Divorce in Illinois can naturally lead to heartache, but it can also be painful financially. This is especially true for a couple with high-value assets. A couple of tips may help people to protect their financial resources during the process of divorce in Illinois.
First, it is wise for people to protect themselves and their families with insurance. Following the dissolution of a marriage, purchasing new insurance is sometimes not high on the priority list for a person. Single parents, however, might need insurance more than ever before in order to better cope with unexpected life changes. Life insurance is essential and so is the creation of a will.
It is also wise to re-examine one’s retirement plans following divorce, as these plans will likely have changed. A tax adviser may help one to comprehend the state and federal laws regarding the division of retirement accounts. A divorce agreement that addresses the division of a retirement account should ideally spell out that the account is to be divided, not based on a dollar amount, but rather based on a percentage. If a dollar-amount basis is used, one of the individuals may experience a huge loss if the market experiences changes.
Although finances can be challenging to address as part of a divorce in Illinois, an applied understanding of the law may make addressing various matters, such as asset division, easier for an individual. It is essential for a person to know his or her rights, so he or she can pursue his or her fair share of assets. Both parties have the right to pursue their best interests, while still taking into consideration the other party’s needs.
Source: msnewsnow.com, “7 ways to protect yourself financially in a divorce”, Andrew Housser, July 18, 2016