What is Financial Infidelity?

 Posted on December 00, 0000 in Finances & Divorce

A new study from the National Endowment for Financial Education states that one in three couples is committing financial infidelity in their marriage. Financial infidelity can range from hidden credit card spending to secret receipts for big expenses. The key factor in the financial infidelity, though, is the intent to hide this behavior from their spouse. And this behavior can eventually result in marital tension or even divorce.

In the NEFE study, more than three-quarters of all respondents mentioned that “financial cheating” had hurt their relationship with their spouse. When the impact of financial infidelity reaches deep, all trust can be lost, especially when a spouse reveals a big gambling addiction or other financial obligation. At this point, it is very difficult to save the marriage and it leads couples to consult divorce attorneys.

Continue Reading ››

How the Economy Can Affect Divorce Rates

 Posted on December 00, 0000 in Finances & Divorce

While a marriage or divorce is often the result of a combination of emotional factors, it impossible to deny that finances play a major role in both. In marriage, tax benefits are generally available for both spouse, and the idea of combining two incomes is often a motivating factor—especially for younger couples looking to make ends meet.

Similarly, divorce also effects requires a number of financial changes and places economic demands on recent ex-spouses who must adapt to living on their own. It is little wonder that health of the national economy can be an influential force when it comes to keeping a marriage together or tearing it apart.

Money Matters

It may seem logical to assume that struggling economy would make life more difficult for married couples, creating added stress and pushing them toward divorce. In reality, however, the opposite seems to be true. Tough economic times tend to affect everyone in certain ways, but statistics suggest that a recessed economy actually keeps couples together rather than driving them apart. For some couples, this may be a result of trying a little harder in difficult times. For others, however, the question is simply one of money.

Continue Reading ››

The Challenges of High End Divorce

 Posted on December 00, 0000 in Finances & Divorce

Divorce is not always fraught with tension and difficulties between parties. Often amicable agreements and a shared understanding can make the process smoother. Either way, skilled legal representation is crucial to ensure all eventualities considered. Over 2,200 divorces and annulments in DuPage County occurred in 2013 alone, a number which equals about half of the marriages that took place. This demonstrates that divorce rates are significant and the process requires skilled legal advice and representation to navigate. This is more so in the cases of couples who have significant assets. These “high end” or “complex” divorces entail several more layers of analysis and an equally skilled divorce attorney.

Substantial Assets

There are several financial holdings that could contribute to a marriage accumulating significant assets. So, when it comes to dividing them and the “equitable distribution’ of assets, matters can get complicated. The court takes into consideration many factors to make a fair and just distribution of assets.

Continue Reading ››

Divorce Finances: Should You Open and Maintain a Secret Account?

 Posted on December 00, 0000 in Finances & Divorce

Both marriage and divorce create a wide variety of financial scenarios that impact both spouses, as well as children, over the course of months and years. Some believe the best way to maintain financial security, even before a divorce is considered, is to keep a secret account with funds of which your spouse is not aware.

Positive Aspects of a Secret Fund

Husbands and wives may find that opening a separate account apart from any joint accounts becomes a necessity. Some pros for doing so include:

• A “secret” account can be both financially and emotionally empowering. Some people need to maintain an element of individuality that marriage may not otherwise permit.
• Women’s advocates insist maintaining financial independence is important. Should a divorce become imminent that independence may be beneficial.
• You, and you alone, control how the funds of this account are spent.

Continue Reading ››

Where to Look for Hidden Assets

 Posted on December 00, 0000 in Finances & Divorce

If you are headed for a divorce, an amicable parting and division of marital property definitely is the best case scenario. However, it does happen when one party may attempt to conceal certain assets or even disguise the value of property in an attempt to get out of the marriage with more than the other party.

What to Look For and Where to Look

Here are a few things to look for when faced with a divorce, especially if you think it is something your spouse may have been planning for some time.

• Large sums of cash can be converted into artwork, jewelry, new tools, appliances, or sports equipment. If you notice a number of new purchases it is important to keep track of the date purchased and the value of the items.
• Using joint savings to suddenly repay a large debt. This allows the spouse to avoid carrying the debt after the divorce but have it settled with marital assets.

