The long-term financial effects of divorce can be expensive. If both spouses work, you will need to learn how to survive on just a single income. That one income has to cover utilities, food, and other expenses, as well as fund savings and retirement investments. However, planning ahead can help. If you are considering a divorce, financial advisors suggest taking the following steps so you are on firmer financial ground if and when you decide to file.
Know Your Current Financial Situation
To begin, it is important to know your current financial standing. First, acquire all copies of any bank accounts and investment statements for the past year. You should also make copies of any income tax returns filed for the past several years. Request your credit report so you can see exactly what debts you owe.
Next, consider consulting with an attorney to find out what the bigger picture would look like if you make the decision to end your marriage. Illinois is an “equitable distribution” state, which means marital property will be divided fairly between you and your spouse, not necessarily equally. To ensure the equitable distribution of your property, the law requires full disclosure of all assets and obligations....