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Recent Blog Posts
Three Possible Tax Implications of Getting Divorced in Illinois
When divorcing spouses in Illinois are negotiating fiscal issues like spousal maintenance and marital asset distribution, tax implications should never be far from mind. Divorce arrangements can differ significantly in terms of how much tax spouses will be paying or saving, and a divorce decree should never be finalized without understanding exactly what it means for your finances. Here are three areas to keep an eye on.
Child Dependents
When spouses are married, they claim their children jointly on their tax returns. After a divorce is finalized, only one parent can claim a child each year. Spouses who can work together can come up with any agreement that makes sense for them. Perhaps spouses switch off years, or certain children are always claimed by a certain spouse. Whatever the arrangement is, be sure to put it in writing so you do not accidentally trigger an IRS audit by both claiming the same child.
Asset Sales and Transfers
Debunking Three Common Myths About Men and Divorce
During the 1970s, the introduction of no-fault divorce laws in the United States made it much easier to get divorced and divorce rates subsequently skyrocketed. For many people, this was an unalloyed good; getting out of difficult or abusive marriages became much easier. But for decades, divorce laws definitively favored the mother when children were involved. Mothers often automatically received full custody and fathers had to fight an uphill battle in court to gain access to their children.
Today, divorce laws in Illinois are gender neutral and it is much easier for men to have shared parenting time and parental responsibilities. Nevertheless, myths about men in divorce persist. If you are a man seeking father’s rights in Illinois, here are three common myths and the truth about them.
Three Ways Mediation Can Help Your Illinois Divorce Move Faster
For most couples, divorce is a contentious process. Many years of hurt often culminate in divorce proceedings where the gloves come off and couples use issues like property division and parenting time as a proxy arena in which to hash out their personal differences. But taking this approach hurts everyone, especially if there are children involved, and can lead to a hostile divorce that takes much longer.
One solution to help couples avoid overly antagonistic divorce is called mediation. During mediation, a neutral third party who is specially trained in Illinois law helps divorcing couples discuss their differences with a focus on finding solutions. Mediation is not a perfect or easy process, but it can help a divorce move much faster - and therefore cost much less. Here are three ways mediation may help divorcing couples save time and get the divorce over sooner.
What is the Process of Divorce Mediation Like in Illinois?
While getting divorced is rarely easy, it does not always have to be a big fight that results in long, expensive court battles. Illinois encourages divorcing couples to pursue alternative dispute resolution strategies like mediation because both spouses tend to be more satisfied with the result.
What is Mediation in an Illinois Divorce?
Mediation is a process during which both spouses meet with a trained, impartial party (called the “mediator”) to talk about and negotiate issues in a divorce. These include, but are not limited to:
Will My Rolling Meadows Divorce Be Considered Contested?
Divorce is not easy - that is a truism that requires no further explanation. But while all divorces present challenges, some divorces are more difficult than others. Most divorces in Illinois are uncontested, meaning that spouses can cooperate enough to reach an agreement on all the issues at hand. However, if spouses simply cannot agree on one or more issues, or if there are complicating factors like domestic violence or a spouse who tries to hide assets, it is considered a contested divorce and may go to trial. If you are concerned that your divorce case may be contested, read on.
Why Are Most Divorced in Illinois Uncontested?
Illinois family courts and judges work hard to protect spouses (especially those with children) from the expense, difficulty, and longevity of divorce litigation. Everybody, including the court system, benefits when spouses can agree on issues because spouses are more likely to be satisfied with the terms of the divorce and more likely to abide by its decree. When spouses struggle to negotiate, mediation or collaborative divorce can help them reach an agreement about issues like property division, spousal maintenance, and a parenting plan. Even if one or both spouses are acting unethically, the expense and length of a court trial usually convince people that it would be best to settle their differences outside of court.What Issues Are at Stake in a Contested Divorce?
Three Reasons to Freeze Assets During Divorce
Once a couple has filed for divorce, their relationship has usually broken down to the point where spouses no longer trust each other. This is often especially true regarding finances since differences in financial behaviors contribute regularly to the reasons people get divorced.
If one spouse is worried that the other spouse may try to hide, spend, waste, or otherwise diminish a couple’s marital property before the asset division process is complete, they may apply to have their assets frozen with a financial restraining order. Although many states will automatically place a “stay” on a couple’s marital property during divorce, Illinois divorce courts do not automatically freeze a couple’s assets. Spouses will have to proactively apply for a financial restraining order.
