Divorce is one of the most difficult times in a person’s life. After several years of working toward a healthy relationship, the bottom often falls out. When a married couple decides to file for divorce, each spouse often faces financial hardships which could destroy the credit score, leaving each spouse less able to apply for loans or make investments. Before making the official decision to file for divorce, it is very important to look at the finances to see how well each spouse can navigate when living separately.
What to Consider When Filing for Divorce
When a married couple decides that now is the time to file for divorce, there are five key areas to consider before making the huge life change:
In a divorce, money is one of the biggest causes for concern among each spouse. Before officially filing for divorce, it is very important to gather all financial information and documents to create a budget. It is also very important to determine any debts, assets, or property that may need to be divided once everything is finalized.
Alimony, or spousal support, is when one spouse makes financial payments to the other spouse, potentially in addition to child support. If one spouse pays alimony to the other spouse, then he or she may be able to deduct that amount on their tax return, and the spouse receiving the alimony must report the amount on his or her tax return.
If two individuals have been married for at least 10 years, then one spouse can claim spousal benefits on the other spouse. However, if one spouse decides to remarry, the opportunity to claim benefits on the former spouse is lost.
Each spouse’s financial situation will likely be different after the divorce has been finalized. To have a better idea of what each spouse’s budget will be, it is a good idea to work with a financial advisor.
It may also be in each spouse’s best interest to update documents and change beneficiaries on his or her IRAs, annuities, and life insurance policies.
Call an Oak Brook Family Lawyer
If you or a loved one is about to file for divorce, it is best to seek effective legal representation. At Myers Law LLC, we have represented our DuPage County area clients in various family law and divorce matters for over 11 years, and we are ready to assist you with your case. To schedule a free 15 minute phone consultation, please call a Lombard family law attorney at 844-984-3529 (844-9-THE-LAW) to get the help you deserve. To better serve our clients, we are also fluent in Spanish.