7 Common Ways to Pay for Divorce
From filing costs to attorney fees, divorce costs add up. Find what’s best for you by looking at seven common ways people pay for Illinois divorces:
- Personal Savings or Joint Accounts
- Borrowing from Family or Friends
- Using a Credit Card
- Getting a Personal Loan
- Taking Out a 401(k) Loan
- Cashing Out a Retirement Account
- Using Non-Marital Property
How finances work and how assets get split are two of the most important topics in a divorce. In Illinois, many assets are marital property, so they have to be divided between both parties. But then the question is–if so much gets split, where can the money you use to pay for your divorce come from?
It’s important to know your options, so that you decide based on what is best for you.
How to Pay for Your Divorce in Illinois
Below are seven of the most common ways people pay for their divorces. Everyone’s situation is different, so many people tend to use a mix of options. Whether it’s paying for some with savings and putting some on a credit card or taking some from your retirement and borrowing the rest from a family member, every option has its positives and negatives.
A good attorney such as one from Sterling Lawyers, LLC can help you assess your options because they have seen people use many different methods. Most of these options can also help if you are going through a different kind of family law case such as a child custody case.
Personal Savings or Joint Accounts
If you have the savings to pay for an attorney, that’s a great option because it won’t incur any interest like a loan or credit card. Before using your savings, you also want to think about all the costs that will come after the divorce. It may be better to hold onto part of your savings for something that you need cash for like a down payment.
Because Illinois is an equitable division state, they usually treat personal and joint savings accounts the same. This means that if you use money from one of these to pay for your attorney, the other party may deserve an equal portion out of the marital estate. It depends on whether things will be split 50/50 or not.
Also, if you use a joint account, know that the other party could notice if you withdrew a large amount. When deciding which option is best for you, it is also important to think about your safety.
Borrowing from Family or Friends
Borrowing from family or friends is a great option if your support system has the finances to help out. It can be really hard and even embarrassing to ask them for money, but the people who love you want to see you in a better situation.
The positive of this is similar to using savings in that you won’t have to pay interest on this money. The drawbacks are that not everyone has someone who can help them, and that it can be hard to ask for this kind of help.
Using a Credit Card
Paying an attorney with a credit card is common, but not always the best option. Credit cards have high interest rates, and how much you can pay with them depends on your limit. However, credit cards are convenient and don’t have to create debt if you are able to pay them off in a timely fashion.
Getting a Personal Loan
Personal loans can be intimidating because a lot of people don’t have a lot of experience with them. However, they often have better interest rates than credit cards. If you are interested in this option, it is best to look at more than one lender to see who has the best deal. The downside is that of course they are still loans so they will have interest.
Personal loans are also usually better than loans with collateral. For example, if you wanted to take out a home equity line of credit, the collateral is your house which is often a marital asset. If it is a marital asset, it can get really complicated quickly. If you are interested in something like this, talk about it with your potential attorney to decide what to do.
Taking Out a 401(k) Loan
Another option is getting a loan from your 401(k). This option is of course only open to people who have a substantial 401(k). Speak to your account holder to get exact information for you. For these loans, usually you get an interest rate that you pay back to yourself, you can only get up to 50% of the total amount in your account, and you have to pay it back within five years.
Cashing Out a Retirement Account
Cashing out a retirement account is rarely the best option because it can severely set you back. It can ruin your plans for retirement, and it usually means you’ll pay a higher tax on it compared to if you took it out in retirement.
If you don’t cash it out, the retirement account will be considered in the property division process. But the division of a retirement account is usually more in your favor than the division of cash.
Using Non-Marital Property
Non-marital property is the property owned by only one party, so it isn’t split during the divorce. One example of non-marital property is an inheritance or property gained before the divorce. If you use an inheritance to pay for your divorce, the other party doesn’t get anything in exchange. You can also fund your divorce by selling non-marital assets.
For Immediate help with your family law case or answering any questions please call (312) 757-8082 now!
Getting Money from Temporary Orders
In some cases, one party takes care of the finances, and the other party doesn’t have access to the marital accounts. If this is the case, the other party can be ordered to give them access or give them money in the temporary orders. This money can then be used to pay for an attorney if need be. Another time when the other party could be ordered to give you money is if they cleared out a joint bank account after they found out about the divorce.
What If You Can’t Afford a Divorce Lawyer
If you cannot afford an attorney and none of the above options will work for you, there are a couple options available. The one most people do is they decide to represent themselves. This takes a lot of time to do well because you still have to do things correctly and follow the relevant laws and statutes. If the other party also doesn’t have an attorney, representing yourself is easier.
If you are representing yourself, you may also be able to get advice from an attorney at crucial times in the divorce. This is cheaper than full representation because they only meet with you when you need it. If this is also not a good option for you, you can look for a pro bono attorney. Pro bono attorneys can be hard to find because there are often a lot of people who need their services. Another option is to look at using the help of an organization like the Illinois Legal Aid Organization.
Are you ready to move forward? Call (312) 757-8082 to schedule a strategy session with one of our attorneys.
Frequently Asked Questions
Can my spouse stop a default after the 30 days have passed?
Yes, in two ways. They can file a motion to vacate within 30 days of the default judgment under 735 ILCS 5/2-1301(e), which is granted relatively easily. After that 30-day window closes, they can still file a petition to vacate under 735 ILCS 5/2-1401 within 2 years, but they have to show due diligence and a meritorious defense, which is a higher bar.
What if I do not know where my spouse is?
You can ask the court for permission to serve by publication, but only after a documented diligent search. The search has to include contact with last known employers, friends, family, social media, online people-search resources, and motor vehicle records as appropriate. Publication adds time to your case and a weak diligent search makes the eventual default vulnerable.
Does the 6-month separation requirement still apply if my spouse is not responding?
Yes. Illinois requires irreconcilable differences as the ground for dissolution, and the court can find that ground after a 6-month separation. The separation period can run while your case is pending, so filing early does not necessarily delay you. Default does not waive any of the underlying grounds requirements.
How long after filing can I ask for a default?
You can file the motion for default once 30 days have passed since service was completed. The exact prove-up date depends on the court's calendar in your county.
Will I get everything I asked for in the petition?
Not necessarily. The judge has to find that what you are asking for is consistent with Illinois equitable distribution and best interest standards. Reasonable, well-documented requests usually go through. One-sided or punitive requests often get modified.
Do I have to go to court for a default divorce?
Yes. The prove-up hearing requires you to appear in person or, in some counties, by remote video and testify under oath. The hearing is brief but mandatory.
What happens to property and debt my spouse never disclosed?
A default judgment generally addresses only the property and debt identified in your petition. Hidden assets discovered later may require a separate proceeding to address, and the timeline and difficulty depend heavily on what was hidden and when you found out.
How much does a default divorce cost at Sterling Lawyers?
Sterling uses fixed-fee pricing for divorce matters in Illinois, so your total cost is set before we start work. The fee depends on whether minor children are involved, whether service requires publication, and the complexity of property and support issues. During your consultation, we give you the full fee tied to your specific situation so there are no surprise bills later.
Can I get a default if we have minor children?
Yes, but the court applies extra scrutiny to the parenting plan. A proposed plan that ignores the other parent's relationship with the child or that skips the best interest analysis will not be entered as drafted. Defaults involving children take more preparation, not less.