Why Freeze Assets During Divorce?
Spouses may have one or more reasons to file a motion to freeze assets, including:
What Are the Financial Consequences of Divorce?
Getting divorced in Illinois is a stressful experience for what can feel like a million reasons. Will you have to move? How will the children handle these changes? What does this mean for your short- and long-term financial health? The answers to so many of these questions are difficult to know until the divorce proceedings get started, and the fear of the unknown can place enormous stress on divorcees.
Although you may not be able to control everything in your divorce, it is crucially important to focus on the realistic impact your divorce is likely to have on your finances. Doing so will help you remain calm and financially stable during the divorce and help prepare you for financial success in the future.
Before Divorce
Before the divorce proceedings start, it is important to take stock of your overall financial picture. In addition to the fact that the divorce will simply require you to collect this information, doing so will also help you comprehensively understand your assets and debts. Savings and checking accounts, retirement accounts, and any vehicles or real estate you own will likely need to be divided as marital property, and you will need to understand how much of your assets you are likely to be left with. If you can, try to save money and prepare yourself to live in a single-income household.
Divorcing a Spendthrift Spouse in Illinois
Most addictions manifest as a substance abuse problem, such as too much drinking or the use of illicit drugs. However, addictive or compulsive behaviors present themselves in many more ways than substance abuse. Gambling, shopping, and even overeating can all become compulsive behaviors that negatively affect a family’s life.
Financial problems resulting from a shopping addiction can devastate a family’s finances and ruin their future prospects. Although some people will seek help and overcome their compulsive behaviors, some will not or cannot, and their spouse ultimately needs to decide whether it is time to get divorced.
Protecting Your Finances
One of the first things someone divorcing a spendthrift spouse must do is take steps to protect their finances. Even if it may seem as though a financial situation is already too wrecked by compulsive spending to ever overcome, there are things individuals can do to protect themselves moving forward. Here are several steps to consider:
How Are Complex Assets Valued and Divided in Divorce?
Illinois couples getting divorced will have to divide their marital assets. Before an asset can be divided, however, it needs to be accurately valued. Certain assets, such as vehicles, can be valued quite easily. Other assets, like collectibles, businesses, and rental properties, are more difficult to value and divide.
This is especially true when the assets, or the individuals who own them, have a high net worth. Divorcing couples often need the help of outside experts who have experience finding out the value of particular types of assets. In this blog, we will answer common questions about complex assets in an Illinois divorce.
What Makes an Asset Complex?
A car’s value cannot be determined by dividing the car into separate parts that can be individually valued and sold. Rather, a car’s value is estimated by simply looking at similar cars that have sold recently in the area. A car is not a complex asset. In contrast, complex assets are made up of several components, and each of these components may need to be individually valued in order to determine the value of the overall asset. One of the most common complex assets is a closely held family business. Among the things that must be valued are the business's assets and debts, the business’s local reputation, and the business’s contracts.Retirement and pension accounts are further examples of complex assets. Financial portfolios may be allocated in many different areas, each with its own level of risk exposure. Couples getting divorced will have to obtain the overall value of their portfolios, and then weigh the advantages and disadvantages of negotiating for assets they hope to keep rather than liquidating and dividing them.
Will I Have to Pay My Spouse’s Student Loans if We Get Divorced?
Student loan debt presents an outsized portion of overall American debt. As of September 2021, Americans collectively owe more than 1.6 trillion dollars of student debt. The average debt per person is at an all-time high of nearly forty thousand dollars, while those who hold advanced degrees often owe enough money in student loans to buy an entire house.
For many couples, one or both partners obtaining college degrees promised a brighter future for their marriage and family. Whether or not this education actually resulted in better career prospects, the debt must be paid. This leaves many young couples wondering, "If we get divorced, will I have to help my spouse pay for their student loans?"
Are Student Loans Considered Marital Property?
If a spouse incurred student loan debt before getting married, this debt will almost certainly be considered non-marital debt and will not be divided in a divorce. But if a spouse accumulates debt of any kind during the marriage, it is generally considered marital property. This is true whether the debt is a mortgage, credit card debt, or student loans - even if only one spouse applied for the debt.
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