Going through the divorce process can have a major impact on a person's finances in Illinois. Unfortunately, making missteps may make this type of family law proceeding even costlier. Several mistakes may be avoided during divorce with the help of proper legal and financial guidance.
First, it is important to closely examine all assets that are jointly held. Assets about which a person does not know cannot be factored in during negotiations for a just settlement. It is wise to look not only at current non-monetary assets and accounts but also to look carefully at future interests, such as start-up business stock options, business interests or pensions.
Paying attention to taxes is another important part of navigating the divorce process. For instance, a spouse who is getting a $500,000 house faces different tax burdens should he or she decide to sell the home than does a spouse getting distributions from a $500,000 IRA, especially over a period of time. Taxes have a significant impact on an asset's true value in the end.
Although divorce can understandably be overwhelming not just emotionally but also financially, mediating or negotiating the divorce may help a couple to reach a settlement that is mutually satisfactory, allowing both to avoid the stress of litigation. If two divorcing individuals cannot see eye to eye when it comes to how to split their assets and property or other important matters, an Illinois divorce court will have to tackle these issues for them. The outcome in this situation may not be what either or both divorcing parties would have wanted.
Source: cnbc.com, "Breaking up is hard to do: Protecting assets in divorce", Kelli B. Grant, Jan. 17, 2016