Divorce can be a complicated and emotional process, and mistakes made during this time can have significant consequences. That is why it is crucial to understand common mistakes to avoid, so you can be better prepared for what lies ahead.

In this blog post, we will cover some of the most common mistakes people make during a divorce and offer tips for avoiding them. Whether you are just starting the divorce process or are in the midst of it, this information will be valuable to you.

Mistake #1: Failure to Disclose All Assets and Liabilities

Another common mistake in divorce is failing to disclose all assets and liabilities. Full disclosure of assets and debts is required by law, and hiding or failing to disclose assets can have serious legal consequences. Failure to disclose all assets and liabilities can result in a court invalidating the entire divorce agreement and may lead to financial penalties.

Most people who hear about prenuptial agreements think that these legal contracts are used by engaged couples who have high assets in order to protect those assets should the marriage not work out and they divorce. And while that is true, what is also true is that prenuptial agreements can also be used to protect one spouse from the other spouse’s debt should they divorce.

How Much Debt Are We Carrying?

Years ago, most people did not “live on credit.” Other than the mortgage on their home and vehicle loans, cash was king. If you wanted to purchase a large ticket item for your home, take a vacation, etc., you saved your money and then paid for the item in cash.

In the late 1960s and 1970s, retail stores began offering customers store credit cards, where the customer could charge their purchases and pay the balance off over time. Although there were some bank-issued credit cards during this time, MasterCard, Visa, and other major cards did not really gain popularity until the 1980s. Today, the average American owes approximately $5,200 in credit card debt.

When a couple is planning their wedding, they are usually focused on their future together and their goals for their married life. Divorce is not usually a topic that comes up during this planning, but national statistics belie that optimism. Although the divorce rate has dropped over the past several years, it still hovers at close to 50 percent. The percentage is even higher for second and subsequent marriages.

This is one reason why engaged couples should have prenuptial agreements on their wedding to-do lists. A prenup is a contract the couple enters into that details what would happen in the event of a divorce. Prenuptial agreements are legally binding contacts and are enforceable, but like many contracts, there may be legal issues a spouse can cite in a divorce that would nullify the prenup.

Contents of a Prenuptial Agreement

A prenuptial agreement can address several issues that the couple would need to agree on in a divorce, essentially stating the rights and responsibilities of each spouse in the event of a divorce. Some of the issues that can be included in a prenup include:

When preparing for marriage or divorce, both spouses may decide to protect their assets through prenuptial or postnuptial agreements. By creating documents that outline the division of assets in the case of divorce, couples may be able to prevent highly contested divorces. These documents are in both parties' best interest because collaborative divorces are typically faster and less expensive than contested divorces. If you and your spouse are planning your marriage and how assets would be divided in the case of divorce, it would be in your best interest to discuss your plans with an experienced family law attorney. 

Prenuptial vs. Postnuptial Agreements

As indicated by the prefix of each word, prenuptial agreements are drafted before marriage, whereas postnuptial agreements are drafted after a marriage. There are a few reasons that couples may decide to draft these agreements. Firstly, having a prenuptial or postnuptial agreement can help protect independent finances for each spouse. It can also declare which assets belong to a corresponding spouse. In the case of separation or divorce, this can prevent court litigation over contesting belongings, finances, and other assets. Prenuptial and postnuptial agreements typically include who will retain the home, how joint finances and businesses will be divided, and how other material assets will be divided. 

Which is Better?

Deciding whether a prenuptial agreement or a postnuptial agreement is best for you and your spouse is entirely up to your unique relationship. Each marriage is different and comes with various financial assets and joint partnerships. It is in both spouses' best interests to discuss whether a prenuptial or a postnuptial agreement is the best for your relationship with a lawyer. Family law and divorce attorneys are skilled in analyzing finances and other assets and the relationship structure between partners. A lawyer may help guide you towards which agreement is best. However, here are some tips to help you begin deciding on whether a prenuptial or postnuptial agreement is suitable for you:

Premarital agreements are legal agreements between a couple prior to their marriage. Within a premarital or prenuptial agreement, many couples will lay out individual rights and responsibilities that each spouse will have during the marriage. These agreements are extremely useful in high asset marriages to help dictate property agreements and have proven to be useful if a marriage comes to an end. Engaged couples who are looking to create a prenuptial agreement before their wedding date should reach out to an experienced family attorney who is prepared to help navigate this process.

Reasons to Create a Prenup

Prenup agreements are most commonly portrayed in the media as contracts created by rich families to ensure their wealth stays in the family in case of a divorce. However, there are a plethora of reasons that couples decide to create a legal premarital agreement prior to their wedding. Typically, the reasons are unique and personal to each couple. There are often overarching themes in the reasons. Here are some of the most useful reasons to create a prenuptial agreement in the state of Illinois:

• Lay out the division of finances and bills during the marriage
• How to divide assets and property in the case of divorce or death
• How spousal support would be divided in the case of divorce 
• Creation of wills and trusts in the case of death 
• Ensure parental rights if/when children are introduced into the marriage 

How to Create a Prenup 

Considering that a prenup is a legal document, the state of Illinois has specific criteria required when creating and signing premarital agreements. The Illinois Uniform Premarital Agreement Act’s requirements for a legitimate prenuptial agreement that can be upheld in court include: