Dealing with Financial Loss After an Illinois Divorce

Wheaton divorce lawyersMost people recognize that divorce can be an emotionally painful process, but the financial complexities and challenges of this process are often overlooked. When this happens, it can place parties at an increased risk of experiencing financial devastation after a divorce. Learn how to mitigate your risks in the following sections, and discover how you can best deal with the financial loss that may occur during your Illinois divorce.

The Risk of Financial Loss in Divorce

Not all parties run the risk of financial loss in divorce, but it is an exceptionally common issue. Couples that have children, parties engaged in a high-asset divorce, and disadvantaged spouses tend to have the highest risk. However, even low-income couples, couples without children, and two-income households need to prepare for the possibility of a financial loss. More specifically, divorcing parties should prepare, long before the start of the divorce, to smooth the transition. Of course, not all parties have this luxury; some may not even be aware that a divorce is about to start. In these situations, careful planning and the aid of an experienced legal professional are critical to reducing the impact of a financial loss during your Illinois divorce.

Mitigating Your Risks in Divorce                              

If parties have the time to plan for a divorce, and if the relationship is amicable enough to create a debt elimination plan, parties are encouraged to work together to minimize the impact of any financial losses that they may experience. Otherwise, divorcing parties are encouraged to take small but critical actions that can improve their financial situation, both while the divorce is underway, and long into the future. Such actions could include:

  • Setting small, attainable financial goals;
  • Ensuring the marital estate is accurately valued;
  • Gaining a clear understanding of your overall financial picture (assets, debts, goals, etc.);
  • Creating a savings plan;
  • Re-evaluating your financial goals and making new ones;
  • Freezing discretionary and unnecessary spending;
  • Increasing your income or adding additional streams of income (i.e. a home business);
  • Downsizing to ensure you are not living above your means; and
  • Keeping a financial journal to monitor goals, spending, and progress.

Our DuPage County Divorce Lawyers Can Help

When going through a divorce, it is critical that you have a clear understanding of how your finances will be impacted. Stock, Carlson, Oldfield & McGrath, LLC, can analyze your situation, explain your options, and assist you in pursuing the most favorable settlement possible for your case. Get the representation you deserve. Contact our DuPage County divorce lawyers at 630-665-2500 and schedule a personalized and confidential consultation today.

Source:

https://www.usatoday.com/story/money/personalfinance/lifestages/2017/05/25/divorce-wiped-me-out-financially-heres-how-bounced-back/102047912/

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