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Financial Issues to Consider in Divorce

Divorce is often one of the most traumatic and uncertain events in an individual’s life. As if the emotions of a relationship changing or ending aren’t enough, couples often find their stress compounded by all the potential financial implications of a divorce. It’s imperative that divorcing couples consider several significant financial issues when determining what their divorce will look like when it’s over. Having experienced divorce lawyers in Tinley Park on your side to help with these considerations will typically put you in a much better financial situation when you start your new life.

Debts

In a divorce situation, you are generally responsible for your debts, and your spouse is responsible for theirs. However, most states, including Illinois, equally divide debt incurred jointly during the duration of your marriage. Your divorce decree will show the actual division of those debts. Before your divorce, it’s helpful to:

  • Draft a list of all your debts, including mortgages, credit cards, auto loans, retirement plan loans, loans payable to family members, and all other loans
  • Work on building your own credit record while you are still married by having credit in your name—it’s common to have shared debt on a mortgage, but it’s best if you have your own credit card
  • Close joint credit card and bank accounts as soon as you know your divorce is pending, then open your own if you don’t already have them
  • Pay your credit card balances as soon as possible, especially before the divorce is finalized

Income Taxes

Your income tax filing status will change since you can’t file a return using the “married, filing jointly” rates. If you have kids, your divorce decree should establish who will be allowed to claim your children as dependents. Additionally, if you’ve been filing jointly, any IRS claims are likely to be against both of you. Suppose you have problems with past or future tax returns in light of your divorce. In that case, it’s best to talk to a financial advisor or experienced divorce attorneys in Tinley Park.

Health Insurance Coverage

If both spouses are covered under one spouse’s health insurance plan provided through an employer, ensure that the final agreement details how continuation will be provided, if it is to be continued at all. The costs of healthcare are much too high not to consider this issue. Suppose one spouse will be left without health insurance coverage. In that case, this leaves them with an additional and possibly steep financial burden.

Retirement Plans

If you have retirement plans or savings, be sure to consult with seasoned divorce lawyers in Tinley Park. Many different financial considerations need to be made, some of which you may not even be aware of on your own. For example—if an IRA or one spouse’s retirement plan assets are transferred to the other spouse as part of the property division in a divorce, you should consult with a tax professional to make sure the tax deferral stays in effect.

Do You Have Financial Questions About Your Divorce? Our Knowledgeable Divorce Attorneys in Tinley Park are Here for You

Whether you knew your divorce was coming and had it planned, or it was thrust upon you with little or no time to determine what you should do next, our knowledgeable divorce lawyers in Tinley Park are here for you. We can help you understand the financial issues you will face during and after your divorce and prepare the way for a bright financial future, no matter how bleak your divorce might seem. Contact Demetrios N. Dalmares & Associates today for a free divorce consultation. 

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