Divorce - Chicago Illinois Family Law Blog - Page 15
How an Inheritance Can Impact Your Divorce
This blog post marks the conclusion of our three-part blog series discussing critical financial issues that must be considered by anyone facing divorce. Anyone in Illinois who is considering divorce is well-advised to consult with a divorce attorney to learn more about how these issues and others may affect their financial wellbeing.
Inheritances
In Illinois, if one spouse inherits or is gifted any money or property during the marriage, that property is considered to be non-marital property, and it will remain the sole property of the spouse receiving such gifts, provided that the gift or inheritance begins and then remains titled to the spouse or in a bank account that is solely in the name of that spouse. If the inherited money or property is placed into “co-ownership” with the other spouse, such as by placing it into a joint checking account or having both names placed on the deed of the property, then the inheritance or gift may be considered a gift of the marriage, and therefore the character of the money or property may be changed to be considered a marital asset.
Custody and Credit Issues to Consider Before Divorce
This blog post continues our discussion of important financial issues that anyone facing divorce should reflect upon, particularly with the counsel of a highly trained lawyer that has experience with family law. It can be an unwise decision to begin the divorce process without taking these factors into consideration.
Your Credit Score
If you do not have a good credit history, it may be worsened by a divorce. To open a credit card, rent an apartment, or even interview for some jobs a credit report is often needed. Depending on how damaged your score is, you may not be able to live to the standard of living you were accustomed to prior to the divorce. Depending on the situation, it may be worthwhile to wait for some time to divorce, if the split is amicable, in order for you to work on increasing your credit score. In some cases, if one party has serious credit damage, it may be in their best interests to attempt to negotiate to keep the house or vehicle so they do not have to face creditors any time soon.
Financial Factors to Consider Before Divorce
There is much to be considered before a person decides to divorce their spouse. Divorce can be a long and difficult process, and many don’t understand that it can also inflict great financial damage to both parties. There are better or worse times to get a divorce, with regard to finances and both parties’ specific circumstances. Working with a skilled family law attorney can ensure that anyone who is considering divorce will understand the impact a divorce may have on their wallet. This is the first part of a three-part series that will discuss financial factors that must be taken into account by those facing divorce.
The Real Estate Market
First, getting a divorce during an unstable real estate market can have unintended consequences. In a “hot” market, you may be able to capitalize on your home’s value and quickly sell it; however, when it is “soft” and there is a surplus of homes on the market, you may burn through the equity in your home if you are forced to sell it due to divorce. Each person’s situation is different; however, it may be advantageous for some to have a divorce settlement in which one party stays in the home while the other party takes other assets to compensate for their share of the home’s equity. Doing so avoids selling and moving expenses, as well as real estate fees and land transfer taxes, among other costs.
Ex-Wife Claims Illinois Congressman Joe Walsh Owes Over $100,000 in Child Support
Recently, Illinois Congressman Joe Walsh was accused by his ex-wife of owing over $100,000 in child support. Walsh also failed to list any child support debt on his financial disclosure forms, on which politicians are required to include any liability over $10,000. As a result, he may also be facing a probe by the House Ethics Committee.
According to The Huffington Post, in December of 2010, Laura Walsh, his ex-wife, filed the claim against him as part of their divorce case, and alleged that he owed $117,437 to her as well as to the couple’s three children. She claims that the Congressman loaned at least $35,000 to his political campaign and went on extensive international vacations but then said he wasn’t able to afford child support payments either due to being out of work or between jobs. His attorney denies that he owes that amount in back child support and interest and insists that the amount owed is much less.
Why You Should Consider Signing a Confidentiality Agreement in an Illinois Divorce
A confidentiality agreement, or confidentiality protective order, outlines specific confidential information that both parties share with one another for purposes of their divorce litigation, but want to keep from public view or access. Under such an agreement or order, the parties agree that the information covered by the agreement will not be disclosed. These agreements may restrict both parties from using the information, or they may restrict only one party’s use of the information.
