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Contentious Divorce Proceedings Can Place Women at Risk for Future Financial Problems
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.
Managing Your Post-Divorce Finances Under the New Tax Laws
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.
Relationship Experts Advise Parents to Take It Slow When Dating After 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.
How the New Tax Laws Could Complicate Your Illinois 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
Cryptocurrencies in Divorce – Special Considerations and the Risk of Hidden Assets
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.
Investing Your Divorce Settlement Could Provide Long-Term Financial Benefits
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.
Anxiety is a Common Issue in Children of Divorce – How You Can Help Your Child Cope
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.
Examining How Child Support is Calculated in Illinois
Under Illinois state law, children are entitled to financial support from both their biological parents, regardless of whether the parents were ever married. However, that support is not unlimited. Instead, the state has a specific formula that is used to determine what a paying parent’s support obligation should be. Learn more about the way that child support is calculated, and discover how to determine when the aid of an experienced attorney may be beneficial for parents who are engaged in an Illinois child support case.
Is Child Support Owed?
Before an order for child support can be entered, the courts must first determine if support is owed. This starts with establishing parenthood over the child. In a marriage, this is presumed for both the mother and the father. If the parents were never married, the mother is usually presumed to be one biological parent, but the father must either acknowledge paternity, or they must request a paternity test to verify that they are the child’s biological parent. From there, the courts will examine other factors, such as the income of both parents and the amount of time that each parent spends with the child, to determine the amount of support that may be owed.
Can a Phone Application Be Trusted with Your Divorce?
As the world becomes more digital, so do the various aspects of our lives; that includes separation and divorce. In fact, there are several phone applications that promise an easier way to manage, coordinate, and track things like support payments, parenting time schedules, and documents. There are even applications that allow you to complete the entire divorce process, right from your smartphone – but can you really trust an app with such a sensitive and complex matter? The following explores the answer to this question, and it provides you with details on how to reduce the risk of costly oversights and mistakes while navigating through your divorce.
Divorce Helper Applications
Divorce helper applications, or those that are designed to help you track, manage, or coordinate certain aspects of your divorce, are rarely a cause for concern. In fact, many divorcing parties have praised these technological tools, saying they stayed better organized throughout the entire divorce process. We recommend apps that offer real-time adjustments and notifications for things like schedule changes and document sharing to ensure you get the most out of your app.
Getting Married? Experts Say You Should Also Plan for a Divorce
Discussing a legal document that outlines your divorce before you are even married may not seem like the most romantic move. However, experts are now encouraging couples to talk about their finances, as well as the possibility of a divorce, before they wed. Part of this is due to the increasing prevalence of divorce and second marriages among older adults, and the intentional delay of marriage among millennials. The increase in entrepreneurship and small businesses are yet another factor.
Thankfully, a prenuptial agreement can help in these situations (as well as others). Learn more in the following sections, and discover how an experienced family law attorney can help you plan for the worst possible situation without it tainting the joy of your impending marriage.
Step Out of Your Emotions
Falling in love, planning a wedding, and anticipating all that the future may hold can be exciting and it may even leave you feeling a little reckless. Just remember that you will be stuck with your spouse’s financial habits when reality sets in. If they happen to contradict yours (perhaps you prefer to live and spend for the now but your spouse likes to save for the future), that could lead to some conflict down the road. Be rational about it now, while you are still in the blissful stage of your relationship – and be willing to have the hard conversations before you have fully committed to a lifetime of financial habits that drive you insane.
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