Protecting Credit in Divorce

 Posted on December 00, 0000 in Finances & Divorce

Though the actual act of divorcing does not affect your credit score, divorcing can have an effect on your credit through indirect ways. Women, especially, have traditionally had issues with their credit ratings after divorce because men were traditionally the breadwinners of the families and controlled the finances. Although things have changed, there are still a majority of women who have financial issues after divorce. One of those issues is trying to rebuild credit after years of intermingled credit with their spouses. Understanding steps you can take before and after your divorce to help protect your credit can be crucial to your financial wellbeing. Close Your Joint Accounts The first step you should take after you begin the divorce process is closing all of you and your spouse’s joint accounts. Because the accounts are joint accounts, both you and your ex are responsible for the accounts and the debts accrued on those accounts. By closing the accounts, you are preventing your ex from spending any more money on them and designating the debt to one person, rather than both of you. Keep Paying Your Bills You should also remember that it is a top priority to keep paying all of your bills, even if you are going through a divorce. On credit cards, make at least the minimum monthly payment, and for mortgage payments, you should pay them in full. Even one missed payment can damage your credit score and can cause future lenders to deny you or raise interest rates for you. Establish Your Own Credit One of the more important steps you can take to protect your credit is to establish your own credit under solely your name. Getting a credit card that has a small limit, such as a credit card from a store, can raise your credit score if you pay off the card as soon as you use it. Get Help from an Experienced Aurora Divorce Lawyer

If you are thinking about a divorce, one of the things you need to address is your finances and how you will be financially after the divorce. With the help of a knowledgeable DuPage County divorce attorney, you can take the necessary steps to protect yourself and your credit during and after your divorce. Contact the Law Offices of Matthew M. Williams, P.C. to begin discussing your situation. Call the office at 630-409-8184 to set up a consultation.

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Ways to Financially Prepare for Divorce

 Posted on December 00, 0000 in Finances & Divorce

“I think we should get a divorce.” Whether those words came as a total and complete shock or it was only a matter of time until they were uttered, it is never easy to hear that your marriage is falling apart. Divorce is an emotionally draining process, but it can also put a strain on your finances. Luckily, you can alleviate some of that strain by making sure you are well prepared before you even begin the divorce process. Making sure your finances are in order before you begin can save you some stress and a headache or two in the long run. Gather Your Records

Your first step in preparing yourself and your finances for divorce is by gathering all of your financial records and making copies of them. You should make sure that you have copies of your:

• Bank account statements from the past year, including checking and savings;

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Financial Planning Tips After Divorce

 Posted on December 00, 0000 in Finances & Divorce

When you hear people talking about divorce, they are probably talking about one of three things: how it affects you emotionally, how it affects your children, or how financially debilitating it can be. Marital life typically means that all of your finances and assets are entwined with each other, making it a difficult and stressful time for you when you go to separate them. Divorce can leave you with a sad bank account, a less-than-favorable credit score and thoughts about how you will pay bills alone. Although these issues can weigh on you, there are things you can do to help yourself after your divorce.

Educate Yourself

Before you begin creating a plan of attack for your finances, you have to know what you are working with. One of the first things you need to do is to take stock of all of your assets and debts and determine what is now yours. Divorce means you will be splitting all of these things, though not necessarily equally, but equitably. Figure out what you are working with and then go from there.

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Using a Lifestyle Analysis in an Illinois Divorce

 Posted on December 00, 0000 in Finances & Divorce

One of the biggest questions people have when they begin the divorce process is how it will affect their finances. Many people forget how interwoven their lives become with their spouse’s lives until they go to separate them. Especially when it comes to your finances, things can become confusing and stressful. The decisions you make during your divorce will affect you for many years to come, if not the rest of your life. One of the ways you can ensure your finances are taken care of and your assets are distributed correctly is by having a lifestyle analysis prepared.

What Is a Lifestyle Analysis?

Simply put, a lifestyle analysis creates the basis for what your standard of living was during the marriage. It is basically the complete financial picture of the most recent years of your marriage. Your lifestyle analysis will include:

• The kind of living expenses that you and your spouse had;

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Financial Tips for an Illinois Divorce

 Posted on December 00, 0000 in Finances & Divorce

Getting a divorce makes many things in your life far more complex than usual. Your children’s living arrangements become more complicated, managing your time becomes harder and even having your work life and home life balanced becomes more difficult. One of the things that can be the root of much stress is your finances and if you are not careful, your divorce can wreak havoc on them. If you are getting ready to file for divorce or you are currently in the process of a divorce, these four tips can help you keep your finances organized and simple:

Close Your Joint Accounts

Once you have filed for divorce, you should make sure you close your joint accounts, whether they are checking accounts, savings accounts or credit accounts. By splitting the amounts of both your checking and savings accounts, you can begin the separation process for marital property. You should also make sure to close your joint credit accounts so you do not rack up any more marital debt.

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Avoid These Common Financial Mistakes in Your Illinois Divorce

 Posted on December 00, 0000 in Finances & Divorce

Everyone knows that divorces are expensive, but they cost a whole lot more than just money -- they also cost you precious time, energy and emotional stress. Money is one of the biggest stressors in both marriage and divorce, which is why divorces can be so tense and combative. There are many complicated decisions you must make during a divorce and a good amount of them revolve around your finances. The decisions that you make about your finances when you get divorced are decisions that will affect you for a good portion of your life. Try to avoid making these four common financial mistakes during your divorce:

Not Having All of You and Your Spouse’s Financial Documents on Hand

Preparation is key when it comes to divorce. You will want to make sure that you have all of you and your spouse’s financial documents before you begin to negotiate who gets what. Make sure you have bank statements, credit card statements, mortgage and loan information and any other relevant financial documents on hand. If you think that your spouse is hiding assets from you, let your lawyer know. They will be able to help you uncover any hidden assets.

