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Recent Blog Posts
The Importance of Forensic Accounting in High Asset Divorce Cases
High net worth divorce cases come with high risks and secret agendas. Forensic accounting can be vital in providing an equitable resolution during your divorce. Accountants use their experience to share valuable insights during valuation, track complex transactions, and uncover hidden assets. We explore the key advantages of working with forensic accounts in a high asset divorce below.
Use It to Identify Discrepancies in Financial Records
Navigating a high asset divorce can be tricky, especially if your soon-to-be-ex-spouse falsifies information to reduce spousal or child maintenance obligations. Forensic accountants can catch lies by tracing financial transactions and verifying records.
This includes:
- Reviewing financial documents and reconciling bank statements to ensure they are accurate.
Key Differences Between Contested Divorce and Uncontested Divorce in Illinois
The difference between contested divorce and uncontested divorce in Illinois lies in their execution and how the soon-to-be-ex-spouses communicate during legal proceedings. Both scenarios require legal representation. A divorce lawyer will handle negotiations, paperwork, and other aspects of the dissolution of marriage to streamline the process. We highlight the distinguishing factors between each divorce type to help you make an informed choice during your separation.
The Control Shifts in Contested vs. Uncontested Divorce
A contested divorce typically goes to trial because the couple does not agree on how to distribute marital assets or manage child support after separation.
Since the divorcing couple cannot reach a settlement, one or both parties request the court to intervene. The court uses the legal framework to determine an effective way to divide marital property and assets, parental responsibilities, and set conditions for child and spousal support.
Who Pays for a Child's College Expenses in an Illinois Divorce?
In Illinois, the court can require divorcing parents to pay for their children's post-secondary education. Family lawyers can help you decide how much you need to pay and how to divide those responsibilities during a divorce. The following is a brief overview of the statute that covers this area of Illinois family law.
#1. There Is an Age Limit for College Provisions
Section 513 of the Illinois Marriage and Dissolution of Marriage Act (750 ILCS 5/513) has set strict terms and conditions for college expenses. The provisions include the cost of five college applications, a minimum of two college entrance exam fees, and payouts for educational books and resources.
This includes post-secondary education costs for trade school and vocational school. The court does take both parents' financial status and future resources while dividing the college expenses equitably. Do you have to pay for college until graduation? Not necessarily.
Key Tax Implications of an Illinois Divorce
In Illinois, certain tax implications can significantly impact the terms of a divorce agreement. These should be discussed during negotiations. Some of them include the following:
Your Tax Filing Status
Whether you wish to join separately or together for the previous year will depend on when the divorce was finalized. For instance, if it was finalized on December 31st before 11.59 pm, that means you were not legally married before that time and can file separately for that year. Additionally, you may be able to file as the head of the household if you had child custody for at least six months of that year.
If the divorce was not finalized before the year ended, you and your ex-spouse could determine your filing status. If a party cannot decide, a judge decides how tax refunds and owed taxes are divided.
Cash and Property Awards in a Divorce Decree
Property and cash acquired pursuant to a divorce decree in Illinois are nontaxable for the person receiving them. This means the person providing them cannot deduct them from their taxes. The property and money that spouses own are presumed to be earned by the party – it is presumed they have already paid taxes on these.
Property Division for Stay-at-Home Parents
Who gets the marital home? Are stay-at-home parents eligible for spousal maintenance? These questions might keep you up at night before filing for a divorce in Illinois.
How Is Property Divided During a Divorce in Illinois?
The Illinois Marriage and Dissolution of Marriage Act divides marital assets equitably. It means that their rules on property division focus on a fair distribution of marital properties and assets instead of equal divisions.
Assets usually belong to both partners unless stated otherwise. Therefore, as a stay-at-home parent, you have the right to receive a significant share of the properties (i.e., money, investments, real estate property) acquired by your partner after marriage.
However, there are exceptions to this rule.
