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Financial mistakes to avoid during a divorce

On Behalf of | May 11, 2022 | Divorce, Divorce |

Getting divorced in the state of Illinois can be a complex and confusing process. There is a great deal to think about at a time when your emotions may be running high. You will need to do all that you can to stay level-headed. This is all the more true when you discuss finances.

Don’t forget to change your beneficiary designation

One of the most important things that you will need to remember to do after you divorce is to change your beneficiary designation so that the people you have listed in your estate planning documents are the ones that you want to receive your assets. You don’t want your current wife to be left out in the cold because you forgot to revise your trust.

Don’t keep a home you can’t afford

You don’t want to hang on to a home that you can’t afford. It may be that the home is in your name. However, your spouse may be suing to get a piece of this asset. In the meantime, you may be left trying to keep the house up with very little support. If you can’t afford the mortgage on one income, don’t keep it.

In the long run, it may be better to simply come to an agreement with your former spouse regarding the sale of the home. This way, you will no longer have to bear the burden of paying taxes and housing association fees. The sale of the home may help you to get back on your feet so that you can move on with your life.

Settling retirement account issues

One of the last things you may need to do is to settle all of your issues that relate to your retirement account. Your former spouse may well be trying to get a piece of your payout. If this is the case, you will need to work with the court to get as fair a settlement as possible so you can retain most of it.

Using common sense and avoiding excess sentimentality will help you make prudent decisions. Trying to settle your divorce on the most amicable terms possible is a win for everyone.

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