Free Initial Consultations
630-580-6373With offices in Naperville, Joliet, Wheaton, Plainfield & Chicago
630-580-6373630-580-6373
Divorce can be a costly endeavor - especially for the wealthy. In fact, the moderately wealthy tend to argue more than any other demographic group during divorce. Yet, interestingly enough, the extremely wealthy tend to divorce more amicably. Why is this and how can you protect your wealth, regardless of your marriage’s net worth? The following information explains.
Although contention over money is common across all income groups, those that are worth one million to five million tend to fight longer and far more frequently than any other group of divorcees. Interestingly enough, couples worth over five million tend to divorce more amicably. Relationship experts believe there is a reason for this. They say that, when you are only moderately wealthy, you are not set for life, and that lack of financial security can cause some to become hostile in divorce. Unfortunately, the desire to protect one’s wealth (and the social status that comes with it) can sometimes be the very thing that threatens their financial future.
Divorce is extremely common in the United States. In fact, an estimated 40 to 50 percent of all first marriages end this way. Perhaps even more common is divorce among entrepreneurs, who often sacrifice time with their families to spend countless hours building their businesses. Sadly, many learn that their spouse is entitled to far more of the company than they predicted, and some have even lost their businesses because of divorce. Thankfully, there are strategies that entrepreneurs can use to protect a business in a divorce. Learn more about them in the following sections, and discover how a seasoned divorce lawyer can help to improve the outcome in your case.
Whether started before the marriage or once it began, businesses that are not protected by a prenuptial agreement or postnuptial agreement are usually considered a marital asset. That means your spouse could be entitled to a share - how much depends on the contributions that they made during the marriage. Note that contributions are not just monetary, such as offering funds to stimulate company growth; a contribution can also mean staying home with the children so that the entrepreneur can network and attend meetings. If the family had to make substantial sacrifices during the business’s early years, this, too, could be considered a contribution to the business’s growth and success. It is also important to note that spouses who work as partners or contribute to the business directly are often entitled to even more shares of the company.
College tuition prices currently range between almost $10,000 and nearly $36,000 per year, depending on whether a student attends private or public college, and an in-state university or one that is outside their state of residence. Those figures, which have been increasing at an alarming rate over the last decade, are expected to rise even further over the next several years, which is why so many parents have college savings accounts for their children.
Unfortunately, if the parents eventually divorce, the child’s college savings account could be split between the parties. What is more, parents may find it more difficult to save for their child’s college tuition once the divorce has been finalized. Thankfully, there are preventative measures that can be taken during the divorce process to protect a child’s future education. Learn more in the following sections, including how a seasoned divorce attorney can help to improve the final outcome in your Illinois divorce case.
Divorce is a complex legal process with many potential financial pitfalls. This may be especially true if there is a retirement account, such as a 401K to divide. Laws and rules of the plan must be adhered to carefully or the parties stand to lose far more than just their future financial security. There is also the risk of severe penalties and extreme financial loss as early as the finalization of one’s divorce. Thankfully, it is possible to mitigate (and potentially even avoid) such issues. Learn more in the following sections, including how the assistance of a seasoned, competent divorce attorney can help improve the outcome in your Illinois divorce case.
Like all retirement plans, 401K pension plans have certain rules regarding early withdrawals (before age 591/2). Fail to follow them and you could face early withdrawal penalties from the plan administrator as well as taxation from the Internal Revenue System (IRS). Sadly, you can still lose money when you follow the rules of the plan. For example, you could lose money from losses or gains in the 401K if the divorce decree uses a percentage to divide the account, rather than an exact dollar amount.
Alimony, otherwise known as spousal maintenance, is not routinely awarded in Illinois. However, it is an element in some divorce cases. Learn how determinations regarding alimony are made, including how long you can expect to receive payments, and discover how a seasoned divorce lawyer can help you pursue the most favorable outcome in your case.
Most of the time, family courts use a set of statutory guidelines to determine the amount and duration of alimony payments. While the court may deviate from these rules, they must either provide a valid reason for doing so, or the combined annual income of the parties must amount to more than $500,000. In those instances, the court may weigh several factors to determine the amount and duration of alimony payments (i.e. the length of the marriage, contributions of each party to the marital estate, ability to work, education, etc.). Otherwise, an alimony award is usually determined using a two-step process.
