Getting Divorced? Do Not Neglect These Often-Overlooked Financial Considerations

 Posted on April 19, 2023 in Divorce

There is no doubt that divorce comes with significant emotional and psychological pain. Ending the marriage relationship is heartbreaking, even if the marital breakdown began years or even decades ago. In the midst of the emotional turbulence associated with divorce, many people fail to address crucial financial matters. As you prepare for your marriage's end, do not neglect the following financial considerations.

Both Spouses are Responsible for Marital Debts

You have probably already started thinking about how marital assets, such as bank accounts or personal property, will be divided during your divorce. However, keep in mind that property is not the only thing you will have to divide. Any debts acquired by either spouse during the marriage are considered marital debt.

Marital debt can include mortgages, personal loans, credit card bills, tax liabilities, and more. Some spouses are shocked to find out that their spouse had racked up debt they were not even aware of and are now jointly responsible for.

You May Need to Pay Child Support or Spousal Support

Many people are surprised to learn how expensive support payments can be after a divorce. In Illinois, child support is paid by the parent with less parenting time. Parents who share custody and each enjoy significant parenting time may assume that they will pay little to no child support, but this is not necessarily the case.Illinois child support guidelines base the payment amount on the spouses’ respective net incomes. 

Spousal support or spousal maintenance is less common, but it may still be a factor in your divorce case if there is a significant discrepancy between your income and your spouse’s income. You may be able to negotiate a spousal maintenance arrangement with your soon-to-be ex. However, if you cannot reach an agreement, the Court will use your respective net incomes to determine the amount you are responsible for paying.

Keeping the Marital Home is Not Always Practical

Many divorcing spouses fight tooth and nail to keep the marital home for themselves. However, this is not always practical or advisable. Mortgage payments, taxes, maintenance and upkeep expenses, and other homeownership costs can be overwhelming to handle on your own.

If you are considering whether to keep the marital home or not, consult with an attorney who can help you evaluate your options. In some cases, it is better to avoid the financial responsibility that comes with home ownership and instead sell the home and split the proceeds between the two spouses. However, everything from your employment situation to the market conditions will influence your decision.

Contact our Palatine Divorce Lawyer

As you prepare for your divorce, keep in mind that help is available. You do not have to answer all of these difficult questions on your own. Skilled Palatine divorce attorney Nicholas Richardson can provide trustworthy legal advice and dependable support throughout your divorce case. Call 847.873.6741 for a consultation.

Source:

https://www.forbes.com/sites/forbesfinancecouncil/2022/10/20/the-financial-impact-of-divorce/