Divorce can be complex, especially with the involvement of substantial assets. When you are facing a high-asset divorce, take certain steps to prepare for the proceedings effectively.
An important thing to remain mindful of is the fact that Illinois follows the principle of equitable distribution, which promotes the fair but not necessarily equal distribution of marital assets.
Gather financial documentation
Collect all relevant financial records, including bank statements, tax returns, investment portfolios, real estate documents and records of valuable assets. Comprehensive financial documentation aids with an accurate assessment of your financial situation.
Create an asset inventory
Develop a thorough inventory of all marital assets and liabilities. This includes real estate, vehicles, retirement accounts, business interests, valuable possessions and debts. For example, Illinois has a 7.13% concentration of millionaires, higher than the national average. The median value of a home in the state is $203,400. A comprehensive asset inventory will facilitate a fair distribution of assets.
Evaluate your budget
Assess your current monthly expenses and income to determine your post-divorce budget. Understanding your financial position lets you plan your future effectively.
Protect your credit
Monitor your credit score and take steps to safeguard it during the divorce process. Close joint accounts and establish individual ones in your name. Address any joint debts as necessary to prevent negative impacts on your credit.
Update estate planning documents
Review and update your will, trusts and beneficiary designations on insurance policies and retirement accounts. Ensure that these documents align with your new financial situation and beneficiaries.
Prioritize children’s well-being
If you have children, make their well-being a top priority. Establish a parenting plan that outlines custody arrangements, visitation schedules and child support. Maintain open communication with your co-parent to ensure a smooth transition.
Divorce is emotionally challenging, including in high-asset cases. Seek support from friends, family or professionals to help you cope with the emotional aspects. Maintaining emotional resilience helps you make rational decisions.