For some Illinois couples, ending their marriage can be financially challenging. The divorce itself can be costly, and after splitting up households, both people may find themselves with a lower standard of living than they enjoyed together. However, increasingly, couples are looking at ways to approach the process more cooperatively and lessen the financial pain.
Couples have a choice to negotiate a divorce settlement or go to litigation, and they might want to give the former a try before heading to court. Each person may want to think about assembling a team to help with the process. In addition to an attorney, this team may include a financial planner and supportive family members. Essentially, it is made up of the people needed to get through the divorce.
While no one wants a divorce that drags out unnecessarily, it is also important that a person does not agree to a settlement too quickly. People should make sure they understand the options and their implications. This includes paying attention not just to major assets, such as the home, but to medical and other types of insurance. Taking this time can make the process less difficult both emotionally and financially.
One thing people should fully understand as part of the process of property division is the taxes, penalties and expenses associated with various ways of dividing property. For example, taxes may be due on some assets that are sold. There could also be taxes and penalties for some types of retirement accounts if they are not divided correctly. When looking at the value of a retirement account, it is important to note whether it will be available tax-free or if there will be taxes on distributions. A person who keeps the marital home will need to pay taxes on that as well in addition to costs like insurance and repairs.
