In the middle of divorce, financial decisions are among the most difficult and complicated to make. In the past, when a couple was divorcing, it was often the woman who ended up without anything, especially in states where there was no equal distribution property law and the woman did not work outside the home. These days, these challenges still exist, but in different forms.
To set the groundwork for a healthy financial situation after divorce, you must prepare a solid financial foundation that does not include your soon-to-be ex-spouse’s name on any account. This can include checking and savings bank accounts, credit cards, and assets. If you own a home this will likely be one of your most important assets, if not the most important. Not everything is tied up in this property, however. There are plenty of ways to build credit independently so that after your divorce is finalized you are not without recourse.
While setting the groundwork for a healthy financial situation after divorce, there are many common mistakes that people make. The first is to simply give up. If you are facing a long and drawn-out struggle of a divorce — especially if it is one that you did not want — you may feel like throwing in the towel just to end the proceedings. Rushing through the proceedings is the same thing: It is easy to underestimate just how much it can cost to refurnish a whole new home. Be sure not to miss out on getting your fair share of your joint assets.
Conversely, do not attempt to hide assets. By trying to “hide” certain possessions from the court’s knowledge, you may end up losing more than you would have gained. With advances in technology and the proliferation of online banking, it is very likely that you will get caught trying to hide money — and this can not only result in financial penalties, but damage your credibility in the eyes of the court.
If you or someone you know is considering divorce and has financial or any other type of questions, the most important step is to seek legal counsel. Do not go through it alone. Contact an experienced DuPage County family law attorney today.