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Posted on in Divorce

Geneva divorce attorneySometimes, life attacks from multiple sides. Sadly, it is not uncommon for those going through a divorce to end up in bankruptcy at the same time, with seismic changes to one’s finances as a result of debt restructuring. However, depending on your unique situation, it can be difficult to determine which proceeding should happen first and how to handle both.

Divorce First

Depending on the situation, getting a divorce before filing for bankruptcy can be the best path for many couples. There are two different types of bankruptcy filings, each named for the chapter of the U.S. Bankruptcy Code used for the filing. Chapter 7 is for individuals or couples with very few assets, while Chapter 13, also called a reorganization bankruptcy, is for those with steady income and debt that it is possible to restructure.

Kane County family law attorneyMany people are familiar with prenuptial agreements,or “prenups," and some of their pros and cons. However, what most do not know is that they can actually be quite complex and may include much more than standard asset division terms. They are also not as ironclad as popular culture paints them to be. It is imperative that before you enter into a prenuptial agreement, you should have a good understanding of exactly how they work.

What to Include and Leave Out

The are two common reasons why a couple may choose to into a prenup: to protect one spouse from the consequences of the other’s debt or to ensure that provisions are made for the children of a previous marriage. Inheritance laws in most states immediately default to a person’s children from their current marriage, so if there was a promise, for example, to save a personal item for a child of one’s first marriage, it can be advantageous to note that in a prenup. Prenuptial agreements are legally binding unless it can be proven that the agreement is unenforceable.

Posted on in Divorce

Kane County divorce attorneyFinancial infidelity can be devastating to a marriage. When a spouse lies about financial decisions or makes big decisions without consulting the other it not only takes an emotional toll but can also lead to serious financial hardship for the family in the future. A recent study released by the National Endowment for Financial Education showed that 31% of Americans have lied about money to their spouse, and financial concerns are among the leading causes for divorce around the country.

What Does Financial Infidelity Look Like?

Financial Infidelity can take many forms. If your spouse is being deceitful about money, you may notice that:

Kane County divorce lawyerIf you have made the decision to end your marriage, you are probably now facing a multitude of questions. Some are very reasonable, such as those regarding how you will support yourself after divorce or where your children will live. Others, though, can be even more confusing, especially if the answers should be straightforward but, for one reason or another, are not. For example, do you know how much your spouse makes each month? Are you sure? What about investments? Do you know where all of your money is? Obtaining a sound divorce settlement or judgment relies on the answers to these questions and countless others just like them, and a forensic accountant may be able to help.

What Is a Forensic Accountant?

Your divorce team could include experts from a variety of fields, including mental health, parenting, real estate, and financial planning, but a forensic accountant offers a very unique perspective. He or she is trained to assemble, review, and analyze financial records of an individual, family, and business to identify any possible discrepancies. By doing so, a forensic accountant is able to uncover hidden assets, discover secret revenue streams, and reveal misappropriation of marital and personal property. In addition to divorce cases, forensic accountants are also utilized extensively in investigations of money laundering and white-collar crime.

Posted on in Divorce

divorce, bankruptcy, Kane County divorce attorneyOne of the most often-cited cause of bankruptcy is divorce. Many people will find that after the end of their marriage, they also need a fresh financial start. Some couples even have to file for bankruptcy during a divorce. How can you avoid the divorce-to-bankruptcy pipeline?

Understand True Cost of Divorce

Many people do not understand the true costs of a divorce. Between filing fees, legal fees, expert witness fees, the longer a divorce goes on, the more expensive it gets. Sometimes divorcing couples fight about the property division so fiercely that they have to sell off more and more of their assets just to pay to continue to fight.

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