Tag Archives: division of marital debt

How Can I Avoid Bankruptcy After an Illinois Divorce?

Wheaton divorce and bankruptcy lawyerA recent survey found that 39% of people state that debt and other financial issues were a major factor that contributed to their divorce. It is no wonder that bankruptcy and divorce are so closely linked—not only can divorce itself often cost more money than many people expect, but the financial ramifications of the divorce are felt long after the proceedings are complete. From the division of marital debt to simply adjusting to living on a single income, life after divorce can get expensive. But that does not mean you have to file for bankruptcy. Here are some tips for keeping your finances in order after your marriage has ended:

6 Ways to Prevent Bankruptcy Following Divorce

While there are some things you can do to avoid bankruptcy that are common to just about any person, divorced or not, there are also some special things that you can do to protect yourself against bankruptcy when you are divorced. Some examples include:

  1. Increase Your Income—This is probably one of the very first tips a financial advisor will tell you if you are considering bankruptcy. Are there any ways for you to increase the money you make? The more money you have coming in, the less likely it will be that you will drown in debt. You may want to take on extra jobs (part time or otherwise), seek a promotion or a raise at work, rent out your house, sell your valuables, or borrow from family and friends if necessary.

  2. Decrease Your Spending—Another obvious option to avoid bankruptcy is to decrease your expenses. You can do this by drawing up a budget and sticking to it. Focus on the necessities in your budget and be realistic in terms of what you can afford. If you already have a budget, revise the budget and do your best to eliminate anything you do not need.

  3. Readjust to Being Without a Partner—A common problem that divorced people face is making the appropriate adjustments to their lifestyles. When you were married, you and your spouse pooled your finances and resources. You were probably able to afford more discretionary spending in your lives because you had two incomes and shared expenses, such as those associated with your house or apartment. Now that you are single again, you might want to reconsider how you will live your life. This could include relocating to somewhere cheaper, holding off on buying a new car, spending fewer nights on the town, or cooking meals at home rather than eating out.

  4. Remarry—You can always get back into the dating scene and find a new partner. This can help restore the sense of financial security and comfort you had before your divorce. However, you should keep in mind that if you rush into a new relationship before you are ready, you might end up divorced yet again.

  5. Restructure Your Mortgage and/or Renegotiate Your Debts—Divorced people, married couples, and single people alike can stave off bankruptcy by restructuring their mortgages or negotiating their debts. Overall, most financial institutions are interested in negotiating with you, because they would rather get more money from you now than receiving nothing from you later if you file for bankruptcy.

  6. Hire the Right Divorce Attorney from the Start—Here is the best advice we can give to you if you really want to avoid bankruptcy after divorce: seek legal representation from the right attorney at the beginning of the divorce process. If you find the right attorney, you can ensure that the terms of the divorce will be to your benefit, including making sure spousal support or child support payments will meet your needs and maintaining ownership of valuable assets during the division of property.

Contact a DuPage County Divorce Lawyer

Divorce is a big enough life event in itself, and you will not want bankruptcy to complicate things even further. Hire the right Wheaton family law attorney from the start of your divorce. If you enlist the help of the knowledgeable team at Andrew Cores Law Group, you will receive valuable, affordable legal counsel, ensuring that you will be awarded the optimum financial benefits from your divorce agreement. Call us at 630-871-1002 for a free consultation.

Sources:

https://finance.yahoo.com/news/debt-com-survey-divorced-americans-134500285.html

https://money.usnews.com/money/blogs/my-money/2012/05/16/5-ways-to-avoid-filing-for-bankruptcy

https://globalnews.ca/news/3377381/heartbroken-and-bankrupt-why-divorce-can-destroy-your-finances/

5 Reasons You May Consider Signing a Postnuptial Agreement

DuPage County postnup lawyerIn a previous blog post, we discussed some reasons that you may want to sign a prenuptial agreement before getting married. But what if you are already married? In these cases, you may consider a postnuptial agreement. However, you may be unsure of when this type of agreement is appropriate. There are some reasons that you may want to consider discussing this type of agreement with your spouse.

Why Should You Sign a Postnuptial Agreement?

Most everyone has heard of a prenup, and these types of agreements have become increasingly more common. However, as their name implies, prenuptial agreements can only be signed before getting married. For those who are already married, a postnuptial agreement can function in a similar fashion, and it can include decisions about a couple’s marriage and their potential divorce. A postnup can address the division of property and debt and the allocation of investments and retirement funds, and it can modify or eliminate a spouse’s right to receive alimony/spousal support.

There are many reasons to sign a postnuptial agreement, and some of them are actually quite surprising. Here is a look at why you might want to sign a postnup:

  1. You Do Not Want Another Stressor Before Marriage—From sending out invitations to arranging the ceremony and reception, there is a lot to do in the days leading up to marriage. While a wedding is a joyous occasion, it can also be one of the most stressful times in someone’s life. Working with your partner and a lawyer to develop plans for a potential divorce through a prenuptial agreement seems like a counterintuitive, unhappy area of focus during this time. Many people avoid prenuptial agreements altogether simply because they are too busy or too stressed out already. A postnuptial agreement can give you time to recuperate from the stress of the wedding itself before discussing the possibility of divorce.

  2. You and Your Spouse Will Have a Better Idea of What to Expect—If you wait until you have spent some time together as husband and wife, the two of you may have a better understanding of your expectations for the rest of your life. You may also have a better understanding of each other, including how you two will work together as a couple, what areas are more important to each of you, and whether you are willing to make certain concessions in specific areas if you get divorced.

