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Palatine finances and divorce attorneyOne of the most common things people worry about when they are going through a divorce is how it will affect their finances, and for good reason. According to a study conducted by the U.S. Government Accountability Office, women experienced a significant drop in their income after divorce--nearly 41 percent, on average. This can be due to a number of factors, but there are dozens of mistakes you can make when getting a divorce that could negatively impact your finances. Here are some common mistakes you should be sure to avoid:

1. Not Being Prepared

One of the most common mistakes that people make with their finances during divorce is not being prepared for the divorce itself. Divorce is a long and demanding process, so being prepared is crucial. Before you begin the process, you should consult with both financial experts and an experienced attorney to make sure you are making the best decisions.

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Palatine divorce attorney financial planningThe end of your marriage is likely to be a traumatic, chaotic time, but taking the time to prepare for your life after divorce will help you begin the next phase of your life on the right foot. One of the key concerns you should address is your finances, making sure that the decisions made during divorce will protect your financial security and ensure that you will be able to provide for yourself and your family. Here are some tips for financial planning during divorce:

  • Gather documents - Be sure to obtain complete records that will give you the full picture of your and your spouse’s finances. These documents may include bank statements, credit card accounts, retirement accounts, investments, mortgages, automobile loans, pay stubs, tax returns, and appraisals of items you own. Fully understanding your financial situation will ensure that assets and debts are divided equitably, and it may help identify any hidden assets.
  • Avoid hasty decisions - It can be easy to make decisions based on emotion during divorce (for instance, one spouse may insist on ownership of real estate because they have an attachment to the marital home), but it is best to take a step back and consider things rationally, ensuring that you are making the right choices to protect your financial interests. It is also a good idea to wait to make any big purchases or changes to your life that may affect your finances.
  • Create a budget - Finances can be strained following divorce, so you will want to be sure to fully understand your income and expenses and prepare for a lifestyle that will meet your family’s needs without causing you to go into debt. If possible, leave yourself some room for flexibility, in case you experience any unanticipated expenses.
  • Speak to a financial advisor - The financial issues that arise during divorce can be complex. An accountant or financial analyst can help you understand the full ramifications of your decisions, including the tax consequences of property division and the best steps to take to protect your financial health.

Contact a Schaumburg Divorce Attorney

Divorce does not have to mean financial ruin or mountains of debt. If you need help reaching a resolution to your divorce that protects your financial security, the skilled attorneys at Anderson and Associates, P.C. can work with you to negotiate a settlement that meets your needs. Contact our Arlington Heights divorce lawyers today at 847-995-9999 to set up a free consultation.

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Schaumburg divorce lawyer, debt during divorce, divorce finances, divorce and budgeting, divorce processWhen you decide to end your marriage by getting a divorce, the process of separating the various aspects of your life from your spouse and establishing yourself in your newly-single existence can be incredibly complicated. During this time, it is easy to neglect your finances, but doing everything you can to avoid debt will help you prepare for a secure financial foundation following your divorce. 

Consider the following tips for understanding and managing your debt throughout the divorce process:

  1. Get your credit report - It is important to understand your complete financial picture prior to your divorce, and obtaining a copy of your credit report is essential for doing so. This will help you identify all joint bank accounts and credit cards, as well as any outstanding debts.

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