When people in Illinois are considering getting a divorce, they may want to take certain steps to prepare financially for the process ahead. The first step should be to organize financial information. This may include getting copies of financial documents and putting them somewhere safe, such as with a friend or in a safe deposit box.
Many couples have joint financial accounts. Individuals who are thinking about getting divorced may want to consider opening their own separate accounts and also establishing individual lines of credit if they do not already have one. Taking this step may be particularly important for people who do not earn an income since the Credit Card Accountability Responsibility and Disclosure Act of 2009 has been changed to allow spouses who do not work to apply for an individual credit card using household income.
Taxes will also change after a divorce besides simply not filing as married. For example, a person might owe taxes on assets sold or split in the divorce. A divorce financial planner may be able to help a person anticipate what some of these changes will be as well as making a post-divorce budget. An attorney and a counselor are other types of professionals who might be helpful during this process.
Divorce can mean financial setbacks for some people, and for this reason, it is important to understand marital finances going into the divorce and have goals in mind for divorce negotiations. Property division might also be decided during litigation, but the advantage of negotiation is that it might give a couple more control over the final outcome. It may also be less costly and quicker than litigation. People should keep in mind that there may be costs associated with keeping some marital assets, such as the insurance, upkeep and taxes on a house.