Planning Financially for Your Illinois Divorce

 Posted on January 23,2023 in Illinois Divorce

Getting divorced brings about myriad changes in a person’s life. One of the most significant of those changes is the impact that divorce has on a person’s financial landscape. In many situations, a person getting divorced is going from a two-income household to a one-income household. If you are thinking about ending your marriage, there are some important steps you should take to protect your financial future.

Figure Out Your Budget

It is important to know what your monthly expenses are. Make a list of what your typical monthly expenses are, including your mortgage or rent, electric, heat, internet, phone, vehicle payment, child care, insurance, etc. This list should also include other expenses you may have such as entertainment expenses, vacations, out-of-pocket medical expenses, children’s extra-curricular activities, etc.

Once you have determined what your expenses are, take a look at what your monthly income is, including what it will be once the divorce process is complete. In addition to your income, will you be receiving child support and/or spousal support or will you be paying those obligations to your ex?

Now take a look and see if what you have going out will be covered by what is coming in and what – if anything – will be left over to put towards savings. If there are shortages, consider what areas you may be able to adjust.

Figure Out Which Marital Assets You Want

The marital estate is made up of all bank accounts, retirement accounts, investment accounts, stocks, business interests, real estate, vehicles, and other property the spouses own. Under Illinois law, the marital estate should be equitably distributed between the two spouses.

Another benefit of creating your budget is that it gives you a good insight into whether you will be able to afford the marital assets you think you may want. For example, if you thought you wanted to keep the marital home, it is important to determine if your income and expense ratio will allow you to afford the family home or if you would be better off taking your share of marital assets in liquid assets rather than real estate.

Financial Independence

Once you have made the decision to end your marriage, it is critical to establish your own financial independence. When the divorce process begins, neither spouse is allowed to withdraw or transfer funds from joint bank accounts without the other’s knowledge. Having your own bank account will enable you to begin depositing your income in your own bank account and pay for your own expenses from that account.

Contact a St. Charles, IL Divorce Attorney for Legal Assistance

If you are contemplating divorce, make sure you are legally prepared. Call Weiler & Associates, Inc. at 630-331-9110 to schedule a confidential consultation with one of our seasoned Kane County divorce lawyers to find out what legal options may be the best for your situation.

Source:

https://www.ilga.gov/legislation/ilcs/documents/075000050k503.htm