How Can I Maintain Financial Stability After My Divorce?

 Posted on May 30, 2019 in Divorce

The decision to divorce is difficult for any married couple. Whether it is losing the person you love, not seeing your children as often, or adapting to a new lifestyle, everyone has valid fears when the divorce process begins. Another common concern is about personal finances after you and your spouse split. If your spouse makes a significant amount of money, or if you do not have a college degree, giving up that financial support may feel hopeless.

Division of Assets

Unless you signed a prenuptial agreement before getting married, Illinois has a process when it comes to property and debt in a divorce called equitable division. While this does not mean that each spouse gets an equal share of marital property, the division of assets is done based on what is fair, while taking certain factors into consideration. How assets are divided are based on the length of a marriage, how much each spouse contributed to the marriage, economic and health circumstances, and whether children are involved. When it comes to physical property, premarital assets are usually left with the owner, and marital assets are included in the equitable division process.

In most circumstances, the Court will ensure the less fortunate party has access to reasonable financial resources. For example, a homemaker may retain ownership of the family home to ensure security and consistency for children.

Financial Tips

To ensure you maintain a sense of financial security after your divorce, consider these tips:

• Update Accounts: Married people share many things, including bank accounts. Ensure your own financial stability by creating bank accounts and credit cards in your own name. Review joint accounts to make sure your respective assets are in the correct place, and ultimately, you will want to close any shared accounts. If you fail to do so, your spouse could hurt your credit score if he or she acts irresponsibly with an account that is still in your name.
• Create a Budget: After your divorce, it is time to reevaluate your spending. Get an idea about your post-divorce finances by adding up your personal income and any alimony and child support. Calculate how much it costs to support yourself comfortably and subtract that from your money coming in. If your result is in the negative, it is essential to balance your new budget. You may have to cut out luxuries or big purchases for a while or consider searching for additional income to provide for essentials.

Contact a Schaumburg Divorce Lawyer

When going through a divorce, your future can feel uncertain in many ways, especially when it comes to finances. Contact an experienced Palatine divorce attorney who can explain your rights to marital assets and advocate on your behalf. Call our office at 630-426-0196 to set up an initial consultation today.

Sources:

http://www.ilga.gov/legislation/ilcs/documents/075000050k504.htm

https://www.forbes.com/sites/jefflanders/2012/07/25/seven-must-do-steps-for-women-who-want-financial-stability-post-divorce/#4c27d8076ec2