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Splitting of assets during divorce is equitable in Illinois
In Illinois, marital property is divided in an equitable manner in divorce. However, the term equitable does not mean equal. Property may be divided in a wide range of ratios during divorce — for example, 50-50 or even 60-40 — depending on the circumstances surrounding a person's case.
In a long-term marriage, the divorce court will attempt to equalize debts, income and assets. In addition, 401(k) accounts, pensions and other types of retirement plans are treated as marital accounts and thus have to be divided, usually equally. Both spouses do have the option of swapping assets as well. For instance, one spouse may choose to keep the marital residence and simply negotiate a payment of cash in exchange for the future ex's share of the home's equity.
Any assets owned before marriage, along with any gifts and inheritances received during the marriage, are a person's to keep. This is true unless the person has put his or her future ex's name on these assets. In addition, these assets must be split if they have been comingled with other of the couple's marital assets. All assets need to be disclosed as part of a divorce proceeding.
Getting a divorce quickly may be wise if marriage is toxic
Ending a marriage in Illinois can seem scary, especially for those who have been married for long periods of time. However, getting a divorce is a wise move for those who simply cannot make their marriage work. Divorce is especially important in a couple of situations.
First, getting divorced is essential for those whose health is suffering as a result of their unfulfilling marriages. Stress prevents people from being at their best physical forms. Sometimes people think they can tolerate a bad marriage for another year or two, but their bodies may physically not be up for the challenge.
Getting a divorce right away is also paramount for those who are depressed. While going through the divorce process, it may be helpful to see a therapist to find out the root cause of one's depression. Having an objective outlook for talking about one's feelings may actually make navigating the divorce process a little easier.
Divorce is additionally a wise move for two people in Illinois who know that marital dissolution would be an amicable process for them. Just because two people are getting divorced does not mean the process automatically has to be a huge, drug-out battle over how their marital assets will be divided and how their shared property will be distributed. If the two individuals can see eye to eye during divorce negotiation or mediation, for example, they may be able to achieve a mutually satisfactory settlement with appropriate legal guidance. In this way, both parties can more quickly move forward with their individual lives.
Being proactive with finances can help after divorce
A divorce can be emotionally draining. It can also significantly impact personal finances. This is true no matter what a person's net worth may have been before the proceedings started. A couple of tips may help individuals to take care of themselves financially during and after an Illinois divorce.
First, it is essential for a person to re-title his or her assets following divorce. If two people owned assets jointly and one person retains some of these assets, they need to be re-titled in that person's name or in the name of the person's new living trust if he or she decides to establish one. This is especially critical for large assets, such as the family home.
Next, becoming familiar with investing may be appropriate. This is especially essential for people whose ex-spouses were the ones who used to handle the investing. It is smart to make a detailed analyses of all investments to assess their short and long-term benefits. Enlisting the help of a financial advisor to accomplish this may be helpful.
Decisions made during divorce may have tax-related effects
Tax season can be a complicated time for anyone in Illinois, but it may be especially challenging for those who are going through the process of divorce. The wrong decision during a divorce proceeding can have negative tax implications down the road. Some tips might help people to make smart decisions that will benefit them tax-wise in the years to come.
First, a qualified domestic relations order, or QDRO, allows divorcing spouses to roll a part of one party's pension plan into an IRA account of the other spouse without tax on the rollover. In this situation, the early distribution penalty will be waived. However, this does not automatically mean that rolling over pension plans is the best choice.
Rollovers offer distance from former spouses. They also allow people to have more control over their investments as well as more beneficiary designation choices. Another benefit is the possibility of deducting fees and no required withholding. However, remaining in the pension plan of a former spouse also has benefits; it could mean access to the fund for a person who is below 59.5 years old, along with potential protection from creditors.
Wise decisions may prevent bankruptcy following divorce
Divorce is often a stressful process because of both the financial and emotional components of this type of family law proceeding. Unfortunately, the divorce process has the potential to cause a person to go bankrupt. A few tips may help people in Illinois protect themselves financially in divorce.
When people get hurt or are betrayed, they naturally become angry. Therefore, it is normal to be angry and even feel resentment during the divorce process. However, it is not wise to treat the legal process like a weapon for wielding revenge on one's future ex-spouse. Trying to get back at one's future ex through the legal process will only end up costing large sums of money as well as two or three years of one's life.
