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The financial choices you make before filing for divorce can impact your case long after you start the process. Some people try to protect themselves by moving money, paying off debt, changing beneficiaries, or making big purchases. Others avoid looking at their finances because it feels overwhelming or uncertain. Both reactions can cause problems if not managed carefully. Illinois courts review marital assets, debts, income, spending, and financial records when deciding how to divide property and set support. Before making big financial changes, it is important to know how Illinois divorce law will treat your money, property, and debt.
One of the most serious financial mistakes a spouse can make before divorce is attempting to hide money or move assets beyond the other spouse’s reach. Under 750 ILCS 5/503, Illinois courts classify and divide marital property and marital debts during a divorce, and property acquired during the marriage is generally presumed to be marital unless a statutory exception applies.
Moving marital money from a joint account into an individual account does not automatically turn that money into separate property. The same is true if someone transfers money to relatives, creates an undisclosed account, or temporarily moves assets with the intention of getting them back after the divorce. Transactions like these can create credibility problems and may lead to closer scrutiny of the spouse’s financial conduct. We generally recommend preserving records, documenting account balances, and understanding the character of an asset before making a significant transfer. Or better yet, don’t make any significant asset transfers until you have received advice from an experienced divorce attorney.
Spending can become a big issue when a marriage is ending, especially if one spouse starts using marital money for things that have nothing to do with the marriage. Illinois law lets courts consider dissipation when dividing marital property under 750 ILCS 5/503. Dissipation usually means using marital property for something unrelated to the marriage during the time when the marriage is breaking down.
Examples include spending a lot on a romantic partner, gambling, buying luxury items, taking out cash without explanation, or other expenses that do not help the marriage. However, generally the everyday routine expenses are unlikely to be considered dissipation by a Court. Things like mortgage payments, groceries, utilities, medical bills, tuition, insurance, and other regular household costs are still part of daily life, even as divorce approaches. The main question is whether your spending changed in a big and questionable way once the marriage started to fall apart.
Many people who expect a divorce worry that their spouse will take all the money from a joint account. Acting too fast, though, can cause problems. Taking out all or most of the money does not mean you own it, and the money may still be seen as marital property that will be divided under 750 ILCS 5/503.
Sometimes, a spouse has a real reason to worry about having money for everyday expenses. In most cases, it is better to keep track of your balances, save account statements, and get advice before making a big withdrawal. After a divorce case is filed, 750 ILCS 5/501 lets Illinois courts handle temporary financial issues like maintenance, child support, and other short-term needs. We encourage clients to protect themselves, but not to take actions that could seem harsh or unfair later.
Financial records are often among the most important documents in a divorce. Tax returns, pay stubs, bank statements, retirement account statements, mortgage records, credit card statements, investment records, insurance policies, business records, and loan documents can help establish what assets and debts exist and how they should be classified.
These records can also be critical when one spouse claims that an asset is non-marital. Under 750 ILCS 5/503, tracing may be necessary when marital and non-marital property have been mixed. If you inherited money, owned property before marriage, or received a substantial gift, documents showing where the asset came from and how it was handled can become very important. We recommend gathering and preserving records before filing rather than assuming they will be easy to obtain later.
A common misunderstanding is that property belongs solely to the spouse whose name appears on the account, title, or document. That is not necessarily how Illinois divorce law works. Under 750 ILCS 5/503, property acquired during the marriage is generally presumed to be marital unless it qualifies for an exception.
For example, a retirement account may be in only one spouse’s name, but contributions made during the marriage may still be marital property. The same can be true for investment accounts, vehicles, businesses, and real estate. Selling, transferring, borrowing against, or liquidating an asset because you believe it is “yours” can complicate the divorce if the asset is later determined to be marital. Before making major changes, we recommend identifying how the property is likely to be classified.
Divorce does not erase debt. Illinois courts look at marital debts as well as assets when dividing everything under 750 ILCS 5/503. This means big credit card purchases, personal loans, cash advances, or new loans taken out right before divorce can become part of the financial dispute.
You still need to pay regular household bills, but spending on things you do not need can raise questions about who benefited and why the debt was created. If one spouse takes on a lot of new debt after the marriage starts to break down, the other spouse may argue that debt should not be shared. We recommend avoiding big unnecessary purchases and keeping good records of real family expenses before filing.
Some people think that lowering their income before divorce will mean paying less in maintenance or child support. This approach can cause serious problems because courts will look at why your income changed and whether you did it on purpose.
Under 750 ILCS 5/504, Illinois courts consider several factors when determining maintenance, including income, property, needs, earning capacity, employment circumstances, and the length of the marriage. A voluntary decision to quit a job, reduce hours, or avoid available income opportunities may not be viewed the same as an involuntary job loss. Before making a significant employment change, we recommend considering how that decision could affect the financial issues in the divorce.
Divorce can impact your retirement savings, real estate, debt, taxes, insurance, monthly bills, and long-term financial security. That is why it is important to make big financial decisions with a clear understanding of your whole marital estate, not just one part of it.
We encourage clients to understand their income, monthly expenses, outstanding debt, retirement accounts, investments, home equity, and other assets before filing. Maintenance may also become an important issue, particularly in longer marriages or where there is a significant difference in income. Under 750 ILCS 5/504, courts can consider income, needs, earning capacity, duration of the marriage, standard of living, age, health, and other relevant factors. Careful planning before filing can help prevent avoidable financial mistakes and make later negotiations more productive.
Preparing financially for divorce does not mean emptying accounts, hiding assets, or making dramatic financial moves before filing. In many cases, the better approach is to preserve records, understand your current financial position, identify marital and non-marital property, and avoid transactions that could later become disputed. Thoughtful planning can help protect your interests while reducing unnecessary conflict.
At SBK Law Group, we represent clients in Downers Grove, Illinois, and throughout Chicago from our office location in Lombard Illinois. We can help you evaluate property division, debt, maintenance, financial disclosures, and other issues before and during the divorce process.
If you are considering divorce and want to understand how to protect your financial interests, contact the Downers Grove divorce lawyers at SBK Law Group today at 630-427-4407 to schedule your consultation. We can help you assess your financial position before avoidable mistakes become part of the divorce case.
