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Financial Planning For Divorce In Illinois

Going through a divorce is one of the most challenging experiences in life, affecting both your emotional well-being and financial stability. Important decisions need to be made that will shape your future. Proper financial planning during this time is essential to protect your interests and lay the groundwork for a secure life ahead. Our attorneys are here to help you through the key financial considerations. By being informed and proactive, you can get through this transition with confidence. 

Understanding Equitable Distribution In Illinois

In Illinois, the division of marital property follows the principle of equitable distribution, as outlined in the Illinois Marriage and Dissolution of Marriage Act (750 ILCS 5/503). This means that all assets and debts acquired during the marriage are divided fairly, though not necessarily equally. We work diligently to identify and value all marital assets, including real estate, bank accounts, investments, retirement accounts, and personal property. Distinguishing between marital and non-marital property is crucial to ensure an accurate and fair division.

Assessing Assets And Debts

A comprehensive evaluation of your financial situation is very important. This includes listing all assets and liabilities, such as mortgages, loans, credit card debts, and any other financial obligations. We assist you in compiling a detailed inventory, which serves as the foundation for equitable distribution. Understanding the true value of assets, including potential tax implications, helps in making informed decisions during negotiations.

Spousal Maintenance Considerations

Spousal maintenance, formerly known as alimony, may be a factor in your divorce proceedings. Under 750 ILCS 5/504, the court considers several factors to determine if maintenance is appropriate, such as the length of the marriage, the standard of living established, and each party’s earning capacity. We advocate for maintenance arrangements that reflect your financial needs and contributions, whether you are seeking support or may be required to provide it.

Child Support And Financial Responsibilities

For parents going through a divorce, child support is a key part of financial planning. In Illinois, the “income shares” model (750 ILCS 5/505) calculates child support based on the combined income of both parents. We work with you to clarify how child support is determined and explain your responsibilities, making sure the agreement serves your children’s needs while also being fair.

Dividing Retirement Accounts

Retirement accounts often hold substantial marital value and need careful handling during divorce to avoid tax issues. Typically, a Qualified Domestic Relations Order (QDRO) is required to split retirement plans without early withdrawal penalties, as set by federal and state rules. We guide you through this process to help you protect your retirement savings.

Protecting Your Credit And Finances

Keeping good credit is essential for your future. Joint debts and shared accounts can become issues if not managed carefully. We suggest getting a credit report to identify any joint obligations. Closing or separating joint accounts and building individual credit are steps to protect your financial standing. We’ll help you develop a plan to keep your credit safe during and after your divorce.

Updating Estate Planning Documents

After a divorce, it’s important to revise your estate planning documents, including wills, trusts, and powers of attorney. Changes in your marital status can affect how your assets are distributed and who has the authority to make decisions on your behalf. We help ensure that your estate plan reflects your current wishes, providing peace of mind for you and your loved ones.

Planning For A Secure Financial Future

Divorce marks a significant transition that requires careful financial planning. We work with you to develop a realistic budget that accounts for changes in income and expenses. By setting clear financial goals and understanding your new financial landscape, you can take control of your future. Our goal is to empower you with the knowledge and resources needed to thrive beyond this challenging time.

Illinois Divorce FAQs

How Is Marital Property Divided In An Illinois Divorce?

In Illinois, marital property includes all assets and debts acquired during the marriage, regardless of whose name is on the title. Under 750 ILCS 5/503, the court divides marital property based on equitable distribution, considering factors like the length of the marriage, each spouse’s contribution, and economic circumstances. Non-marital property, such as assets owned before the marriage or received as gifts or inheritance, is typically excluded. We help identify and value all assets to ensure a fair division.

Am I Entitled To A Portion Of My Spouse’s Retirement Accounts?

Yes, retirement accounts accumulated during the marriage are considered marital property. To divide these assets without tax penalties, a Qualified Domestic Relations Order (QDRO) is usually required. This legal order directs the retirement plan administrator to distribute a portion of the benefits to the non-employee spouse. We assist in preparing and executing QDROs to protect your rights to retirement assets.

How Is Child Support Determined In Illinois?

In Illinois, child support is calculated based on the “income shares” model outlined in 750 ILCS 5/505. This approach considers the combined net income of both parents to determine the total support amount that would have been available if the family remained intact. The court then assigns each parent a portion of this amount proportional to their share of the combined income. Factors such as the number of children, childcare costs, healthcare expenses, and educational needs are taken into account. We guide you through this calculation process, helping you understand your obligations and ensuring that the child support arrangement is fair and aligns with your children’s best interests.

Call Our Naperville Divorce Attorney For Your Free Consultation 

At Keller Legal Services, we are committed to helping you navigate the financial complexities of divorce with confidence and clarity. Our firm understands the complexities of Illinois divorce law, and our Naperville divorce attorneys are dedicated to protecting your interests. We provide personalized guidance tailored to your unique circumstances, ensuring that you make informed decisions every step of the way.

If you are facing divorce or have questions about financial planning during this critical time, please contact our Naperville divorce attorney at Keller Legal Services by calling 630-505-1515 to receive your free consultation. We represent clients throughout the Chicago Area from our offices in Naperville, Aurora, and Wheaton, Illinois. Let us help you secure a stable and prosperous future.