Posted on June 19, 2015 in Fathers' Rights

During the divorce process, it is often easy to become so wrapped up in the emotions of the marital split-up that one fails to think logically about huge issues such as property and asset distribution in Illinois. In fact, one's financial well-being in the future might be the farthest thing from one's mind. Making poor decisions during a divorce proceeding today, however, may cost a person for years or even decades to come.

One of the biggest mistakes people make when getting divorced is agreeing to things that are not written in their divorce decrees. Likewise, people sometimes expect things to happen that are not stipulated in writing. It is important that everything agreed to is in writing, as the other party during an emotional divorce may not always act in a rational manner in the future.

For example, if a future ex says he will pass a certain asset down to one's children when he passes away, this is based on a promise that might or might not happen if it is not recorded in writing. If the ex decides to remarry in the near future and start a new family, he might end up feeling less generous toward one's kids. Sometimes people avoid demanding that promises be written down in order to avoid conflict with their future exes, but this can quickly backfire on them.

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 Posted on June 18, 2015 in High Asset Divorce

After people finalize a divorce in Illinois, they may be eager to move on and stop focusing on the financial matters that required their constant attention and energy during the divorce proceeding. However, working to protect one's finances is only just beginning after a divorce has been finalized. A couple of tips may help individuals rebuild their financial health after splitting up with a spouse.

Building an emergency fund is an important step in recreating wealth following divorce. If necessary, a person may get a side job to earn extra money for building up his or her savings account. The emergency fund can prevent a person from having to use a credit card to pay for suddenly needed car repairs or other emergencies.

It is also important that any money remaining after a divorce continues to earn more interest. This is possible by making wise investments. Financial advisers can help people to choose the most advantageous investment vehicles. A person who must now pay child support following the divorce may not benefit from selecting a risky vehicle; instead, he or she may benefit from a guaranteed and steady flow of dollars.

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 Posted on June 04, 2015 in Alimony

Those engaged in divorce proceedings in Illinois and elsewhere typically seek to reach a peaceful settlement and resolve disputed matters in an amicable fashion. Nevertheless, couples sometimes face complicated issues and benefit from ongoing counsel and assistance. Illinois law states that martial property is subject to equitable property division in a divorce proceeding. This might bring about contested issues for one or both of the people involved.

Depending upon the circumstances, a court may split assets evenly between spouses who are proceeding to divorce. However, some situations might result in a different ratio, which could then lead to one of the spouses taking issue with the decision. It would be helpful to gain an understanding of the process and have an idea of what might occur before entering proceedings in civil court.

Attorneys at Fawell & Fawell, Ltd are experienced in cases involving property division during a divorce. Our legal professionals are able to assess the specifics of your case and let you know what to expect with regard to a possible court decision regarding the division of your marital assets. Terry Fawell has more than 30 years of experience and is prepared to help you negotiate a just and comprehensive outcome in your case.

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 Posted on May 26, 2015 in Alimony

Going through a divorce can deal a financial blow to a person in Illinois, especially if the individual has been financially dependent on his or her soon-to-be-ex. Fortunately, spousal maintenance may be awarded if one divorcing party has a monetary need and the ex has the ability to pay. Spousal maintenance can be either permanent or temporary depending on one's situation.

In 2015, the state of Illinois adopted a statue to make spousal maintenance awards more predictable. Under this new statute, a particular formula is used to determine how long a person must pay maintenance and how much he or she must pay in a case where the parties' total gross income is under $250,000. A total of 20 percent of the gross income of the payee is taken from 30 percent of the gross income of the payer; the payee is not able to get over 40 percent of their combined incomes.

In addition, how long the maintenance obligation will last is based on how long the marriage lasted. If two people have been married for 20-plus years, permanent maintenance can be established. Otherwise, the court may require the payer to make payments for a length of time equivalent to the marriage's length.

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 Posted on May 22, 2015 in High Asset Divorce

Getting married in Illinois can be both exciting and scary — exciting for those who believe they have found their soul mates — but also scary due to the fact that the marriage may not work. This is particularly a concern for those who are entering into marriages with valuable assets, as a divorce can cause them to lose a bulk of these assets. This is why drafting a prenuptial agreement may be a wise move to make before getting married.

