Illinois residents who get a divorce may experience significant stress when thinking about the impact the process will have on their finances. Individuals can gain control of their lives by taking an honest look at their financial situations. This process entails being aware of all of their income, assets, liabilities and expenses.
There are various types of financial assets individuals may own. These may include certificates of deposits, stocks, money-market accounts, real estate investment trusts, savings bonds, cash, mutual funds, bonds and checking and savings accounts. These financial assets may be especially necessary for spouses who earn a low income or are not working as they can be used to pay for living expenses.
When taking stock of their financial assets, it is important that individuals keep in mind that not every type of asset will receive the same type of tax treatment. People will have to pay income tax on any distributions they receive from their retirement funds. Depending on the circumstances surrounding the distribution, they may also have to pay a penalty.
Real estate can include vacation houses, timeshares, marital homes and rental and business properties. Since a lot of people tend to form emotional attachments to their homes, it can be difficult for them to be objective when negotiating how their houses are to be handled during a divorce. If the decision has been made to sell the home, it is important to consider who will be responsible for paying for the expenses until the home is sold and how the money obtained from the sale will be divided.
A divorce attorney may advise clients regarding what legal avenues they can pursue to obtain favorable divorce settlements, including the division of assets. A lawyer may resort to litigation to ensure that the interests and rights of his or her clients are protected.