Divorce can be an emotional roller-coaster that is never ending. When you add in the fact that your financial situation can drastically change, it only adds fuel to the fire.
There are a number of financial issues that arise from divorce such as reallocating your debts, dividing assets, paying child support, changing tax filing status, and many others.
Most married couples share their assets so the thought of dividing everything up can be somewhat stressful and challenging. It would seem logical that the easiest way to divide property, settle debt and manage assets in a divorce would be to split everything right down the middle – 50/50.
Unfortunately, it’s not always that simple and oftentimes divorcing couples may not agree to this type of property division which can make the process of reaching a fair and equitable agreement more challenging and time-consuming. Divorce is already an emotional undertaking and the more complicated the process becomes, the more time it will take and ultimately the more money it will cost
They are many things to consider – For example, after you’re divorced, you will probably have to change the way you file your taxes. If you have children, you will have to decide whether you or your spouse will claim them as dependents. Not only that, but there may be other tax exemptions that may need to be re-evaluated once you are divorced.
Then, there’s child support and alimony (spousal support) to consider. Both of which can be huge hits to anyone’s personal finances. The spouse who ends up having to pay child support and alimony will need to add this substantial expense into their budget. The spouse receiving the child support and alimony will need to figure out how to best utilize the funds and make them work to take care of the family.
Divorce affects the overall economic dynamic of the entire family – not just the personal relationship between the divorcing spouses. The financial repercussions that arise can be very deep and very complex causing a major impact on everyone involved.
Just try to remember that these effects are usually temporary and will get better as time goes on.
If you are considering a divorce in Cook, Lake or McHenry counties in Illinois and need a top-rated divorce attorney who can help you make sound decisions and protect your rights, contact Bush & Heise today at 1-847-382-4560 to schedule a free, no obligation case evaluation.