4 common divorce settlement mistakes

On Behalf of | Oct 22, 2021 | High-Asset Divorce |

Every divorce in Illinois is unique to the individuals involved. However, there are some things that you shouldn’t do no matter your situation. Let’s look at the common divorce settlement mistakes that people make and how to avoid them.

1. Hiding assets or failing to provide all financial information

People going through a high-value divorce in Illinois are usually tempted to hide some assets by failing to provide all the necessary financial information. You will often find people putting away some money in an offshore account or transferring it to a family member or a friend. It doesn’t matter how you feel about your spouse; attempting to conceal assets can cause you a lot of problems with the law.

2. Hurrying up the process

Of course, no one wants to endure a long, drawn-out divorce, but if there are a lot of issues at stake, then you should take your time. You should work with professionals like divorce attorneys, financial advisors and forensic accountants to find the best way to reach a fair settlement. Illinois is an equitable state. Therefore, the judge will try to divide your marital property most fairly.

3. Not thinking about taxes

Transferring an asset from one spouse’s account to the other could carry some heavy tax consequences that would leave you and your ex-partner with little funds to show for. Therefore, failing to know how taxes work and to transfer property without heavy penalties is a big mistake.

4. Involving emotions in the process

It’s normal to be sad, worried or disappointed when going through a divorce. However, you cannot let feelings take the steering wheel when settling your issues. Think rationally, and make sound decisions for you, your ex-partner and your children.

The most important issues to resolve in a divorce are assets and children (if you have any). As such, you can’t let one or two avoidable mistakes determine your future. Take things easy, and think long and hard before making any decisions.