Illinois residents can face challenges during divorce whether they are younger and have children or are just a few years away from retirement. For individuals who are age 50 and over, the divorce rate has doubled since 1990 according to data from the Pew Research Center. This is despite the fact that divorce rates have been declining overall. If a person is going through a divorce, it is important to manage money carefully.
This means not buying a house or other expensive items before, during or after the divorce proceeding. Instead, it is a good idea to create a budget that will allow a person to live a stable lifestyle now and many years into the future. It is also a good idea to work with a financial adviser who can help an older person prepare for retirement after his or her marriage has come to an end.
When making financial decisions related to a divorce, be sure to consider if they will trigger a taxable event. Ideally, an individual will think about the tax bracket that both he or she and that person’s former spouse will occupy. This may determine whether it is best to take a portion of a retirement account as opposed to the marital home or other assets that may be divided.
The end of a marriage may be an emotional experience for an individual. However, it may be best to speak with a legal professional about how to get it through it. Having an objective party review the case may make it easier to negotiate a settlement that is favorable both now and into the future.