the-most-common-financial-issues-of-divorce-1289262

https://www.nerdwallet.com/blog/finance/how-to-untangle-your-finances-in-a-divorce/?trk_location=ssrp&trk_query=divorce&trk_page=1&trk_position=6

 

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