Going through a divorce in Illinois can negatively impact your credit if you are not careful. Following key steps can help minimize damage and keep your credit score healthy during a divorce.

Review All Joint Accounts

Pull your credit reports and review all joint accounts with your spouse, such as:

• Mortgages
• Auto loans
• Credit cards
• HELOCs/home equity loans

Look for any missed or late payments that may already be affecting your score. Also, assess available credit limits and balances.

When examining the factors that contribute to divorce rates, finances emerge as a significant influence on marital stability. In Illinois, a state renowned for its unique legal framework, understanding how finances impact divorce rates becomes crucial.

Economic Stress and Marital Dissolution

Marriages are not immune to the pressures of economic stress, and Illinois is no exception. Financial strains resulting from economic downturns, unemployment, mounting debt, and disagreements over money can significantly strain marital relationships.

Property Division

In divorce cases in Illinois, it is vital to determine marital assets. As the state follows equitable distribution laws, the division of property between the spouses is not necessarily equal but fair. The judge takes into account different factors, including financial imbalances, when deciding how to divide the assets.

A divorce entails much more than simply the ending of a marriage. Parties must also divide and allocate property or assets earned throughout the marriage. This can often be a difficult task for parties. This process involves thorough and thoughtful negotiation, however, if the parties are going through a difficult divorce, then there might be some fear that a party may be hiding assets from the other. Hiding assets is not only unlawful, but if caught, it can significantly impact the overall outcome of the divorce. If you believe your spouse could be hiding assets from you, knowing what to look out for is essential so you can act on it promptly.

Things To Look Out For

Almost every aspect of a divorce revolves around finances. In some cases, a spouse will try to get an advantage by undervaluing certain assets, overvaluing debts, or even failing to disclose assets. If you are getting a divorce and fear that your spouse may be trying to manipulate the outcome by hiding assets, here are some things to look out for:

• Keeping financial matters a secret - If your spouse keeps financial information from you, such as bank passwords, or even hides or destroys financial documents, this is a major red flag to look out for.
• Financial transactions - One way spouses may hide money from a spouse is by transferring money from one property to another. They may even try to lend money to a friend or family member to keep it from being brought up in the divorce. This is something to keep an eye on and look out for.
• Business transactions - If your spouse owns a business, there are many ways for them to commit and hide fraud during a divorce. If you notice an unusual shift in their business, such as the business dropping or a sudden increase in expenses, your spouse may try hiding money within their business.
• Unusual cash withdrawals - If you notice that your spouse is taking out large sums of money or making random, expensive purchases, this may be a sign of financial dishonesty. Hiding money during a divorce can be as easy as a spouse taking out cash or buying expensive items to return or sell later. Watch out for any costly purchases or withdrawals during the divorce.
• Items are missing - Spouses who want to hide expensive assets from the other party may remove items from the marital home and hide them away so that they will not come up during the divorce. If you have expensive items within the home, such as jewelry, art, or anything else that may be worth a lot of money, getting them in order and knowing where they are is essential.

Contact a Kane County Divorce Lawyer

At the The Law Office of Matthew M. Williams, P.C., we understand how just alone the overall process of divorce can be and how difficult it can become if you believe that your spouse is hiding assets from you. Lying about assets can dramatically change the divorce outcome; it is crucial to work with an experienced divorce lawyer and take the swift action needed to protect your assets. Contact an Aurora divorce lawyer today at 630-409-8184 and arrange an initial consultation. You do not have to go through this alone.

One of the most common causes of divorce in the United States is finances. In fact, almost 40 percent of married or partnered couples say that money causes heavy stress in their relationships. While money problems can contribute to divorce, they can also be one of the reasons why unhappy couples stay together. The thought of going from a two-income household to a one-income household can be daunting, as can the thought of dividing up assets, property, and marital debt.

While divorce can result in some financial issues that an individual may need to adjust to, there are several areas where your financial situation may actually get a boost following a divorce. If you are considering a divorce but are concerned about how you will be financially impacted, a Kane County divorce attorney can help.

Financial Independence

Financial planning is always a smart decision, but during a divorce, financial planning can become critical. Developing a financial plan can become an extremely important piece of ensuring your financial health after the divorce. You have likely heard of the old adage that “knowledge is power,” but that is especially true when it comes to a divorce. 

Understanding the “In Spouse” and “Out Spouse”

In many cohabiting couples, there is usually a spouse who is more financially savvy and knowledgeable about the household’s finances than the other. This spouse is typically referred to as the “in spouse” because they are the ones who are in the financial loop. The other spouse, referred to as the “out spouse,” usually has little to no knowledge of how the household’s finances are handled. The “in spouse” may handle every aspect of the finances, such as paying the bills every month, keeping track of bank accounts, making investments, and creating and maintaining a budget. Naturally, the “in spouse” would have a bit of an advantage over the “out spouse,” who has not really been involved in the monetary aspect of the divorce. In some cases, the “in spouse” may be controlling or secretive about the family’s finances, making it difficult for the “out spouse” to get an accurate understanding of what they are working with.