Ryan Family Law, P.C.
Ryan Family Law, P.C.

Elgin, Illinois

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Financial concerns and divorce

Divorcing couples in Illinois may experience significant stress when they consider how their finances will fare because of a divorce. They can retain control of their lives and lower their stress levels by focusing on their financial situations, specifically by getting a clear picture of their income, liabilities, expenses and assets.

Certificates of deposits, stocks, savings bonds, checking accounts, mutual funds, cash, real estate investment trusts, savings accounts and money-market accounts are all considered financial assets. For spouses who do not work or who earn a very low income, these assets can be particularly helpful in paying for living expenses.

One important detail to keep in mind when examining financial assets is that not all assets will be treated the same when it comes to taxes. For example, distributions received from retirement assets will be taxed. Depending on the situation in which the distributions are made, there may also be a penalty that has to be paid.

Divorcing spouses also have to contend with real estate assets. These may include timeshares, homes, vacation properties, commercial or residential rental properties and business properties.

Individuals may find it difficult to negotiate objectively about their homes because of the emotional attachments they have to their homes. However, if a house is to be placed on the market, the spouses will have to discuss who will be responsible for the expenses until the property has been sold. They will also have to determine the allocation of the proceeds from the sale or the remaining debt on the home if it is sold for less than what remains on the mortgage.

A divorce attorney may advise clients of their legal options regarding the division of assets. Litigation may be used to obtain favorable settlement terms regarding the division of financial accounts and real estate.

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