When the possibility that a marriage may be coming to an end starts to set in, it is not uncommon for spouses in Illinois to be concerned about their financial well-being. A divorce can have serious financial implications for people that may last for years after the divorce itself is final. Spousal support, child support, asset division, reduced incomes and more are just some of the realities that face divorcing and newly divorced spouses. How can you stay or get on good financial footing after a divorce?
Nerdwallet recommends that spouses look at divorce as a time to take stock and review a lot of financial plans. Certainly this review should include daily and monthly budgets but that is just the start. Before a divorce settlement is signed, it is important to understand how asset division agreements may affect taxes for the coming or subsequent year. The outcome of this may indicate that a different agreement might be better for you than the one you are about to sign.
It is also important that you review all of your insurance plans. If you have to purchase new health insurance, you should evaluate plan cost but also out-of-pocket costs carefully. Life, disability and long-term care insurances should also be considered at this time as they can be valuable assets for you now and down the road but you will want ot understand the costs associated with them carefully.
This information is not intended to provide legal advice but rather to give Illinois residents tips on how to approach their financial well-being during and after getting divorced.