Avoiding a few common errors during a divorce can be important to establishing financial security for people in Illinois. One of those mistakes is spending too much money on the divorce by fighting over property and child custody in court instead of trying to reach an agreement out of court first. This is not always possible, but when it is successful, it can save time and money.
Many errors can be avoided by creating a post-divorce budget. This will give people a sense of how living with a single income will change their lives and might prevent them from making additional mistakes, such as keeping the family home when they cannot afford it. The budget should account for any anticipated taxes as well. If the couple decides to sell the home, in some cases, they could owe capital gains tax afterwards. This might also be the case when selling other types of property.
With all the other considerations in a divorce, it can be easy to overlook the estate plan. However, when the divorce is final, people should review their wills, trusts, powers of attorney and beneficiary designations. It is common for people to forget to do this, and it can inadvertently lead to an ex-spouse inheriting a retirement account or getting the payout from a life insurance policy.
Working with an attorney may help a person anticipate how negotiations might proceed and what can be expected in terms of property division and child custody. Talking to an attorney ahead of time about the parameters for property division can also help a person stay focused during negotiations. This can be an emotional time, and some people may be tempted to agree to unfavorable terms to get the process over with. However, it is important for people to protect themselves financially.