Divorce can be a massive undertaking that has lasting emotional and financial implications for all involved parties. Divorce planning - a process in which parties plan for a divorce before they file - can help to mitigate many of the potential issues. Learn more about how it can help to improve your financial future and discover how a seasoned divorce lawyer can protect your interests and assist you with the process.
Studies suggest that approximately one in five married people hide money or debt from their spouse. What does that mean for you and your divorce? Perhaps nothing, but if your spouse happens to be one of the 7.2 million spouses that are being financially dishonest, you may be in for a big surprise once the divorce proceedings start. You could also be at risk for dissipated assets, crippling debt, or a reduced settlement in your divorce. Divorce planning not only helps you uncover hidden debt and money, it can also ensure you have the time, knowledge, and resources to effectively prepare for how such issues could impact your life in the long run.
When parents go through a divorce, they must determine how to divide the cost and responsibilities associated with raising their child(ren). Child support is sometimes awarded to the parent with the most time with the child, but even still, there may be added expenses not covered by the supporting parent’s legal child support obligation. Learn how you can determine who should cover child-related expenses after your Illinois divorce, and discover how a seasoned family law attorney can assist you with the entire process.
Under state law, children have the right to receive emotional and financial support from both of their parents. Child support helps to ensure that financial need is met. However, not all parents are obligated to pay. Instead, the state uses the income of both parents, the average cost of raising a child, and the amount of parenting time awarded to each parent in order to determine how much support (if any) is owed.
Divorce can negatively impact almost anyone, but women are more prone to experiencing nasty financial surprises during the dissolution of their marriage. Much of this is because women often abdicate financial responsibilities to their spouses, so they are unaware of what they own and unprepared for the division of assets. Thankfully, there is a way to remedy the situation. Learn more in the following sections, including how a seasoned Illinois divorce lawyer can protect your interests and increase the chances that you will have a healthy financial future.
In a study from Worthy, an online marketplace, nearly half of the 1,785 women surveyed experienced a nasty financial “surprise” during the divorce process. Those surprises varied, depending on how and if they managed their finances during the marriage, but some of the most common, unexpected issues that women experienced included:
Divorce may end a marriage, but it does not end the co-parenting relationship between a couple. In fact, children of divorce tend to fare best when both of their parents work together to protect the child’s best interests - and not just immediately after the divorce, but also as the child grows and their needs change. Back-to-school season is a good time to reexamine a child’s situation and consider if changes to the parenting plan may be in order. Learn more in the following sections, and discover how a seasoned, competent family law attorney can assist you with the process.
It is normal for parents to be protective of their time with a child; they grow up fast. Yet, it is critical that divorced couples consider and attempt to meet their child’s needs in every way possible. Part of this is because studies have shown that divorce does not necessarily create problems for children. Instead, children tend to experience poorer outcomes (i.e. struggling with relationships as an adult, poor academic performance, behavioral issues, etc.) when there is a great deal of contention between the parents. You and your spouse can protect your child from such outcomes by placing the needs of your child over your own wishes and desires.
If you signed a prenuptial agreement before the start of your marriage, you are among the small percentage of couples that decided to “insure” your assets against the devastating effects of a nasty divorce. However, a new tax law may now require you to reexamine (and potentially make changes to) your current agreement. Learn more in the following sections, including how our seasoned divorce lawyers can assist you with the process.
If your prenuptial agreement includes a provision for alimony, you may need to reexamine it, as the new tax law changes how alimony is handled after a divorce. Though alimony was once considered a deduction that payers could claim to lower their tax load at the end of the year, it will become nothing more than an added expense in divorces that occur after December 31, 2018, as the new law eliminates it as a deduction. Since the paying spouse is typically in a higher tax bracket than the receiving spouse, this change may leave less money for the family unit.
2224 W. Ferry Road, Unit 113, | |
1776 S. Naperville Road, Building A, Suite 105, | |
321 N. Clark Street, Suite 900, | |
58 N. Chicago Street, Suite 102, | |
2407 West Lockport Street, Suite 201-H, |
The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.
I have read and understand the Disclaimer and Privacy Policy.