In most cases, these agreements are typically entered into for business purposes, but in some situations, a couple may sign a confidentiality agreement in Illinois. For example, signing such an agreement may be desirable if one spouse was in the public eye or if the couple ran a business together.
Maria Shriver Files for Divorce from Arnold Schwarzenegger Citing Irreconcilable Differences
The Los Angeles Times reports that Maria Shriver filed for divorce from Arnold Schwarzenegger on Friday, July 1, ending the couple’s 25 years of marriage. Shriver cited “irreconcilable differences,” and also requested joint custody of her and the former California governor’s two minor-aged children. The couple also has two other older children.
In May, the couple announced their separation, followed by the stunning news that Schwarzenegger had fathered a child with a former household staff member. In addition to her custody request, Shriver also specified that certain property should be considered separate, including miscellaneous jewelry obtained and earnings made after her separation from Schwarzenegger. Reportedly, the couple does not have a prenuptial agreement.
Bernie Madoff Fraud Victim Attempts to Renegotiate Divorce Settlement in Unusual New York Divorce Case
The New York Times reports on an unusual case in New York that has divided the legal community. In 2006, a couple divorced after 33 years of marriage and agreed to equally split their wealth. Two years later, however, the man wanted to revise their divorce settlement, following the news of the Bernie Madoff fraud case. The woman refused, and the man sued. The case has reached the highest court in New York.
While divorce agreements are typically rarely overturned, the man’s request is receiving increased attention due to the circumstances created by the Madoff case. When the couple’s assets were split equally, a large portion of money was invested with Madoff under the man’s name. The woman received her settlement in cash. In December 2008, when news of the Madoff scheme broke, the man filed to drastically change the terms of the divorce settlement, arguing that his ex-wife should have to give him millions of dollars she had received in the settlement to replace the losses he suffered due to the fraud.
Census Bureau Survey Discovers U.S. Divorces Decline Slightly, But “Seven-Year Itch” Remains
ABC News reports that new data released by the Census Bureau shows that divorces in the U.S. have tapered slightly after decades of steadily increasing. Couples are now more likely to achieve 10 years of marriage. However, the trend of couples getting a divorce after seven years of marriage, called the “seven-year itch,” remains.
The Census Bureau obtained the data after conducting its Survey of Income and Program Participation in 2009, which surveyed 55,497 adults who are or have been married. Approximately 75 percent of people who have been married since the 1990s reported they had been married for 10 years or more, an increase of around three percent as compared to people married in the 1980s, when divorce rates in the U.S. began to peak. The 1960s and 1970s saw the highest divorce rates as the result of new laws that were passed that made it easier and faster to divorce.
Study Finds a Connection Between Unemployment and Divorce
According to The Huffington Post, a recent study conducted by sociology professors at Penn State University found that, since the 1980s, divorce rates have consistently dropped when unemployment rates have increased.
The study analyzed data from all 50 states in the U.S. between 1960 and 2005. Researchers expected to discover that unemployment destabilizes marriage. Before 1980, this was true: when unemployment numbers rose, so did the number of divorces. Since the 80s, however, when unemployment rates have increased, divorce rates have declined.
Divorce Rates Increase as the U.S. Economy Recovers
ABC News reports that divorce attorneys across the United States have seen an increase in the number of couples who are seeking to finalize their divorce after months of indecision during the economic recession.
According to the vice president of the American Academy of Matrimonial Lawyers (AAML), John Slowiaczek, the increase is due primarily to finances. He notes that many law firms are seeing an increase in the number of clients they have as the country recovers from the recession. Specifically, his law office in Nebraska saw an increase of 25 percent from January through April of this year when compared to the same period in 2010. Linda Lea Viken, president of the AAML, says that the recession made it difficult for couples to divorce on both emotional and financial levels. She notes that many couples may have assets that have decreased in value, or may be facing foreclosure on their home, both of which make it very risky for divorce. Some couples may have also had fears about the burden of being entirely responsible for their own bills after the divorce.
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