Protecting Your Finances During a Divorce

 Posted on August 08, 2016 in Divorce Finances

Divorce is a financially complex process that can long-term consequences. If, however, you effectively manage your finances during divorce, and ensure that you seek skilled legal counsel with the process, you can greatly increase the chances of a favorable outcome. Learn what you need to know about protecting your finances during your Illinois divorce.

Tackle Debt Problems First

A lot of couples jump into divorce, knowing that their marital assets will be divided. However, many fail to consider that their debts are usually divided as well. If you have a significant amount - particularly any debts that your spouse has not disclosed to you - it could lead to financial problems later on down the road.

To reduce the risk of future financial problems, ensure you gather information on all of your marital assets, and your debts. Know what you own, what you owe, and, if at all possible, work together to pay down your marital debts before actually filing. If you know that have more debt than you can handle, consider credit counseling or filing for bankruptcy. For situations involving undisclosed debts or assets, the assistance of an attorney may be needed.

Insurance is a Must

When couples split, one or more members of the family may be at risk for losing their health insurance coverage. Prepare and plan for this early on. If feasible, discuss possibly keeping children on your spouse's insurance plan. For yourself, check to see if you can purchase affordable insurance through your employer. If not, use the proper avenues to secure at least minimum coverage for yourself, or discuss the possibility of negotiating a term of continued coverage through your spouse's health plan after the divorce. This will protect you from expensive medical bills, should an accident or major illness occur, at least until you can find more affordable coverage for yourself.

Consider Taking Out a Life Insurance Policy On Your Spouse

If you are owed alimony or child support, you may want to consider taking out a life insurance policy on your spouse. Unlike a plan that they would carry under their name, this policy would be paid for and carried by you, with you as the beneficiary. This will ensure that, should something happen to your spouse, you have at least some sort of financial recovery for the loss of alimony or child support.

Avoid Taking Shortcuts

One of the biggest mistakes that couples make in divorce is trying to take shortcuts to save money. Unfortunately, this often ends up costing them more in the long run. Skipped trips to the doctor result in diminished health, as does unmanaged and prolonged exposure to stress, which could be managed with the help of a therapist. A do-it-yourself divorce turns into a tangled financial mess because missteps were taken with the paperwork, or with the division of assets and debts. Avoid these costly and potentially irreversible mistakes and contact a divorce attorney today.

At Stock, Carlson & Asso. LLC, we have the skills and experience needed to help you effectively navigate the legal complexities of your divorce. Committed to helping you achieve the most favorable settlement possible, we will also defend your rights during the negotiation or litigation process. Contact our DuPage County divorce attorneys today to learn more. Call 630-665-2500 for your free consultation.

Source:

http://www.wbrc.com/story/32465924/7-ways-to-protect-yourself-financially-in-a-divorce