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Divorce requires you to consider and make decisions on many things you might not have previously considered (i.e. where you will live and who keeps the dog). Financially savvy individuals also consider the long-term implications of a divorce, like how they will fund their retirement and protect their estate. Learn more about this consideration in gray divorces, and discover how a seasoned attorney can assist with the process to improve the overall outcome of your case.
Failing to Plan for the Unexpected
While death inevitably happens to everyone, people rarely think about it in advance. In fact, statistics indicate that less than half of all Americans have a will or trust in place. Unfortunately, this can have a devastating impact on their estate. Funds may be depleted in probate, assets may go unallocated, and children could be placed into foster care until a guardian can be appointed. Matters can be even more devastating if the individual happened to be going through a divorce at the time of their death.
During the divorce process, each party must make a number of difficult decisions. Some of the decisions are fairly simple and straightforward (i.e. who gets the pots and pans). Others, like deciding where one will live during and after the proceedings, can be far more challenging and are rarely considered in advance. To make matters worse, there are often practical, emotional, and financial implications involved. Learn what considerations can help to ease the decision-making process, and discover what an experienced divorce lawyer can do to improve the final outcome of your case.
Examining Your Options
When it comes to living options during and after a divorce, most people have only three: continue living in their current home, purchase a new home, or rent a new home or apartment. Some divorcing parties may also have the option to stay with family or friends (at least for a while), but such arrangements are usually temporary. For this reason, even parties with a fall-back plan are encouraged to consider their long-term living options.
Couples do not typically enter a marriage with the intention of divorcing. Sadly, divorce is the path that nearly half of all couples will take. What causes them to head that direction, and how can you avoid meeting the same fate in your impending marriage? The following information examines the most common causes of divorce, as well as how to avoid them, and it explains how a seasoned family law attorney can use a prenuptial agreement to protect your finances before your marriage even starts.
Fighting Dirty
No matter how much you love your spouse, you are not going to agree on everything. How you handle those disagreements could predict whether or not you will one day divorce. Name-calling, shaming, blaming, and other nasty fighting tactics can strip away the trust and give each of you the sense that you are no longer in a loving partnership. Over time, that can degrade your marriage to the point of divorce. If you notice that you and your spouse are starting to fight dirty, consider marriage counseling before things get worse.
Divorce can jeopardize the financial future of both men and women, but women tend to be at the highest risk for financial devastation. If contention, domestic abuse, or financial abuse are present in the marriage, that risk exponentially increases. Thankfully, there are steps that women can take to mitigate against a severe financial loss during their divorce. Learn more in the following sections, including what a seasoned, competent attorney can do to help with your Illinois divorce.
Women Remain at a Disadvantage in Divorce
Society has come a long way in the last few decades, particularly in the way of women’s rights. Sadly, we still have a long way to go. Women continue to make less than men in the workplace, even when they have the same level of experience and training. They are also more likely to make career sacrifices for their family, such as staying home to care for the children, rather than putting them in daycare. Alimony is also awarded less often these days, and thanks to the new tax law, it is likely to be less helpful for disadvantaged divorcing women than it once was.
Alimony, though awarded less frequently today than it once was, is still a component in some divorces. Thanks to the changing tax laws under the Tax Code and Jobs Act, the rules that once applied will be changing as well. More specifically, parties who pay alimony will not be eligible for a tax deduction if their divorce is finalized after December 31, 2018. Learn more about how this new law may impact your post-divorce finances and discover some strategies for minimizing the damage in the following sections.
Alimony Under the New Tax Law
The new tax law removes the deduction that alimony paying spouse once received. Sadly, this can keep them in a higher tax bracket, which may ultimately impact the amount of alimony that they are willing to pay. The receiving spouse, though no longer required to pay taxes on their alimony money, may receive a lower award, thanks to their spouse’s tax bracket stance. The new tax law may also hinder negotiations, making for a longer, more drawn-out divorce, which also drives up the cost of divorce. In short, the new law could have a significant impact on the finances of all involved parties, both during and long after the divorce.
Once the decision to divorce has been made, people often get excited about the future. Some are even ready to search for love. Relationship experts caution against moving too fast in the dating world if you have children, however. Learn more about why and discover how an experienced divorce lawyer can help to ease the stress of the divorce process for your entire family in the following sections.
