The financial implications of a divorce can be messy. This is to be expected, especially since the impact of your finances and assets can impact your case both before and after your divorce.
In fact, changes in the financial situation of either you or your former spouse are often the reason there are post-divorce modifications necessary in many cases. In this article, we’ll explain why finances and assets matter both before and after your divorce and what you need to know for the future.
How Finances and Assets Affect Your Divorce Case
Illinois is an equitable distribution state. This doesn’t mean that bank accounts, property, retirement accounts, and other property will be divided 50/50 in your divorce. Instead, it means the Court will consider the earning potential, age, education, and other factors relevant to both you and your spouse to determine how to divide assets and set amounts such as spousal maintenance and child support.
After the Illinois Marriage and Dissolution Of Marriage Act changed on January 1, 2016, both spousal and child support are based on formulas set forth in the Act. These calculations are based on the current income of you or your spouse at the time of divorce. However, as you may imagine, this amount may change over time depending on whether you get a new job or perhaps even retire.
Post-Divorce Modifications Related to Finances
Post-divorce modifications are often made to one of three areas:
Let’s take an example to show how this works. Let’s assume you’re the spouse paying both spousal and child support and you go from making $80,000 in net income every year to $100,000 in net income every year. This will mean that your spouse will take you back to Court to increase both the amount of spousal and child support they’re receiving to reflect your increase in earnings.
Assets aren’t relevant after your divorce because all marital property is divided during the divorce (even marital interest in retirement accounts). Also, all non-marital property is awarded to the correct spouse during the time of divorce so there is nothing left to be divided here either.
Your Case Doesn’t End Once Your Judgment is Entered…
The best way to think of your divorce case is as a living, breathing entity. Support totals will change over time and end as children reach the age of 18 and spousal support may increase or decrease as well.
At Lawrence R. Surinak Ltd., we have over 35 years of experience in divorce and family law. During this time, we’ve regularly returned to Court on behalf of existing clients and new clients for post-divorce modification purposes.
To learn more about modifying your Judgment or to take advantage of your free 30-minute consultation, contact us at 630-470-9990 or fill in our simple online form. We look forward to assisting you with any needs you may have!