  3. Your Financial Situation Has Changed Significantly—Maybe you have started a new business, and your profits are set to exceed expectations, or perhaps a recent investment has shown vast improvement. In the years since you got married, you may now own significant property, such as a house, cars, or a yacht, or you may have received a sizeable inheritance, and you are particularly worried about keeping it. Also, either spouse may have incurred debt or student loans during your marriage that the other spouse does not want to be responsible for. Any number of things could have changed with your finances after marriage, and a postnuptial agreement can address these issues.

  4. You Never Planned on Having Children Together, But Now You Do—When you first got married, you may have both assumed kids were out of the question. You may have felt that a prenup was unnecessary because a divorce would be relatively uncomplicated. However, things can change as time goes by, and you may be planning to have children or have had them already. With kids in the picture, your priorities have likely changed, and a postnuptial agreement may allow you to address some of the financial issues that you are now worried about in the event of a possible divorce.

  5. It Could Save Your Marriage—Probably the most surprising—and increasingly popular—reason to get a postnuptial agreement is that it could help improve a relationship. If both spouses are keenly aware of what they stand to lose if they cannot get their marriage to work, then they will be more motivated to stay together. In fact, some spouses have used a postnuptial agreement as a tool to keep each other dedicated to the fidelity of their marriage.

Contact a Wheaton Postnuptial Agreement Attorney

If you and your spouse did not sign a prenuptial agreement, it is not too late to address your concerns and make decisions about how things would be handled in the case of divorce. To learn more about how a postnuptial agreement can meet your needs, contact a DuPage County family law attorney who can help you two get organized and develop a detailed and comprehensive agreement that will stand up in court and withstand the test of time. Reach out to Andrew Cores Family Law Group at 630-871-1002 today for your complimentary consultation.

Sources:

https://abcnews.go.com/Business/forget-prenup-postnuptial-agreement/story?id=28946039

https://www.forbes.com/sites/heatherlocus/2018/09/23/why-prenuptial-and-postnuptial-agreements-lead-to-stronger-marriages-and-prevent-disastrous-divorces/#5c668a2a6488

https://www.investopedia.com/articles/personal-finance/062915/5-signs-you-need-postnup.asp

 

5 Reasons to Sign a Prenuptial Agreement

DuPage County prenup lawyerIt might seem like a cynical thing to contemplate prior to your wedding, but before getting married, you should consider drafting and signing a prenuptial agreement. Prenuptial agreements, or “prenups,” are less of a way to imply doom and gloom for your future marriage and more of a smart method to prepare yourself for the worst-case scenario: divorce. Prenuptial agreements enable you to decide on many of the terms of your divorce at the start of your marriage—this includes division of property and division of debtallocation of investments and retirement funds; and determination of alimony/spousal support.

Why Should You Sign a Prenup?

At one time, prenups were more common among wealthier people who had more assets with which to negotiate. These days, however, they are becoming more common for a wide variety of people, including millennials who are trying to protect themselves from the possibility of divorce in the future. Since divorce is so much more common now than it was in years past, it makes sense to safeguard against it with a prenuptial agreement.

There are myriad reasons to sign a prenuptial agreement, and many of those will ultimately depend on your particular situation. In general, some convincing reasons to use a prenuptial agreement are:

  1. Protecting Your Finances in the Future—If you have a lot more valuable property and assets than your future spouse, a prenup is a great way to protect what you have. In contrast, if you have much less than your partner, a prenup is a useful contract to make sure that, no matter what happens during the marriage and a potential divorce, you will still have what you need to support yourself in the future.

  2. Keeping Things Straight—If you have been married for years, by the time you get a divorce, all of your assets and other finances might have been so commingled that you both have forgotten what belongs to whom. An easy way to keep things straight is to sign a prenup so you both know from the start who owns what.

  3. No Surprises—By essentially setting the terms of your divorce in advance, you can avoid being surprised if your relationship does break down in the future. In many cases, spouses are unfamiliar with divorce laws, but a prenup can help you better understand the intricacies of the divorce process if necessary.

  4. Fairly Managing Complex Investments—From your retirement and other investment accounts to a family-owned business, it is important to make sure that you will retain ownership of the assets that are important to you in the case of divorce.

  5. Ensuring a Good Life for Your Children (Current and Future)—Especially in the cases of second or subsequent marriages, a prenuptial agreement is a helpful way to ensure that your children will be able to receive the assets they are entitled to.

Contact a DuPage County Prenuptial Agreement Lawyer

It is always a good idea to plan for the future. Better yet, it is a great idea to prepare for the worst. This philosophy applies to marriage and divorce as well. If you and your future spouse are concerned about how a possible divorce would be handled, and you want to protect what is yours, then a prenuptial agreement is a smart move. Get in touch with a Wheaton prenup attorney who knows all the latest developments in divorce law, including any new rules regarding prenups. Call the knowledgeable team at Andrew Cores Family Law Group at 630-871-1002 for a free consultation.

Sources:

http://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2087&ChapterID=59

https://www.businessinsider.com/reasons-to-sign-a-prenup-before-marriage-2018-10

https://www.bankrate.com/personal-finance/smart-money/why-engaged-couples-should-sign-a-prenup/

https://www.forbes.com/sites/christopherelliott/2018/07/19/read-this-before-you-sign-a-prenuptial-agreement/#38858bc1587c