Divorce decisions are often the most expensive decisions people make. Just as a person may work hard over the years to build assets and achieve a healthy financial situation, it is important for an individual to tackle property and asset division during divorce strategically, thinking about the big picture. A few tips may help people in Illinois to make divorce-related decisions, while taking into consideration the financial consequences of those decisions.
In general, divorce usually cuts wealth that has been accumulated over the years in half. At the same time, a divorcing individual may notice that his or her expenses are magnified by a huge margin. This may particularly have a big impact on one’s retirement planning goals.
It is wise to enter a divorce with the assumption that marital assets will be divided roughly equally. It is also important to note that any property that was acquired during the marriage is subject to division, since it will likely be considered a marital asset. Types of property subject to division include bank accounts, vehicles, real property, investment accounts, 401(k) plans and traditional pensions. Any property that ended up being commingled, even though it was initially separate, will also likely be treated as a marital asset. Even incomes earned during the marriage are considered marital assets.
Tackling the division of assets in Illinois can be overwhelming and even frightening, as the decisions one makes during the divorce proceedings can have long-term implications. If two divorcing individuals are able to work together amicably, they may be able to make mutually beneficial decisions for themselves. Otherwise, a judge will have to get involved and decide how their assets will be split for them.
Source: fa-mag.com, “The Grass Isn’t Greener: Considering The Financial Ramifications Of Divorce“, Joseph E. Cordell, April 20, 2015