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How to Avoid Financial Difficulties After DivorceDivorce rarely comes as a surprise and is often a decision that is made by both spouses after months, or even years, of conflict. Unfortunately, most divorcing couples can see their marriage coming to an end as time goes on. Though this may be difficult to accept for some, most spouses have come to terms with their divorce before contacting an attorney for help. For those who see their marriage coming to a close, it is important to financially prepare for your future. It is no secret that divorce can be an expensive legal process, but with proper preparation, you can be fully prepared for the start of your single life before signing any legal documents.

Re-creating Your Budget

Many families have a budget that they work with on a monthly basis. Whether it is typed up on a spreadsheet or simply an estimate in the back of your head, this budget will have to be revamped for those going through a divorce. This budget may look different during your divorce to accommodate for any legal or court fees that you may incur during the divorce process. Having an idea of a post-divorce budget is a good way to start your new life. In most cases, this budget cannot be nailed down until after you and your divorcing spouse have discussed spousal and child support payments as well as the division of assets.

Updating Official Records

In the midst of a divorce, it can seem overwhelming when you realize the number of legal and financial documents that need to be changed. With the help of your attorney, adjusting this paperwork can be done much easier. This may include contacting your workplace to notify them of your changing marital status so that they update your insurance and 401(k) plan. If you have a will and/or powers of attorney, you will need to be sure that your former spouse is removed from them immediately. Many forget this step and do not realize it until they are in the midst of an emergency situation.

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Will Getting a Divorce Affect My Credit Score?For many people, divorce can put a big financial strain on the family. The cost of getting divorced is estimated to be anywhere from a couple of thousand of dollars to more than $100,000 if you have an extensive list of issues you must settle and a combative spouse. In addition to the cost of getting the divorce, your finances can change because you are switching to a one-adult household with less income and similar expenses. Many couples worry about what a divorce will do to their credit score and for good reason. Getting a divorce will not lower your credit score by itself, but there are things that happen throughout the divorce and the asset division process that could negatively affect your credit score:

  1. You Have Not Closed Your Joint Accounts Yet: Many couples simplify their finances during the marriage by having joint accounts. These can be bank accounts, credit card accounts or even investment accounts. During a divorce, these accounts must be distributed to both spouses, but it can take time to do that and to open new accounts in your own name. If your spouse still has access to accounts that have your name on them, they can do things that can negatively affect your credit score, such as accruing charges or overspending on a credit card account.
  2. You are Not Prepared for the Change in Income and Expenses: Divorcing also means you are splitting your households. Instead of having two incomes to pay for all of your expenses, you now have all or most of the same expenses but are paying those with only one income. Some spouses may be ready for this change, but other people take time to adjust. Before you are on your own financially, you should figure out a new budget for your post-divorce life and determine what you can and cannot afford. Even something as small as one late payment on a credit card or loan can impact your credit score negatively.
  3. You Have to Refinance Your Home: If you and your spouse owned a home together during the marriage, you must determine what you are going to do with it. Though the easiest way to deal with a family home is to sell it and split the profits, many people want to keep the home, especially if they have young children. If one of you is keeping the home, it is easier for everyone if the mortgage is in that spouse’s name only. To do this, you will probably have to refinance the home, which means you will have to go through a hard credit inquiry that could impact your credit score.

Consult With a Will County Divorce Attorney Today

Though your credit score is probably not on your list of priorities when you are going through your divorce, you should definitely keep an eye on it. Many people come out of divorce not knowing what their personal credit score is or not realizing that their credit score is not strong enough to qualify them for many things. At The Foray Firm, we understand how much of a change a divorce can bring to all aspects of your life. Our skilled Homewood, IL, divorce lawyers can help you throughout your divorce and help you protect your credit during the process. Call our office today at 312-702-1293 to schedule a consultation.

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Four Key Post-Divorce Moves to Manage Your FinancesOften, being married means nearly every part of your lives are entwined with each other – and finances are no exceptions. Many married couples have joint finances and share financial assets such as bank accounts, credit card accounts, investments, and even retirement accounts. When you go to get a divorce, you have to split all of that up in the most equitable way possible. This can be difficult even for the most amicable of couples. It is important to understand that a lot – but not all – of your post-divorce financial success depends on how you handled the finances during the divorce. Here are a few things you can do after the divorce to ensure you have a bright financial future:

  1. Take Care of Your Credit: You should take steps to make sure your credit is protected and that you are starting to build new credit in your name only. If there are any credit cards still open in both your and your ex-spouse’s name, be sure to close them as soon as possible. Open one or two credit cards in your name only to begin building credit on your own.
  2. Make Sure Your Estate Planning Documents are Up to Date: This is something that couples often forget about when they get a divorce. Once your divorce is final, you will want to be sure to update all of your estate planning documents, if you have them. The last thing you would want is for your ex-spouse to inherit your estate if you were to suddenly die. Be sure to update the beneficiaries in your will, trust or other documents.
  3. Sell or Refinance Your Home: If you and your spouse bought a home while you were married, you will also need to determine what to do with such a large asset. If neither of you wants the home, the easiest thing to do would be to sell the home and split the profits. If one of you is keeping the home, you may need to refinance it to make the payments more manageable.
  4. Form a Budget For Yourself: Now that you are single, you will need to rework your budget to meet your needs, while also fitting within your new income. Before, you probably relied on both yours and your spouse’s income to run the household. Now you must make sure you can survive on your income alone. 

Get Help From a DuPage County Divorce Attorney

Your finances are one of the biggest issues that will affect you for the rest of your life following a divorce. Getting help from a knowledgeable Bolingbrook, IL, divorce attorney can ensure your divorce settlement addresses as many of these issues as possible. At The Foray Firm, we can help you plan for your financial future before your divorce and help you modify the terms of your agreement after the fact. Call our office today at 312-702-1293 to schedule a consultation.

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Preparing Your Finances for an Illinois DivorceFor many people, getting a divorce is the most difficult thing they have ever had to do or experience in their lives. Getting a divorce uproots your entire life after you have gotten used to it for years or even decades. Divorces not only spell emotional turmoil, but they can also wreak havoc on your finances if you are not careful. Many people often underestimate the effect a divorce will have on their finances or simply make poor decisions because they are under pressure. One way to avoid making these mistakes and to set yourself up for success after your divorce is by preparing before you even begin the divorce process.

Know What You Are Working With

Before you do anything, your first task is to take inventory of everything that you own. You should take stock of all assets and have all pertinent documents on hand, including:

  • Savings and checking account statements;
  • Brokerage account statements;
  • Pension and Social Security statements;
  • Property deeds and car titles; and
  • Any physical property you own, such as household items.

Do not forget to also take inventory of any liabilities or debts you may have. Gather all documents pertaining to these, such as:

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