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Divorcing Illinois residents: avoid these financial blunders

Getting a divorce can be difficult for many individuals. Whether the two have been a couple for just a few years or have been married a long time, there are financial steps each one can take as they begin to live separately. Making a few good economic decisions may help ease emotions caused by the breakup and let both people get on with building their independent lives.

Be careful cashing in 401(k) accounts to pay bills or make a purchase. There may be a large sum of money that can seem to lessen financial hardships, but it can cost a bundle in the long run. A big mistake some people make is not having taxes withdrawn ahead when they take a 401(k) distribution. The IRS will also impose a 10 percent penalty on anyone under 59 ½ who takes an early payout.

When a divorce case gets to the court of family law, sometimes couples argue over who will get the conjugal home. It is important that informed decisions are made about the house. The facts need to be outlined, and resolutions should be well thought out. Will making the mortgage payment and affording the upkeep be easy enough? Is there a good reason one person should keep the house?

One big mistake divorced people make is not developing a sound financial plan. There are professionals that can help with this task, but it is imperative to think clearly about financial situations when getting divorced and that both spouses make their own plan.

Each spouse may want to seek the counsel of their own attorney who understands the ins and outs of family law. Divorce can be a complicated and emotional time, but with the right advice and thoughtful planning both people can get on with their lives.

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