Category Archives: Divorce Finances
When the Retirement Years and Divorce Intersect
Studies show that retiring couples are divorcing at an unprecedented rate – one that has doubled in just the last couple of decades. In many ways, it could be considered a positive thing. It suggests aging couples are living longer and have more financial confidence than they once did, and that gives them the power to make decisions by looking at their quality of life. They do not have to feel pressured to maintain the status quo. However, there are still some important factors to consider before pursuing divorce. The following explains further.
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Suspect Hidden Assets in Your Divorce? Here is What You Should Know
Are you going through a divorce? Do you suspect that your spouse may be hiding assets to get more than their fair share? You are not alone. In fact, research suggests that many Americans are guilty of hiding money from their spouses during the marriage. It stands to reason that they might continue hiding this money in divorce. Unfortunately, those hidden assets can leave one party disadvantaged, not just immediately after the divorce, but perhaps, for years to come. Learn how to minimize your risk and employ the following strategies and resources in your divorce case.
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Divorce and the Marital Home
Divorce is full of difficult decisions. One issue that our clients regularly face is what to do with their shared marital home. In some cases, one party wants to hold on to the residence, either by buying out the other spouse or by replacing an existing mortgage with a new mortgage that only lists one spouse. In other cases, both parties agree that selling the home is the best decision. There are advantages and disadvantages to keeping or selling the home, and long-term implications that come with either choice, so it is important that those going through a divorce seek the help of an experienced divorce attorney who can advise them on this matter.
Just Divorced? Tips for Getting Your Finances Back In Order
If you have just divorced, you are likely ready for some relaxation and recovery time. Everyone needs a little break after a stressful, complicated experience, especially after a taxing process like divorce. While you may be ready to take a break from the lawyers, paperwork, and court dates you faced during your divorce, there is one last area to focus on before enjoying your newly single life – your finances. Life post-divorce can be vastly different from married life, so it is crucial that you move on with a solid understanding of your finances and a plan for the future.
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Are ‘Divorce Mortgages’ Coming To Help Older Homeowners?
Gray divorces, or divorces among adults 50 and older, are becoming increasingly more common. In fact, the divorce rate for Americans 50 years old and older has doubled over the past 14 years. Divorce for older Americans, however, has its own unique challenges. Older couples are often either planning for retirement or about to retire, and a divorce can throw a major wrench in those plans. The divorce process itself can be costly, but even after divorce, life as a single person is typically more expensive than married life when incomes are combined. In many gray divorce cases, one spouse hopes to keep their shared family home, but this is unfortunately often too costly for one spouse to handle on their own, especially if they have other large expenses. For this reason, many divorce specialists suggest gray divorcees consider selling their shared home during their divorce and splitting the proceeds. Now, in the United Kingdom, lenders across the country have announced plans to implement “divorce mortgages” at some point this year, and there is a large chance these mortgages will become available in the United States soon as well. Here is what you need to know.
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Financial Tips for Gray Divorce
Divorce can be a burden, both emotionally and financially. For those over 50, likely preparing for retirement, divorce can be financially destructive. Retirement plans can quickly unravel, assets can disappear, and many late in life divorcees, especially women, find themselves in poverty post divorce. Late in life divorces, often referred to as gray divorces, are on the rise in America. For those ages 55 to 64, the divorce rate has doubled since the 1990’s, and for those 65 and older, the rate has tripled. Today, around one in four couples over 50 years old divorce, and it is more important than ever that late in life divorcees plan accordingly for their future finances.
Preparing for Divorce: Common Financial Mistakes People Make during Divorce
Divorce is a stressful, complicated process, and those going through it are easily susceptible to making mistakes. If you are struggling to cope emotionally with your divorce, your finances – both short and long term – may not be on the top of your mind. If you are going through a divorce, however, you need to be aware of a few mistakes you may be making that could potentially impact your finances for years to come. Divorce specialists say there are a few common financial mistakes their clients make during divorce, and encourage those about to protect themselves from them. They Do Not Budget Budgeting seems to be a problem for Americans. A recent Gallup poll showed that only one third of Americans create and follow a household budget, so it comes as no surprise that people do not budget for divorce either. Before filing, sit down and review the future costs of your divorce. Additionally, budget for your life as a newly single person. Will you be working? Will you be receiving maintenance or other support? They Do Not Get Their Assets Valued If you want an accurate idea of how much you and your ex will be receiving from your divorce settlement, you need to know the value of everything you owned together. While having your house appraised during a divorce may seem like a hassle, it really is the only way you can plan for your settlement. Similarly, if you or your spouse has a pension, get it valued. They Do Not Gather All of Their Important Financial Documents Experts say that not having a complete picture of your shared finances is one of the easiest ways to make financial mistakes during divorce. While nobody enjoys sifting through financial records and other important documentation, you need to know your complete financial picture before moving forward too far. Another common mistake is not reviewing these documents. Simply gathering the information is not enough; you must understand it. If you do not have an accurate understanding of your family’s finances, how can you move forward? They Forget About Taxes All too often people find themselves with a large tax bill after divorce. Taxes can affect many parts of your divorce, so it is essential to understand the tax implications of your settlement. They Only Hire a Lawyer While hiring an experienced divorce attorney is certainly one way to help ensure a smooth divorce process, you may need other help. In complex divorce situations, for example, when multiple businesses are involved, or a variety of investments are involved, you may need to seek additional help. A financial planner or another specialist with a financial background can help you ensure you are making the best decisions possible.
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Preparing Financially for Divorce
If you are considering divorcing your spouse, you are likely dealing with a bevy of emotions. While your emotional happiness is certainly a vital factor to weigh while determining if you should divorce or not, you also need to consider another important factor – your personal finances. Before you make the final decision to divorce, make sure you are financially ready to divorce.
When Does a Court Award Attorney Fees to the Prevailing Party in a Family Law Case?
An award of attorney fees may seem like a unicorn to some: a mythological event that some swear they have heard of from others but not seen themselves. This can be disheartening news to some divorce or family law litigants who have little money but are hoping that, if they prevail in their case, the court will order the other party to reimburse them for the legal fees they expended.
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Can Holiday Gifts Be Counted Toward My Child Support Obligation?
Over the next several weeks, parents throughout Illinois will spend hundreds of dollars (if not more) on holiday gifts for their children – including divorced parents. For some nonresidential parents (that is, parents with whom their children do not reside full-time), the holidays can be an especially trying time, financially speaking. While not wanting to disappoint their children by failing to purchase gifts, many of these nonresidential parents may find it difficult to make lavish purchases for their children because of the nonresidential parent’s child support obligations. Are there circumstances in which amounts spent on gifts or other items for your child can be counted toward your child support amount?
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