Divorce - Chicago Illinois Family Law Blog - Page 16
Important Steps to Take Once Your Illinois Divorce is Finalized
Recently, The Boston Globe featured an article that noted several important steps a newly divorced person should be sure to take once their divorce is finalized to protect themselves and their financial future.
First, you should close all joint credit accounts that you shared with your now ex-spouse. Be sure all your credit card bills and/or debts are paid and are closed, either by yourself or your ex-spouse if they are responsible. You should also close all joint bank accounts you previously shared and open new checking and savings accounts in your separate name. Failing to do so could have serious repercussions for your finances and credit score. If appropriate, change your name with the Social Security Administration (SSA) before opening new accounts.
What You Need to Know about Taxes and Divorce: Part II
In a previous blog post, we addressed the impact divorce has on filing taxes, and discussed what happens to taxes for a primary residence as well as what marital status a person should claim depending on their situation. Now, we will touch on other factors one must consider when paying their taxes after divorce, including child custody and alimony.
Recently, custody arrangements have become very complicated, with many parents sharing custody of their children over weekends or during the week. These arrangements become problematic in that IRS regulations and the most recent version of the tax code do not precisely define custodial parent or custody. In general, someone can only claim their children as dependents if they were the designated custodian by court order. If no such agreement or order exists, or if someone has joint custody of their child, the custodial parent is considered to be the parent that had physical custody of the child for the majority of the year. If custody is shared 50-50, many divorced couples alternate who claims the child on their taxes from year to year in order to share the tax benefit. It is illegal for both to claim the same child as a dependent in the same year. If there is more than one child, many tax experts suggest dividing the children’s dependency between the parents in order to avoid confusion. Even if both children spend the same amount of time with each parent, doing so is legal.
What You Need to Know about Taxes and Divorce: Part I
Filing taxes is a process that can quickly become complicated, particularly if someone divorced during the tax year. Generally, the rules for divorced taxpayers have not changed much over the past few years; however, divorce has, with changes in the way property and custody is divided. This makes figuring out what a person owes in taxes more complicated than ever. Time recently shared several tips to help those who are divorcing or already divorced when filing their taxes, which we will discuss in a two-part series.
For marriage status, follow the calendar. Even if a person’s divorce was finalized in 2011, in regards to 2010 taxes, they are still considered married. However, if someone’s divorce was finalized in December, they are not able to file as married, even if they were married for the majority of the year.
Study Finds Female GIs Have a Higher Rate of Divorce
MSNBC recently reported on a study which found that the marriages of military women are twice as likely to end in divorce as compared to the marriages of men in the military, and up to three times as likely for enlisted women versus commissioned officers. The percentage of women in the military who get divorced has been consistently high for close to a decade.
Approximately 220,000 women have served in the military in Iraq and Afghanistan, in roles that range from police officers to helicopter pilots. According to Pentagon data, about 7.8 percent of military women obtained a divorce, in comparison to just 3 percent of men in the military in 2010. Close to 9 percent of women who were part of the military’s enlisted corps divorced that year as well, compared to a little over 3 percent of the men.
Tennessee Supreme Court Considers Case Involving Lifetime Alimony Payments
According to My Fox Memphis, the Tennessee Supreme Court is considering a case that may change the way the state awards alimony by examining the bar for limited or lifetime payments.
The case involves the divorce of a couple who, since 2007, has been involved in a legal battle. In 2009, the Tennessee Court of Appeals ordered the man to pay $1,250 per month in alimony payments to his ex-wife, and the payments were to continue for life, unless she remarried. At that time, the ex-wife was 43-years-old and was making approximately $72,000 per year, while her former husband made $137,000 per year. The couple had been married for 21 years when the ex-wife filed for divorce in 2007.
Determine Your Post-Split Expenses Before the Illinois Divorce Process Begins
This is the conclusion of our three-part series on our blog about planning for your financial future while going through the divorce process in Illinois. In part one, we talked about reviewing your credit report and its significance in a divorce. In part two, we discussed why you should tally your marital assets and have them appraised. Finally, we will cover the importance of determining what your post-divorce expenses will be prior to beginning divorce negotiations.
Calculating living expenses, including child care, that were acquired during your marriage and then projecting those costs into the future can have a huge impact regarding who gets how much in the divorce settlement and why. According to a recent article on DailyFinance.com, it is recommended that both parties involved in your divorce attempt to find a way to work together at the start of divorce negotiations to conclude what your total household expenses were during your marriage to save time, as well as money, later on. It may also be beneficial to negotiate together the expenses of many of the ongoing costs that will occur once the divorce is final. You will also need to create your own estimates on expenses and budget projects because you will need to come to the divorce negotiations with someplace to begin.
Count and Evaluate Your Assets Before Beginning the Illinois Divorce Process
This is the second part of a three-part series on our blog that talks about Illinois divorce and your financial future. In the first part, we discussed why it is essential to review your credit report, which can help you determine what financial decisions will be the best in the long run. In part two, we will discuss steps to take before dividing marital assets.
Establishing the real worth of marital assets is not as simple as most people believe. However, a recent article on DailyFinance.com recommends several steps you can take to help make the process easier.
Get Your Finances in Order Before Starting the Illinois Divorce Process
Getting a divorce can be a traumatic experience. It is an ordeal that not only takes an emotional toll on those involved, but also a financial one. Even when a non-confrontational divorce is the goal, both spouses must be sure they are doing everything possible to protect the future of their finances. Unfortunately, many people in divorce aren’t aware what financial decisions will be best long-term. Sorting out a marriage’s once-intertwined finances can be challenging. Assets are typically not split down the middle; other legal issues like taxes and retirement funds must be considered. This is the first of a three-part series on our blog discussing divorce and your financial wellbeing.
A recent DailyFinance.com article discusses important financial steps a divorcing couple must consider before beginning negotiations to understand what advantages they have. Someone considering a divorce may also want to determine whether the divorce settlement must meet any financial needs. It is important to have a clear picture of finances before starting the divorce process.
Deciding Whether a Collaborative Divorce is Right for You
While the economy is still very uncertain, with reports of unemployment and a double-dip recession common, many facing divorce in Illinois may wonder if ending their marriage will result in bankruptcy. However, there are other options available instead of divorce litigation, including the Illinois collaborative law process or divorce mediation.
To decide whether the collaborative law process is right for your situation, there are a few factors to contemplate. The Huffington Post recommends that a couple facing divorce take the following into consideration:
Alienation of Affection: South Dakota Votes to Keep Law
Recently, the House Judiciary Committee in South Dakota voted to keep a law that permits a person to file a lawsuit seeking financial damages from someone who seduces and steals their spouse, reports PlainsDaily.com.
It was a 7-5 vote by the committee to reject legislation that would have abolished the law, which has been in effect since before 1889, when South Dakota became a state. The law allowed a husband to sue if another man seduced and stole his wife. In 2002, the law was changed to allow a woman to sue if her husband was stolen by another woman. The practice is often referred to as “alienation of affection” and seven states in the U.S., including South Dakota, still permit lawsuits for alienation of affection. The other states are Utah, North Carolina, New Mexico, Mississippi, Illinois, and Hawaii.
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