Financial steps may help those going through divorce

 Posted on March 22, 2016 in High Asset Divorce

Getting divorced can be one of the most stressful experiences of a person's life, as the process involves both financial and emotional challenges. Many people spend a great deal of time planning their weddings but fail to take the necessary steps to prepare for a possible divorce. By investing time in the preparation process, people in Illinois may be able to avoid major negative financial consequences.

First, it is important for people to protect their beneficiaries. This can be done by reviewing college-saving and retirement plans along with insurance policies to figure out what has to be changed in order to protect minor children. If one decides to name children as beneficiaries, one might choose a guardian other than one's future ex.

It is additionally wise to be discreet when contacting people who are in charge of managing the family's money. This is because if one person speaks to financial professionals, accountants or attorneys who are used jointly by the person and his or her spouse, these professionals might have a professional obligation to tell the spouse about the discussions the other person had with them. Furthermore, it is expedient to figure out exactly how much money one will need to live on while going through the marital separation and following the divorce. This is necessary to avoid racking up debt that one cannot afford.

When going through divorce in Illinois, two people may benefit from going through the process of divorce mediation or divorce negotiation. If they are able to find common ground, they may be able to achieve a resolution that pleases both parties. If not, a judge will have to make the final decisions for them on matters such as asset distribution and property division in the divorce.

Source: The Huffington Post, "The Divorce To-Do List", Kyung (Kathryn) Dickerson, March 8, 2016