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Post-divorce financial planning

On behalf of The Walters Law Group, Ltd. posted in Family Law on Thursday, August 8, 2013.

Alimony in Illinois is a legal obligation to support a spouse financially at regular intervals before or after marital separation or divorce. Such support can be important to divorced individuals who were not employed during their marriages and have limited prospects for substantial income, but alimony may not last forever or even for long, so former spouses reliant on alimony payments to pay necessary expenses should plan to adjust their budgets accordingly.

Some family law practitioners say the time periods for alimony payments are getting shorter over time, and alimony is disappearing. Like any source of income, alimony can change and disrupt personal finances. Entitlement to alimony depends on the length of the marriage, marital assets and incomes and divorce negotiations. As in all family legal matters, a collaborative divorce or settlement out of court on the question of alimony may be preferable to a decision by a court.

Alimony can help the recipient enter or return to the workforce. To guard against dependence on alimony, the workforce offers a good alternate source of regular income. Alimony also can pay for an education or training program to update or enhance job skills.

Daily expenses could be similar before and after divorce, but income may be much different. Regardless of alimony, lifestyle and spending habits should change after a divorce, and it’s important to plan for lifestyle changes likely to come. Savings should be part of the budget plan, and life insurance, long-term care and disability should be considered.

Divorce can involve not only spousal maintenance but marital property division, child custody, support and visitation, and other issues as well. For advice, guidance and, if necessary, advocacy on these difficult and delicate matters, there is no substitute for the skilled, experienced divorce lawyer.

Source: Fox Business, “How to Financially Readjust for Post-Divorce Life“, Andrea Murad, August 02, 2013