Continue Reading ››

Protecting Credit in Divorce

 Posted on December 00, 0000 in Finances & Divorce

Though the actual act of divorcing does not affect your credit score, divorcing can have an effect on your credit through indirect ways. Women, especially, have traditionally had issues with their credit ratings after divorce because men were traditionally the breadwinners of the families and controlled the finances. Although things have changed, there are still a majority of women who have financial issues after divorce. One of those issues is trying to rebuild credit after years of intermingled credit with their spouses. Understanding steps you can take before and after your divorce to help protect your credit can be crucial to your financial wellbeing. Close Your Joint Accounts The first step you should take after you begin the divorce process is closing all of you and your spouse’s joint accounts. Because the accounts are joint accounts, both you and your ex are responsible for the accounts and the debts accrued on those accounts. By closing the accounts, you are preventing your ex from spending any more money on them and designating the debt to one person, rather than both of you. Keep Paying Your Bills You should also remember that it is a top priority to keep paying all of your bills, even if you are going through a divorce. On credit cards, make at least the minimum monthly payment, and for mortgage payments, you should pay them in full. Even one missed payment can damage your credit score and can cause future lenders to deny you or raise interest rates for you. Establish Your Own Credit One of the more important steps you can take to protect your credit is to establish your own credit under solely your name. Getting a credit card that has a small limit, such as a credit card from a store, can raise your credit score if you pay off the card as soon as you use it. Get Help from an Experienced Aurora Divorce Lawyer

If you are thinking about a divorce, one of the things you need to address is your finances and how you will be financially after the divorce. With the help of a knowledgeable DuPage County divorce attorney, you can take the necessary steps to protect yourself and your credit during and after your divorce. Contact the Law Offices of Matthew M. Williams, P.C. to begin discussing your situation. Call the office at 630-409-8184 to set up a consultation.

Continue Reading ››

Ways to Financially Prepare for Divorce

 Posted on December 00, 0000 in Finances & Divorce

“I think we should get a divorce.” Whether those words came as a total and complete shock or it was only a matter of time until they were uttered, it is never easy to hear that your marriage is falling apart. Divorce is an emotionally draining process, but it can also put a strain on your finances. Luckily, you can alleviate some of that strain by making sure you are well prepared before you even begin the divorce process. Making sure your finances are in order before you begin can save you some stress and a headache or two in the long run. Gather Your Records

Your first step in preparing yourself and your finances for divorce is by gathering all of your financial records and making copies of them. You should make sure that you have copies of your:

• Bank account statements from the past year, including checking and savings;

Continue Reading ››

Financial Planning Tips After Divorce

 Posted on December 00, 0000 in Finances & Divorce

When you hear people talking about divorce, they are probably talking about one of three things: how it affects you emotionally, how it affects your children, or how financially debilitating it can be. Marital life typically means that all of your finances and assets are entwined with each other, making it a difficult and stressful time for you when you go to separate them. Divorce can leave you with a sad bank account, a less-than-favorable credit score and thoughts about how you will pay bills alone. Although these issues can weigh on you, there are things you can do to help yourself after your divorce.

Educate Yourself

Before you begin creating a plan of attack for your finances, you have to know what you are working with. One of the first things you need to do is to take stock of all of your assets and debts and determine what is now yours. Divorce means you will be splitting all of these things, though not necessarily equally, but equitably. Figure out what you are working with and then go from there.

Continue Reading ››

Using a Lifestyle Analysis in an Illinois Divorce

 Posted on December 00, 0000 in Finances & Divorce

One of the biggest questions people have when they begin the divorce process is how it will affect their finances. Many people forget how interwoven their lives become with their spouse’s lives until they go to separate them. Especially when it comes to your finances, things can become confusing and stressful. The decisions you make during your divorce will affect you for many years to come, if not the rest of your life. One of the ways you can ensure your finances are taken care of and your assets are distributed correctly is by having a lifestyle analysis prepared.

What Is a Lifestyle Analysis?

Simply put, a lifestyle analysis creates the basis for what your standard of living was during the marriage. It is basically the complete financial picture of the most recent years of your marriage. Your lifestyle analysis will include:

• The kind of living expenses that you and your spouse had;

Continue Reading ››

Financial Tips for an Illinois Divorce

 Posted on December 00, 0000 in Finances & Divorce

Getting a divorce makes many things in your life far more complex than usual. Your children’s living arrangements become more complicated, managing your time becomes harder and even having your work life and home life balanced becomes more difficult. One of the things that can be the root of much stress is your finances and if you are not careful, your divorce can wreak havoc on them. If you are getting ready to file for divorce or you are currently in the process of a divorce, these four tips can help you keep your finances organized and simple:

Close Your Joint Accounts

Once you have filed for divorce, you should make sure you close your joint accounts, whether they are checking accounts, savings accounts or credit accounts. By splitting the amounts of both your checking and savings accounts, you can begin the separation process for marital property. You should also make sure to close your joint credit accounts so you do not rack up any more marital debt.

Continue Reading ››