A Illinois couple may face many difficult decisions once they decide to get a divorce. One common factor spouses must consider is property division. This may be a complex process, depending on the couple’s finances and assets. In addition to consulting a divorce attorney to assist in the legal proceedings, there may be steps individuals can make to make the process easier.
Some spouses may desire to remain in their homes after a divorce. In some cases, they may choose to keep the house in lieu of retaining other investments. However, this may not be the best choice in some situations. Finances often change when couples split, which means the upkeep costs may no longer be sustainable for an individual.
Another aspect to consider when divorcing is the tax implications. A retirement plan may have the same value as a person’s checking account, but the checking account would not incur tax when withdrawing money as a 401(k) would. If one spouse does have a 401(k) plan, the other could submit a qualified domestic relations order (QDRO) to the court to receive their share. This would not be subject to a 10 percent early withdrawal penalty, but that person would likely pay income tax on it if the amount is not rolled into an individual retirement account within 60 days.
These are only a few of the factors divorcing spouses must consider regarding property division. Because of these and other complexities in the process, most find that hiring an experienced divorce attorney is beneficial. Anyone who may be considering a divorce could contact a Illinois divorce attorney to obtain more information and assistance.
Source: CNBC, “When it comes to divorce, not all assets are equal“, Sarah O’Brien, Sept. 22, 2017