This blog post marks the conclusion of our three-part blog series discussing critical financial issues that must be considered by anyone facing divorce. Anyone in Illinois who is considering divorce is well-advised to consult with a divorce attorney to learn more about how these issues and others may affect their financial wellbeing.
In Illinois, if one spouse inherits or is gifted any money or property during the marriage, that property is considered to be non-marital property, and it will remain the sole property of the spouse receiving such gifts, provided that the gift or inheritance begins and then remains titled to the spouse or in a bank account that is solely in the name of that spouse. If the inherited money or property is placed into “co-ownership” with the other spouse, such as by placing it into a joint checking account or having both names placed on the deed of the property, then the inheritance or gift may be considered a gift of the marriage, and therefore the character of the money or property may be changed to be considered a marital asset.
Under Illinois law, marital assets are subject to division by the court while taking other factors of the case into consideration. In some cases, property division is 50-50, but is not necessarily so in every case. If there is a significant disparity in both parties’ incomes, or if there are health issues or other factors present, the division may be different.
Divorce can bring about many financial issues, adding to what can already be a tense, emotional situation. The bottom line, however, is that divorce can have a serious impact on a person’s economic situation, which is why it can be essential to have a skilled Illinois divorce lawyer, such as those at Nottage and Ward, working on your behalf to protect your financial future. To have your financial questions answered by one of our experience attorneys, call 312-332-2915 today.
This blog post continues our discussion of important financial issues that anyone facing divorce should reflect upon, particularly with the counsel of a highly trained lawyer that has experience with family law. It can be an unwise decision to begin the divorce process without taking these factors into consideration.
Your Credit Score
If you do not have a good credit history, it may be worsened by a divorce. To open a credit card, rent an apartment, or even interview for some jobs a credit report is often needed. Depending on how damaged your score is, you may not be able to live to the standard of living you were accustomed to prior to the divorce. Depending on the situation, it may be worthwhile to wait for some time to divorce, if the split is amicable, in order for you to work on increasing your credit score. In some cases, if one party has serious credit damage, it may be in their best interests to attempt to negotiate to keep the house or vehicle so they do not have to face creditors any time soon.
If minor children are involved, a divorce may become even more complicated. Custody and visitation rights will need to be settled, and financial support arrangements will have to be implemented. You and your soon-to-be ex-spouse will have less combined income with which to support your children, since you will both now have living costs separate from one another. There are other important financial aspects to consider if one or more of your children will soon go to college. However, one benefit of the divorce may be that your children could be eligible for student loans and grants that otherwise may not have been previously eligible for.
If you are considering divorce in Illinois, you may wish to consult with a Chicago divorce attorney to learn more about the process and how it could change your financial situation. Contact the lawyers at Nottage and Ward to find out more by calling 312-332-2915 today.
Check back with our blog for the conclusion of our three-part blog series.
There is much to be considered before a person decides to divorce their spouse. Divorce can be a long and difficult process, and many don’t understand that it can also inflict great financial damage to both parties. There are better or worse times to get a divorce, with regard to finances and both parties’ specific circumstances. Working with a skilled family law attorney can ensure that anyone who is considering divorce will understand the impact a divorce may have on their wallet. This is the first part of a three-part series that will discuss financial factors that must be taken into account by those facing divorce.
The Real Estate Market
First, getting a divorce during an unstable real estate market can have unintended consequences. In a “hot” market, you may be able to capitalize on your home’s value and quickly sell it; however, when it is “soft” and there is a surplus of homes on the market, you may burn through the equity in your home if you are forced to sell it due to divorce. Each person’s situation is different; however, it may be advantageous for some to have a divorce settlement in which one party stays in the home while the other party takes other assets to compensate for their share of the home’s equity. Doing so avoids selling and moving expenses, as well as real estate fees and land transfer taxes, among other costs.
Second, the economy must be considered, as its overall state may impact the financial challenges a divorce may bring about. A divorce may require one or both parties to rent or purchase new homes or vehicles, or even change occupations. In an unstable economy, all of these issues can become more difficult. Credit may be harder to obtain and jobs may be in short supply. However, in a more robust economy, these issues may be easier, but large purchases like a home, may become quite expensive.
It can be an overwhelming decision to divorce, and starting the process can raise many questions. To learn more about how a divorce may impact your finances and other areas of your life, call the divorce lawyers in Chicago at Nottage and Ward. We can help you determine what options would be best based upon your finances and situation. Call 312-332-2915 today.
Please continue to check back with our blog as we continue this series.