The long-term financial impacts of divorce can be expensive. If both spouses worked during the marriage, they will now be going from two incomes to one, with their collective income now supporting two sets of living expenses, as well as funding two separate savings and retirement accounts. Essentially, removing the financial stability of a dual income home. However, planning ahead can help. If you are considering a divorce, many financial advisors and attorneys suggest taking the following steps, so you are on firmer financial ground if and when you decide to file.

Financial Steps To Take During a Divorce

Gather Documents - It is critical to know what your current financial standing is, especially if it has been your spouse who has been the one to primarily handle household expenses. The first step is to obtain all copies of any bank accounts and investments statements for the past year. If you and your spouse own property or vehicles, you also want to make sure you have copies of any deeds and/or titles.

When you and your spouse make the decision to get a divorce, your assets must be evaluated, in order to determine a fair split of the property you accumulated during the marriage. One of the most complex evaluations you will experience is the appraisal of any business you own together. Business valuations can quickly grow contentious and accusatory, and having the right attorney on your side may make the difference between an equitable settlement and a long period of fighting.

Potential Points of Contention

Unless there is a prenuptial agreement that addresses the distribution of the business shares, an apportionment (dividing-up of business assets) is necessary when a couple is divorcing. When a couple has worked in the same business, it can be quite difficult to tell what impact each spouse has had on the company, as opposed to as a collective. One of the most common issues that often needs to be addressed in business evaluations is the perception of each spouse and how it may radically differ. For example, one spouse may look at the business and see the worst-case scenario, while the other may see only growth.

Whether it is a one-time adulterous act or an ongoing affair, being cheated on is painful. Many marriages are unable to survive an act of infidelity. If you are getting divorced and your spouse cheated on you, you may wonder how this can impact divorce. You may wonder if you will be entitled to a greater share of the marital estate or will gain an edge in child custody matters because of the adultery. Read on to learn about adultery may influence a divorce case in Illinois.

Illinois Does Not Have Fault-Based Grounds for Divorce

When you ask the court to grant you a divorce, you will need to state the reasons or “grounds” for the divorce. Illinois is a no-fault divorce state. This means that there are no fault-based grounds for divorce. You will not mention your spouse’s infidelity as the reason for your divorce in your divorce petition. Currently, the only ground available in Illinois divorce cases is “irreconcilable differences.”

One of the most pressing issues in any divorce is the identification, valuation, and division of marital property. Some assets are easy to evaluate and distribute during divorce. Others require assistance from financial and legal professionals.

If you are a doctor with a private practice, you may question how your professional practice will be addressed during divorce. Many medical professionals assume that their practice is theirs alone. However, there are many situations where a medical practice is considered a marital asset to which both spouses are entitled. Even if the practice is considered a non-marital asset, the value of the practice is likely to influence several divorce issues, including property division, spousal support, and child support.

A crucial aspect of the divorce process is the division of the couple's assets and debts. Divorcing spouses may need to address the marital home, vacation homes, bank accounts, retirement assets, investments, business interests, and much more. However, to discuss these issues practically, both spouses must fully disclose their income, property, financial resources, and liabilities. Lying about finances, undervaluing property, or failing to disclose assets are all forms of financial fraud that can impact a divorce considerably.

What Does Financial Fraud Look Like?

Spouses who want to shield money or property from division during the divorce may use several different methods to falsify financial information. Some fail to disclose offshore accounts, business interests, or other assets that the other spouse is unaware of. Others undervalue the worth of assets. For example, a spouse may buy an expensive piece of art but report that the art’s value is only a fraction of its true value.