For a majority of couples undergoing the divorce process, money is often one of the biggest concerns, as bank account balances following the end of a marriage can significantly impact one’s financial standing post-divorce. Bouncing back from and adjusting to the lifestyle transition that divorce brings about can be difficult under even the mildest circumstances, but lack of proper debt division and asset disputes can further complicate each party’s attempt to overhaul their finances.

Divorce Debts and How They are Handled in Illinois State

The Illinois Marriage and Dissolution of Marriage Act includes debts and other standing obligations as financial matters to be considered among the division of marital property. The law defines “marital property” as any property (or debts) acquired by either spouse after the marriage took place. This means any joint loans, credit lines, or accounts opened in both spouse’s names are marital property and are considered the responsibility of both parties in the event of divorce. These responsibilities can include everything from cars, furniture, and savings accounts, to stock portfolios and retirement savings plans.

Once the decision to divorce has been made, parties often start to wonder how they will fare financially. After all, money is one of the most common reasons for contention in divorce. Contention is not the only issue that may impact a divorce settlement though. In fact, there are many potential pitfalls that can have a financial impact on one or both divorcing parties. Learn what they are and how you can avoid them by examining the following financial mistakes commonly made in a divorce. 

Underestimating the Potential Impact

Divorce is a lot like a business transaction, and like all business transactions, it is inherently complex. Factors that determine the division of debts and assets are applied differently from one case to the next, based on the couple's particular situation, and that can leave one party at risk for a significant financial depletion. In fact, one study found that baby boomers, who are currently divorcing at an unprecedented rate, saw a 77 percent reduction in wealth after divorce. Add in the potential for asset depletion, asset hiding, and revengeful spending and it becomes clear just how crucial it is that one fully understands the financial risks and implications of divorce - so underestimate it at your own risk. 

Thanks to technology, people can now find the answer to almost any question in the world within just a matter of seconds. They can connect with family and friends from around the world. Interested persons can even learn how to rewire their own house or file for their own divorce – but is having such knowledge at one’s fingertips always a good thing? In the case of divorce and electrical work, perhaps not.

Divorce is a Complex Process

Although DIY divorce options may try to convince you that the process is as simple as filling out the forms and filing them with the courts, nothing could be further from the truth. No two marriages or divorces are ever the same, nor should they be treated as such. Furthermore, laws vary by state, and not all DIY divorce options offer state-specific advice or information – and unfortunately, that can make divorce a far bigger and complicated mess than it would have been with appropriate legal assistance.

Divorce has always been a potentially damaging process – especially for children. However, things have started to shift in family law over the last several years. More families are working together to ensure the health, happiness, and well-being of their children, even while they are going through the painful process of divorce. Known as the “child-centered divorce,” this phenomenon has even prompted some interesting trends, such as birds nest parenting and post-divorce selfies. If you would like to learn more about keeping your child at the center of your divorce, the following strategies can help.

Consider Your Timing Carefully

While there are situations that may dictate when you start the divorce process (i.e. domestic violence, etc.), most couples have the power to choose when they will begin. For those that have children, the timing should be considered carefully. Parents are encouraged to avoid divorce around the holidays and birthdays, during major family events, or when significant change is expected to occur. For example, if the child is about to start preschool, it may not be the best time to file. Instead, parents may wish to wait until their child has adjusted to their new school schedule to ensure they are ready and able to deal with the divorce.

Uncontested divorces, or those in which the parties believe they can reach an agreement on the details of their divorce, might seem simple and straightforward. However, there are numerous challenges and obstacles that can quickly take a divorce from an amicable situation into a contentious one. As such, divorcing parties are encouraged to seek legal support, even if they plan to pursue an uncontested divorce. Learn why, and discover where you can find the assistance that you deserve, with help from the following information.

Asset and Property Division

Couples that are pursuing an uncontested divorce might assume that assets and property are split evenly between them. However, Illinois is an equitable distribution state, which means the estate is divided “fairly.” Of course, the term "fair" can mean different things to different people, which is why this issue is one of the most common reasons that amicable divorces turn contentious.