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Why divorce may help a person's finances

Illinois residents may dread the thought of getting a divorce. However, it may offer financial benefits that those who are close to the end of their marriage hadn't thought of. For instance, it could mean that an individual has greater control over how his or her money is spent. When the marriage ends, it may also mean an end to fights over finances.

If money is removed from a 401(k) pursuant to a qualified domestic relations order, the 10 percent early withdrawal fee might be avoided. However, tax will be owed if the amount withdrawn isn't rolled over into an IRA. While there may be risks by taking such an action, it may provide a person with financial flexibility. If a parent has a child who is going to college, it may be easier to qualify for financial aid when a household only has a single parent.

People who were married for at least 10 years may qualify for Social Security benefits based on the ex-spouse's work record. The former spouse won't know that this has happened, and it won't have an impact on how much that person receives. Divorce may also allow people to reset financial priorities or rid themselves of significant expenses such as a mortgage when giving up a family home.

The end of a marriage may be a time of emotional and financial upheaval. However, by having the assistance of an attorney or a financial adviser, it may be possible to get through it in a strong financial position. This professional advice can come in handy when negotiating a property division settlement agreement.

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The Law Office of Bradley R. Tengler, Inc. 728 North Court Street, Suite B Rockford, IL 61103 Phone: 815-981-4859 Fax: 815-997-5129 Rockford Law Office Map