How Can I Protect My Finances During a Divorce?

Realizing that your marriage is ending is a complex emotional experience that can take a long time to process. But once the initial shock wears off, practical concerns will set in, and you may begin to worry about your day-to-day needs and how you will support yourself or maintain your lifestyle after a divorce. People in Chicago and across Illinois facing the end of their marriages should take steps to protect themselves financially, which we’ll discuss here. Making smart, proactive financial decisions can give divorcees a better chance to start their new lives on the right foot.

Record All Marital Property

If a divorce is imminent, make a written or typed list of all your marital property as soon as possible. Your list should include both assets and debts, as well as personal or sentimental items you may want to keep. This can ease the property division process and ensure all assets are accounted for. 

Under the Illinois Marriage and Dissolution of Marriage Act, all marital property will be divided on an equitable basis. This does not necessarily mean that assets are split evenly but rather based on each spouse’s contribution to the marriage, financial stability, and several other factors. Marital property usually includes nearly everything acquired during the marriage, but there are some important exceptions. An inheritance or items that have been outlined as separate property in a prenuptial agreement may not be subject to division in divorce.

Address Potential Hidden Assets

Unfortunately, spouses may try to hide certain assets in an effort to protect them from division. Some common ways money or other property can be concealed before or during a divorce include: 

• Stowing cash in safe deposit boxes
• Creating alleged debt to friends or family members
• Making overpayments to creditors or the Internal Revenue Service
• Deferring salary and bonuses

Spouses are required to fully disclose their assets and debts during a divorce in Illinois, and failing to comply could have legal consequences. Uncovering concealed assets is possible but may require skilled assistance, such as hiring a forensic accountant or similar investigator. People suspicious of foul play will need to proceed cautiously and consider the potential value of any concealed marital assets before pursuing legal action to recover such assets.

Be Cautious of Signing Anything

In some situations, a spouse may try to convince the other to sign preliminary documents that outline how property may be divided. Emotions can often cloud a person’s judgment early in the divorce process when these documents are presented. It is always a good idea to have a lawyer review any documents you are asked to sign during a divorce.

Build Your Own Accounts

At the first hint of divorce, people should take stock of their financial situation. Separating spouses should start building their own income stream if possible and establish bank accounts at an institution separate from where the joint account is held. Learning to track and reduce unnecessary expenses as soon as possible can help with building a post-divorce budget.

Seek an Experienced Chicago Divorce Lawyer

Finally,  anyone who is considering ending a marriage should consult with an experienced divorce attorney. No matter what the circumstances are – whether you are on good terms with your ex or prepared for a conflict – a knowledgeable divorce attorney can help you understand your rights and work to protect your best interests.

Contact WARD FAMILY LAW, LLC today to request a consultation and learn more about your legal options.