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What Is the Cost of an Illinois Divorce?

 Posted on December 00, 0000 in Finances & Divorce

Most people have a long list of questions when they make the decision to get a divorce. By far, one of the most common questions people have before they begin the divorce process is, “How much will my divorce cost?” The answer to that question is not a simple one -- there are so many factors that can affect the price tag on your divorce. Some sources report that the cost of divorce can be as low as a couple of hundred dollars, while other sources state a divorce will cost more along the lines of tens of thousands of dollars. Here are a couple of different factors that can affect the cost of your divorce: The Type of Divorce You Choose Not surprisingly, the type of divorce you choose can determine how much you ultimately end up paying for your divorce. A do-it-yourself divorce can range from $600 to $1,800, depending on the type of service you use and where you live. Typically, the only costs associated with a DIY divorce are those that come from the service you use and the filing fees. A litigated divorce can range in cost from $15,000 for a straightforward divorce to $200,000 for a divorce that ends up going to trial. Your Divorce Attorney’s Hourly Rate and Retainer Fee If you choose to have an attorney help you with your divorce, costs between lawyers may differ. The average attorney’s fees can range from $200 to $500 per hour and most attorneys also require you to pay for a retainer before you begin. The average retainer fee ranges from $3,500 to $10,000, depending on the complexity of your case. Court Costs and Filing Fees For the most part, in Illinois, filing fees tend not to differ very much between counties. To file for a dissolution of marriage in DuPage County, it costs $290, though that is not the only filing fee or cost you will have to deal with. Whether or Not You and Your Spouse are Willing to Work Together Couples who are more argumentative tend to pay more for their divorces. This is rather obvious because you will be paying more money if you are spending more time coming to an agreement on issues. For example, a couple who has to have five to six negotiation sessions will be paying their lawyer more than a couple who settles the same issue in only two sessions.

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Estate Planning Updates After a Divorce

 Posted on December 00, 0000 in Finances & Divorce

Estate planning is not something that the typical American tends to think about very often. This is especially true if you are going through a big change in your life, such as divorce. During a divorce, you have so many things constantly on your mind, estate planning is probably at the very bottom of your list. While updating your estate planning documents does not have to be your number one priority, it should definitely still be on your list somewhere. Here are a few estate planning documents that you should have in the back of your mind to update after your divorce is finalized: Wills If you are filing for a divorce, it is best that you draft an entirely different will, if possible -- this is the easiest way to ensure your estate is not given to your ex-spouse upon your death. In the state of Illinois, a will can be revoked by physically destroying it or by having a new will drawn up stating that the prior will has been revoked. If you do not change your will, but you finalize your divorce, Illinois treats the will as if your spouse died before you did. This means you do not necessarily have to change your will, but it is a good idea to make changes as necessary. Trusts Under Illinois law, trusts are handled similarly to wills when it comes to divorce. If you named your spouse in a revocable trust or living trust, the sections containing your spouse will become invalid upon the finalization of your divorce. If you have an irrevocable trust, however, the contents of the trust will not change and are unable to be modified. Power of Attorney Finally, you will want to make sure you revoke your power of attorney as soon as possible if you named your spouse to act in your place if you are unable to do so. If you do not change your power of attorney and become unable to manage your affairs, your spouse may gain access to your assets. You will also want to be sure that you remove your spouse from your healthcare proxy if you get a divorce. Not doing so can allow your spouse to make healthcare-related decisions for you if you are unable to do so.

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Planning for Retirement After Divorce? Consider a QDRO

 Posted on December 00, 0000 in Finances & Divorce

Getting a divorce turns your entire life upside down. The asset division process can prove to be especially cumbersome for some couples, as it requires you to take every single asset and debt into consideration when making decisions. Most couples argue over the house, bank accounts, and vehicles. While these high-value assets are important, it is also important not to overlook one of your most important assets -- retirement funds. It is easy to forget about retirement when it is 15 or 20 years away, but planning for it now can save you a big headache in the future. When it comes to retirement plans, one of the most important tools in your toolbox is a QDRO, which is a commonly used acronym for a qualified domestic relations order. QDROs can be extremely beneficial when divvying up retirement plans during a divorce and can take some of the uncertainty out of your future. What Is a QDRO? In the state of Illinois, all pension benefits, including individual retirement accounts (IRA’s) and defined contribution plans and accounts, are presumed to be marital property and must be divided in “just proportions.” This is where a QDRO comes in. A QDRO is a legal document that designates an alternate payee’s right to receive all or a portion of the benefits held in certain types of retirement accounts. What Is Included in a QDRO?

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Illinois Divorce and Common Law Marriage

 Posted on December 00, 0000 in Divorce

The only way for two spouses to end their marriage is by getting a divorce. But, what many people do not realize is that common law marriages also require a divorce before either spouse is free to marry someone else. How do you know if you have a common law marriage?

Illinois and Common Law Marriage

The state of Illinois does not recognize common law marriage. The only way to get married in Illinois is to obtain a marriage license and have a legal ceremony. Common law marriage, however, is recognized in many other states.

In states with common law marriage, a couple is considered to be legally married when they hold themselves out to be married and have lived together for a certain amount of time. Each state is permitted to create its own requirements regarding exactly what constitutes such a marriage. Some, like Illinois, have no criteria under which a common law marriage is assumed to exist.

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