Steele Law Offices, LLC

Your hometown attorney for life’s legal matters

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Call 618-310-0844
to speak with Randall 

Steele Law Offices, LLC

Your home town attorney for life’s legal matters

Pay Now | Visa | MasterCard | American Express | Discover
Photo of Randall P. Steele

Personally investing in each client’s legal
objectives and achieving those goals together.

Photo of Exterior of the Office Building of Steele Law Offices, LLC

Personally investing in each client’s legal
objectives and achieving those goals together.

Photo of Exterior of the Office Building of Steele Law Offices, LLC

3 ways to financially prepare for divorce

On Behalf of | Dec 1, 2023 | Divorce |

Divorce can bring significant financial changes. Preparation is key to navigating this transition smoothly.

In the state of Illinois, understanding how to handle your finances during a divorce is important for a stable future.

1. Create a detailed budget

Begin by outlining your monthly income and expenses. Categorize your spending into essentials like housing, utilities, and groceries, and non-essentials, such as entertainment and dining out. This clear snapshot of your financial landscape will help you make informed decisions during the divorce process. Be realistic about your spending habits, and identify areas where you can cut back if needed.

2. Build an emergency fund

Establishing a financial safety net is necessary for weathering unexpected expenses. Aim to save three to six months’ worth of living expenses in an easily accessible account. This fund can serve as a buffer during the divorce proceedings, providing peace of mind knowing you have a financial cushion.

3. Understand your assets and debts

Take inventory of all shared and individual assets and debts. This includes bank accounts, retirement funds, real estate and outstanding loans. Knowing the full extent of your financial picture empowers you to negotiate a fair division of assets during the divorce. Keep detailed records of account statements, property deeds and loan documents for reference.

While Illinois’ divorce rate was well below the national average in 2021 at 1.3 divorces per 1,000 population, many couples know it is the best decision. Approaching divorce with a solid financial plan is necessary for navigating this challenging period and preparing to embark on this new chapter in your life.