Protecting the Best Interests of Children in Divorce
While divorce can be a painful process for all involved parties, children are typically at the greatest risk for long-term effects. Part of this is due to their position in the divorce (invariably caught in the middle unless the parents strive for and successfully implement some amicable co-parenting strategies and techniques), but there are other factors as well.
The fragile and rapid development of their brains can also place children at risk for maladjustment issues, and in the severest of cases, children may suffer from life-long mental health issues. Some studies suggest that children may also be at risk for immune system deficiencies if they are exposed to a particularly contentious divorce. Thankfully, parents can mitigate these risks by putting the best interests of their children at the forefront of their divorce.
Taxes, though not often discussed, are a critical element in almost every divorce, and they are especially important when alimony may be owed. Thanks to the new Tax Code and Jobs Act, everything about alimony and taxes will change, come the start of 2019. Find out how and discover what it could mean for your Illinois divorce in the following sections.
The New Tax Law and Divorce - An Overview
While the new tax law may not affect all divorces, it is likely to have a significant impact on cases involving alimony. Parties who pay support and complete their divorce after December 31, 2018, will no longer receive a tax deduction at the end of the year, and receiving spouses will no longer be required to pay taxes on the alimony they receive. At first glance, this might seem like a benefit for the family, but appearances can be deceiving.
Taking Money Away from Families
Divorce can be a messy and complex process, especially when there is a substantial amount of money involved. Sadly, cryptocurrencies, such as Bitcoin and Ethereum, are further complicating divorce. Some people worry that the digital currencies have also created a bit of a vacuum, where assets can be hidden and extremely difficult to trace, which could lead to an unfair distribution of the marital estate. Thankfully, there are some ways to mitigate the risks. Learn more in the following sections, including how the assistance of an experienced divorce attorney can help improve the outcome of your Illinois divorce case.
When Spouses Use Cryptocurrencies to Hide Marital Assets
Asset hiding is not a new issue in divorce, but cryptocurrencies are an entirely new beast. Like an offshore account, they can be difficult to trace, especially when the owner has transferred them offline to a USB device. To determine which transactions have taken place, digital forensic experts can mine a party’s email account. From there, the uncovered assets can be valued, added to the marital estate (if applicable), and equitably distributed.
Divorce can have a significant and negative impact on the financial aspects of one’s life, especially if they are financially disadvantaged (a non-earning spouse). Thankfully, these parties are often owed a settlement, which they are permitted to use however they see fit. Perhaps one of the most financially savvy moves is to invest the money, rather than spend it. Learn more in the following sections, including how an experienced divorce attorney can improve the outcome of your Illinois divorce.
Investing Can Provide a Lifetime of Income
Disadvantaged parties in a divorce are deemed as such because they lack sufficient income. Some also lack the health, skills, or training to obtain gainful employment right away. Such issues may entitle them to a settlement in their divorce, but it can also place parties at risk for divorce-induced poverty - especially if they fail to plan for the future. Some disadvantaged parties place themselves at even further risk by trying to maintain the same lifestyle that they enjoyed prior to the divorce. Sadly, that can cause them to run through their resources faster than anticipated, and often before a safety net has been created.
Science has long shown that children are vulnerable to experiencing maladjustment issues, such as anxiety, in divorce. How can you detect such issues in your child, and how can you help them cope? Learn more in the following sections, including how the aid of an experienced family law attorney can improve the outcome of your case, thereby decreasing the odds that your child will suffer from anxiety during or after the divorce process.
Understanding the Prevalence of Anxiety in Children of Divorce
Any child can experience anxiety, but the risk is low for the general population. Traumatic life events, including divorce, can increase a child’s risk of developing an anxiety disorder. In fact, in one study that compared the rate of generalized anxiety among divorced Spanish children between the ages of 8 and 12 years of age against the same-aged children who had not experienced a divorce, the rate of generalized anxiety disorder among the children of divorce was notably higher. As such, parents are encouraged to mitigate against the factors that may cause anxiety in a child that is experiencing a parental separation or divorce.
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