Understanding the financial implications of divorce

As someone working your way through an Illinois divorce, you may be devoting attention to where you will live and what type of child-custody arrangement you might land on moving forward. While considering such matters is an important part of a divorce, so, too, is recognizing that there are many financial implications involved in splitting from your spouse. At the Law Offices of Dwayne Douglas, P.C., we are well-versed in the many financial issues that arise amid divorce, and we have helped many Illinois residents navigate these and related matters.

According to Forbes, one of the most important financial matters to address during your divorce is what you plan to do with the once-shared home. For example, you may decide to sell the property and split the proceeds between you, or you or your former partner may decide to stay in the home by refinancing the mortgage, among other possible scenarios.

You will also need to figure out how the divorce will impact you and your situation, come tax time. You will need to determine which of you is going to file as head of household, for example, if you share children between you. You will also have to change your filing status once your divorce becomes final, which means you may end up facing a higher tax rate.

If you and your one-time partner also took out credit cards or a mortgage together, meanwhile, you will need to figure out what your obligations are and potentially update the names of the people allowed to use your cards. You can find more about divorce on our webpage.