There are a number of financial considerations people in Illinois who are getting a divorce should take into account. For example, when dividing certain types of assets, it is important to take taxes into account when assessing their value. One person in a couple may take a retirement account with a value of $100,000 while the other takes a money market account of equal value. However, there may be taxes on the distribution of the retirement account, so its actual value could be lower. Another consideration is whether the ex-spouse will get survivor’s benefits on a pension plan if the other spouse dies.
Dividing debts can be more complicated than simply deciding who is responsible for each debt. A divorce decree does not shift responsibility in the eyes of creditors, so if credit card or other debts are in one person’s name, creditors will still consider the debt as belonging to that person.
Splitting the home can be difficult because of the emotional attachment to it, but people will need to take practical considerations into account such as who will pay expenses on the house until it is sold. There may also be alimony and child support to consider. A formula is used to determine child support, but elements of it can be flexible, and couples may prefer negotiating this and other divorce issues themselves instead of through litigation.
People who are considering divorce might want to talk to an attorney first about their financial situation. This could be particularly important for a nonworking or lower-earning spouse although higher-earning spouses might also have questions about how much alimony they would need to pay and how long it is likely to last. While every case is different, an attorney may be able to advise regarding state law and possible outcomes based on the couple’s financial situation.