For instance, a prenuptial or postnuptial agreement may exclude some assets from the divorce settlement. Likewise, a property inherited by one spouse or purchased from non-marital assets may not be distributed.
Searching for Hidden Assets in an Illinois Divorce
When the stakes are high, spouses may use ulterior means to get a greater share of the marital assets. They may do this by underreporting their financial and property assets. As Kane County divorce attorneys, we have experience dealing with hidden assets during high-asset divorces and settling property divisions. If you suspect your spouse is not being honest, do not hesitate to ask for help.
How to Discover Hidden Assets in an Illinois Divorce
Documenting your financial records before filing for a divorce can help you build a better case against your spouse. However, sometimes spouses purposefully disguise assets to avoid equitable distribution during a divorce in Illinois.
They may avoid detection by lying about their income, making false investments, or asking a third-party like a friend or family member to hide the cash. Additionally, your spouse may open a retirement account, custodial accounts, and offshore account without your knowledge to funnel funds.
Crafting a Parenting Agreement: Ensuring Your Child's Best Interests
A parenting agreement, also known as a parenting plan, outlines how parents plan on raising their children following a divorce or separation. A well-crafted parenting agreement can help minimize conflict between parents and provide stability and predictability for the child.
However, the process of creating a parenting agreement can be complex and emotionally charged, requiring careful consideration of a variety of factors. This blog will provide practical tips on creating a successful parenting agreement that meets all legal requirements and prioritizes your child's needs.
Tip #1: Start with a Comprehensive Parenting Outline
The Illinois Marriage and Dissolution of Marriage Act provides an outline that can guide you through creating a comprehensive parenting agreement. Think of it as a template that includes decision-making, parenting time, transportation, and other sections. Starting with a template can help ensure you cover all the necessary topics in your parenting agreement.
Relocation and Visitation: Navigating the Challenges of Co-Parenting
Co-parents sharing responsibility for their children after divorce are bound to the terms of their parenting plan. But life can be unexpected. Changes such as a better job in another state, remarriage, or family illness can turn your plans awry. So how does that affect relocation and visitation rights?
Relocation Laws in Illinois
As per Section 609.2 of the Illinois Marriage and Dissolution of Marriage Act, a parent who wants to move a significant distance with their child needs to seek the court's approval first. Per Illinois law, relocating means moving more than more than 25 miles away if you live in one of the collar counties. If you live in a different Illinois county, a relocation is a move of more than 50 miles away, or more than 25 miles away if state lines are crossed.
If the parents disagree regarding the relocation, the court will make the decision about whether to allow the relocation.
Tips for Dividing Assets and Debts in a Divorce
Divorces that involve major assets and debts can be especially challenging. Couples with real estate, investments, retirement accounts, and other high-value assets must carefully navigate the division process. In any case, it is crucial to have a clear understanding of the laws and regulations surrounding property division in Illinois to ensure a fair and equitable settlement. This blog will provide tips and insights on approaching asset and debt division during a divorce. Read on to learn more.
Understanding Illinois Law for Assets and Debt Distribution
If a couple can agree on how to divide their assets and liabilities, they are free to distribute property and debt however they see fit. However, if the parties to a divorce are unable to reach an agreement, the case may proceed to court, where a judge makes the decision.
Child Custody Battles: Understand Your Options
In 2016, the Illinois legislature struck the term ‘custody’ from the Marriage and Dissolution of Marriage Act and replaced it with ‘parenting time and parental responsibilities.’ Parenting time refers to a schedule of how each parent spends their time with their children, which is approved by a family court judge. The court makes the schedule per the 'best interests of the child' if the parents cannot agree.
What Are Parenting Responsibilities?
A parent's decision-making responsibilities are called 'parenting responsibilities’ in Illinois. The parents can agree to share these responsibilities or one parent may have all decision-making authority. Parental responsibilities refer to major decisions about a child’s:
- Religion
- Health
- Education
- Extracurricular activities
As mentioned, an Illinois family court will allocate these responsibilities if the parents cannot decide or agree on them.
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