When all reconciliation attempts fail, a couple might have no choice but to divorce. This is a tough undertaking – both financially and emotionally.
Divorce comes with several elephants in the room. One of these involves untangling the couple’s finances. Long before the subjects of child and spousal support come up, you will need to prepare your finances for life after the divorce.
While each divorce is unique, the following tips can help you prep your finances for your impending divorce:
Keep an eye on your income and expenditures
As soon as it becomes clear that you are headed for a divorce, it is important that you start tracking your income and expenses. This is crucial for two reasons:
- It will help you accurately disclose your marital assets for purposes of property division per Illinois equitable distribution laws.
- It will help you create a working post-divorce budget
Tracking your income and expenses is crucial for litigating child support and alimony awards.
Sever financial ties with your spouse
It is not uncommon for a married couple to operate joint bank and credit card accounts. As soon as you start the divorce process, however, it is important to begin ending any financial ties with your spouse. If you had a joint account, you should consider freezing it until your divorce is litigated and the property divided. And if you had a joint debit or credit card, you need to terminate these contracts with the credit card company. The last thing you want is to learn that your spouse has been secretly withdrawing funds from the bank account or using joint credit cards for personal expenses.
Safeguarding your interests
Divorce under any given circumstance is a complex affair. While it is true that no two divorce cases are identical, taking certain steps can help streamline the process and safeguard your financial interests.