This money is better spent purchasing the marital home or saving for retirement following the divorce. Likewise, it is better to spend time with the children than to financially harm one's ex-spouse. Divorce mediation is one potentially helpful way to reach a resolution during divorce that is beneficial and thus pleasing to both parties.
Myths about divorce might lead to poor decision-making
Sometimes divorce is inevitable if two married individuals have irreconcilable differences. Unfortunately, it can also be a stressful period for individuals in Illinois. Myths about the divorce process may cause individuals to make choices that might ultimately hurt them.
One of the top myths is that visitation may be denied if one's ex-spouse does not make child support payments. A process does exist to enforce obligations related to child support; however, threatening an ex or denying him or her visitation with his or her child is not considered one of them. Access to parenting time and the children has no link to child support.
Another common divorce-related myth is that committing adultery will cause a person to lose everything in a divorce. Cheating understandably may lead to divorce, but being unfaithful does not mean one will lose one's children, assets, home and rights. However, committing adultery and then wasting martial assets may be a factor in equitable distribution issues during the divorce process.
Focus on finances important in the midst of a divorce
When people get divorced in Illinois, one of their concerns naturally may be how they will be able to stay ahead financially. After all, in addition to causing emotional grief, a divorce can easily cause financial problems. A few tips may help people to take care of themselves financially following divorce.
First, if one is not working in a particularly lucrative field, it may be necessary to transfer one's stills to a position in a more lucrative and in-demand industry. This is a major part of making a financial transformation. Another step in the transformation process is to adjust how one spends and saves money.
Sometimes downsizing is one of the wisest things a person can do after getting divorced, as this can put a person in a more comfortable financial situation. In addition, it is important to attack any outstanding debt and say no to purchasing unnecessary items. The more frugal one can be, the more easily one can bounce back from the financial difficulties that often arise from divorce.
Asset division critical part of divorce process
Although divorce in Illinois can be a financially and emotionally trying process at any age, people going through gray divorces — or divorces in their later years — face a special challenge. They are closer to retirement and thus have less time to financially bounce back from a divorce before they reach their golden years. A few tips may help individuals to navigate the divorce process while protecting their retirement plans.
First, it is essential to take an inventory of all of one's assets. Any marital asset may become a potential retirement asset. It is especially important to consider assets, such as obscure employment benefits, including deferred compensation, stock options, HAS accounts, pension values and bonuses when dividing assets as part of a divorce.
It is additionally important to understand the risks that accompany different types of assets. For instance, one person may agree to allow his future ex-wife to run her business, but he would get 50 percent of the business's proceeds upon her sale of the business. The ex-wife might have promised to sell the business soon but then later changed her mind years after the divorce. In the meantime, the ex-wife is the only one who gets to benefit from the business's cash flow.
Determining who gets to keep the pet can be tricky during divorce
Nearly 80 million households in the United States, including many in Illinois, own pets. In modern society, more Americans are delaying giving birth to children, so pets have become an increasingly important — and contentious — aspect of divorce. Determining who will get custody of a companion animal can be tricky when two divorcing individuals do not agree on the issue.
From a traditional point of view, pets are viewed as property by the law. That means they are seen as being similar to house plants and couches. However, emotional attachment may turn beloved pets into valuable bargaining chips during divorce negotiations.
Judges have a great deal of discretion when it comes to dividing property during a divorce. People can strengthen their claims if they can prove that they used their own money — money they earned before getting married — to purchase the pets or pay for their veterinary bills. Judges are now also looking at other factors during divorces involving pets, such as considering the pets' best interests, as well as the best interests of the family members who love them.
Common mistakes can be costly during divorce in Illinois
Whether in Illinois or another state, the divorce process can feel like a roller coaster — not just emotionally but also financially. Unfortunately, failure to anticipate the twists and turns and to prepare for them accordingly may be costly. A couple of tips may help people to protect themselves during a divorce.
First, for a person who has children, a temporary custody order may help to create stability during this intense time for the family. Likewise, temporary child support payments may help to make sure that the children's basic needs are being met, such as day care costs, housing, clothing and food. Temporary alimony may also provide the spouse who earns less with money needed to cover his or her living expenses.
In addition, a mistake that is often made during divorce is to delay getting in touch with an attorney. Once a person files for divorce, essential decisions, possible court dates and deadlines quickly become focal points. This is why being as informed as possible is so paramount.
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