As divorce attorneys in Chicago, we know that financial preparation is one of the most important steps you can take when facing the end of a marriage. Divorce affects every part of your financial life such as your income, your home and other property, your debts, and even your retirement accounts. Many clients come to us feeling unprepared for how their financial future may change, and that uncertainty only adds to the stress of divorce. Illinois law provides guidelines for dividing assets, awarding support, and determining responsibility for debts, but it is essential to understand those rules before moving forward. By preparing financially, you protect your rights, reduce surprises, and build a stronger foundation for your post-divorce life.
Understanding Property Division Under Illinois Law
In Illinois, marital property is divided according to the principle of equitable distribution, not automatic 50/50 division. Under 750 ILCS 5/503, marital property includes assets and debts acquired during the marriage, regardless of whose name is on the title. Courts consider several factors in deciding what is equitable, including each spouse’s contribution to the marriage, the length of the marriage, and each party’s economic circumstances.
Non-marital property, such as assets owned before the marriage or received as gifts or inheritance, generally remains with the original owner. Preparing financially means gathering documentation to prove which assets are marital and which are not as well as the values of that property.
Preparing For Spousal Support
Spousal support, known in Illinois as maintenance, may be awarded when there is a significant income disparity between spouses. Under 750 ILCS 5/504, the court considers factors such as each spouse’s income, the standard of living during the marriage, the duration of the marriage, and each spouse’s ability to earn income.
For marriages lasting less than 20 years, the statute provides guidelines for calculating the amount and duration of maintenance. For longer marriages, the court may award maintenance for a period equal to the length of the marriage or even on an indefinite basis. Preparing financially means understanding how maintenance could affect your budget, whether you may be paying or receiving support.
Child Support And Parenting Expenses
If children are involved, child support must also be considered. Illinois follows an income shares model under 750 ILCS 5/505, which bases child support on both parents’ incomes and the number of overnights each parent has with the child. Parents may also share responsibility for additional costs such as medical care, school expenses, and extracurricular activities.
Financial preparation includes reviewing your income, understanding your parenting schedule, and planning for how child support will impact your household budget.
Gathering Financial Documents
Before beginning the divorce process, it is crucial to gather and organize financial documents. These include tax returns, pay stubs, bank statements, retirement account balances, mortgage documents, credit card statements, and any other records of assets or debts. Having this information readily available allows us to provide accurate advice and ensures that the court has the full financial picture when making decisions.
Protecting Your Credit And Budget
Divorce can create new financial responsibilities, and it is important to protect your credit. We recommend checking your credit report, closing joint accounts when possible, and establishing credit in your own name. Creating a post-divorce budget will also help you prepare for your new financial reality, making the transition smoother and less stressful.
Frequently Asked Questions About Financial Preparation For Divorce In Illinois
How Does Illinois Divide Property In Divorce?
Illinois uses equitable distribution under 750 ILCS 5/503, which means property is divided fairly but not always equally. Courts consider factors such as the length of the marriage, contributions of each spouse, and each party’s financial situation.
What Is The Difference Between Marital And Non-Marital Property?
Marital property includes assets and debts acquired during the marriage. Non-marital property includes items owned before marriage, inheritances, or gifts given to one spouse. Non-marital property usually stays with the spouse who owns it, but it must be proven with proper documentation.
How Is Spousal Support Determined In Illinois?
Under 750 ILCS 5/504, courts consider income, earning potential, marriage length, and standard of living during the marriage. Illinois has statutory formulas to calculate the amount and term of maintenance. Longer marriages may result in longer-term support which can include a length that does not have a definite end date.
Will I Have To Share My Retirement Accounts?
Yes, if the accounts are marital property. Under Illinois law, contributions made during the marriage are marital and subject to equitable distribution. Most retirement accounts can be divided using a Qualified Domestic Relations Order (QDRO).
How Does Child Support Work In Illinois?
Child support is determined under 750 ILCS 5/505 using an income shares model. This formula considers both parents’ incomes and the parenting time schedule. Additional expenses such as medical, education, and childcare may also be shared.
What Financial Records Should I Collect Before Filing For Divorce?
You should gather pay stubs, tax returns, bank statements, mortgage documents, retirement account records, credit card statements, and any loan documents. Having complete documentation ensures an accurate assessment of marital property and support obligations.
Can My Spouse Hide Assets During Divorce?
Spouses sometimes attempt to hide assets, but Illinois law requires full disclosure. Courts can impose penalties if a spouse is caught concealing property. Discovery tools such as subpoenas, requests for documents, and depositions can uncover hidden accounts or income.
How Can I Protect My Credit During Divorce?
Close joint bank and credit card accounts where possible, monitor your credit report, and establish accounts in your own name. Paying bills on time and separating financial obligations early helps prevent damage to your credit score.
Do I Need To Create A New Budget Before Divorce Is Final?
Yes. A realistic post-divorce budget helps you prepare for new expenses and possible changes in income. Planning ahead ensures you can adjust to financial changes without being caught off guard.
Call Michael C. Craven For A Free Consultation
Michael C. Craven, Chicago Divorce Lawyer, knows that financial preparation is one of the most important steps in protecting your future during divorce. We guide our clients through every stage of the process, ensuring that their rights are protected and that they are financially prepared for life after divorce.
Contact our Chicago divorce lawyer today by calling (312) 621-5234 to schedule a free consultation. We represent clients throughout Chicago, Illinois, and we are ready to help you prepare for the next chapter of your life.
