While it is generally considered common knowledge that divorce comes with fiscal costs attached, not everyone is aware of how far-reaching those costs can become. Illinois residents facing divorce, especially those coming from high-income families, may wish to consider how their separation will influence their assets years down the line. Some experts are urging preparation before approaching the negotiation table as a valuable way to avoid losing out on important assets.
An old saying talks about how a family can gain and lose a fortune within three generations, and this is particularly true in incidences of divorce. While the initial division of assets can already take a financial toll, many people do not consider where their inheritances and leavings will go when they die. Divorce often includes remarriage, which means a family fortune could very easily be disseminated across a wide spectrum of people not all necessarily attached to the family proper.
Additionally, there is the matter of pension. If one spouse does not work, this means they will have to be taken care of financially for the rest of their lives, and that means pension. However, how this pension can be distributed depends upon the wishes of both spouses, as there are several ways to go about it.
It is recommended that both parties become educated in all options available to them before a divorce is approached. Illinois residents have a wide variety of resources at their disposal to learn more about the process and their rights and responsibilities therein. Pre-planning of this type can mean the difference between drawn-out financial woes and a relatively quick and painless separation.
Source: Money Observer, The financial implications of divorce, Penny Lovell, Sept. 2, 2013