Complete financial disclosure in an uncontested divorce helps with fairness and transparency. For example, it allows the court or the spouses to make decisions based on facts, not assumptions. Disclosure is more than a formality and protects both spouses. By making sure the divorce is valid and legally enforceable, financial disclosure reduces the chances that the spouses have to return to court later.
Erlich Law Office can guide you through the financial disclosure process and make certain that your agreement stands up in court. Call us at (630) 538-5331.
Why Full Financial Disclosure in an Uncontested Divorce Matters
Illinois law requires that both spouses complete a full financial disclosure, even if the divorce is amicable. Each spouse furnishes a sworn financial affidavit detailing his or her income, assets, debts, and expenses. The courts use this information to verify that the couple’s proposed division of property, debt, and support is fair and reasonable.
In a common scenario, couples may ask, “What happens to retirement accounts in an uncontested divorce?” Much of the time, they are marital property if earned during the marriage and must undergo equitable division. A Qualified Domestic Relations Order (QDRO) is a typical way to split accounts without penalties.
With complete and honest financial disclosure in Oakbrook Terrace, a spouse should not be able to hide income or assets. The urge for such concealment can be somewhat common, especially if one spouse handled the finances during the marriage.
Transparency makes sure that facts, not assumptions, drive decisions about alimony, property, and debts. Disclosing financials also is required to make sure both parties make settlement agreements with a clear understanding of their rights and responsibilities. Without accurate financial disclosures, the court could reject the agreements or later have to reopen cases due to fraud or misrepresentation.
What Must Be Included in a Divorce Financial Statement?
Illinois uses a standard financial affidavit to assist with complete financial disclosure in divorce. It covers:
- All sources of income: Wages, salary, bonuses, commissions, retirement benefits, public assistance, business income, investment income, rental income
- Assets owned individually and jointly: Real estate, home equity, bank accounts, cash on hand, vehicles, furniture, jewelry, electronics, retirement accounts
- Monthly expenses: Rent, mortgage payments, utilities, groceries, childcare, transportation, insurance premiums
- Debts and liabilities individually and jointly: Mortgages, credit card balances, auto loans, student loans, personal loans, medical bills
How is debt divided in a divorce? The courts or the spouses consider who took on the debt, who benefited from it, and each person’s ability to repay it.
How Much Does Divorce Cost?
Of course, when performing financial disclosure, it helps to understand the costs of an uncontested divorce.
An uncontested divorce should be relatively inexpensive, with flat fees or the total hourly fee perhaps being in the $2,000 range. The litigation for this type of split is nonexistent or minimal, partially accounting for the lower cost.
The cost typically includes legal consultation and document preparation, filing fees, and court appearances, if needed. Services such as mediation or dispute resolution can add to the final tally. Meanwhile, a contested divorce may cost $15,000 or more, depending on the variables.
How a Divorce Attorney Can Help Ensure Accurate Disclosure in Oakbrook Terrace
Having a divorce lawyer even in an uncontested split offers important advantages. One is full financial disclosure, since the process of gathering and sharing financials can become overwhelming.
Ensures Full Compliance
Incomplete or inaccurate financial affidavits can cause delays. They may even cause the court to reject a settlement agreement.
Avoids Common Mistakes
An uncontested divorce lawyer helps you identify what to disclose and double-checks for errors or oversights. Honest mistakes can occur during do-it-yourself divorces, but that does not mean they come without consequences.
People may forget to list an old retirement account or credit card debt, and these omissions could change the final settlement. In Illinois, the average credit card balance is $6,253.
Protects Your Rights
You might agree to an unfair settlement if you do not have legal guidance. Divorce lawyers work to ensure equitable and legal agreements for property division, debt allocation, and support.
Drafts and Files Documents
A divorce lawyer for uncontested cases can help with financial affidavits, draft your marital settlement agreement, and file the petition with the court. Important paperwork may include the summons notifying the other spouse that a divorce has been filed and requires a response, and the parenting plan if children are involved.
Financial disclosure in an uncontested divorce can be complicated. Contact us today at Erlich Law Office for guidance.
