Splitting up with one’s spouse can have a drastic effect on one’s emotions along with one’s finances. It is natural for a person in Illinois to want to get the divorce process over and done with as soon as possible. However, rushing through the process can be costly in the long run.
One of the first important steps to take when going through divorce is to examine all of the assets in existence. These include current accounts along with noncash assets and future interests, such as start-up stock options, pensions and business interests. Any income that was earned prior to the marital split-up but will be received afterward, such as bonuses, must also be included.
One should also pay attention to the tax implications of various divorce settlements. This involves comparing nontaxable assets with taxable ones. For instance, the party getting the $200,000 marital home faces different tax circumstances compared to the party getting an individual retirement account, or IRA, with $200,000 in it. The tax on a traditional IRA makes the IRA not worth what it appears to be worth on paper.
Finances remain one of the biggest areas of contention during the divorce process in the state of Illinois. However, if two divorcing individuals are able to see eye to eye on financial matters, they may be able to achieve a mutually satisfactory outcome without further court intrusion. Appropriate legal guidance may help a person to fight successfully for his or her best interests during this type of family law proceeding.
Source: thefiscaltimes.com, “6 Money Mistakes to Avoid When You’re Getting a Divorce”, Kelli B. Grant, Aug. 26, 2016