A solid prenuptial agreement spells out specific financial arrangements in the event that a marriage ends in a divorce. In order for a prenuptial agreement to be effective, it is critical that both parties fully disclose their financial situations. Examining both individuals' most recent tax returns may help to ensure that both of their incomes, along with their assets, are accurately reported.

It is also wise to put together the prenuptial agreement well in an advance of the wedding. This is because, if the agreement is executed right before the wedding, it may be deemed invalid by the court, which may consider it to have been signed under duress. In general, prenuptial agreements are helpful for those who are marrying at an older age, entering a second marital union or who have children from a first union.

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 Posted on May 14, 2015 in High Asset Divorce

One of the touchiest parts of going through a divorce in Illinois is figuring out how to split assets with one's spouse. This is because the decision made during a divorce regarding assets has a long-term impact on a person's financial situation long after the divorce has been finalized. Retirement assets, such as a 401(k) or a 403(b), can especially be challenging.

A 403(b) is similar to a 401(k) plan, except it is given to people who work in education or who work for non-profit organizations or for the government. Splitting these types of retirement accounts is not as simple as splitting a marital house is. A house can be transferred to a spouse as part of a divorce settlement, or it could simply be sold for the benefit of both parties. However, dividing a retirement account requires the filing of a document known as a QDRO, or qualified domestic relations order.

The QDRO has to be approved and then signed by a divorce court judge as well as the administrator of the retirement plan. This order features all details about the transfer of some or all of the funds in the account. If the order is not submitted in a timely manner, this may result in tax consequences as well as legal issues that may extend one's divorce settlement.

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 Posted on May 08, 2015 in High Asset Divorce

Arriving at a divorce settlement that is pleasing to both parties going through the divorce is seldom easy. This is especially true when financial issues are at the heart of the divorce. A few tips may help people in Illinois to navigate the divorce process in a way that is most beneficial to them now and in the future from a financial standpoint.

First, it is important to obtain a court order known as a Qualified Domestic Relations Order, or QDRO, if one plans to receive part of a spouse's retirement account. Before doing so, it is important for a person to ensure that he or she is aware of every retirement account belonging to the spouse. Then, the individual must review each plan's individual rules concerning QDROs. It is expedient to have the retirement plan's administrator approve the QDRO before the divorce settlement is finalized.

Next, it is important to note that a person's ability to receive child support and alimony is based on the spouse's ability to make payments. It may be possible to place in one's divorce decree a requirement for the soon-to-be ex-spouse to get life insurance or disability policies as a kind of insurance in case he or she becomes unable to pay court-ordered support in the future. It is also necessary to determine whether to agree to a certain termination date for alimony or spousal support if it is not required by law.

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 Posted on May 01, 2015 in Child Custody

Although couples often fight over the marital home and other significant assets during an Illinois divorce proceeding, one of the greatest areas of contention is often child custody. Both parents may naturally want to keep the kids, thus leaving the children stuck in the middle of a heated child custody battle. Research, however, shows that a child is actually the healthiest mentally when the child can split his or her time between both of the divorced parents.

The research shows that a child who has two separate homes, and move often, report being less stressed than a child who lives in just one of the parents' homes after a divorce. As part of the study, researchers examined data on about 150,000 students between the ages of 12 and 15. They examined psychosomatic issues, such as difficulty concentrating, sleep problems, feeling tense and stomach aches.

Children were more likely to exhibit fewer of the psychosomatic issues when they lived with both parents after divorce. This shows that it is generally more important for the relationship between two divorced parents to be stable than for the housing situation to be stable for a child. The idea of co-parenting has received increasing attention in the media recently because of its positive effects on the entire family.

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 Posted on April 24, 2015 in High Asset Divorce

Divorce decisions are often the most expensive decisions people make. Just as a person may work hard over the years to build assets and achieve a healthy financial situation, it is important for an individual to tackle property and asset division during divorce strategically, thinking about the big picture. A few tips may help people in Illinois to make divorce-related decisions, while taking into consideration the financial consequences of those decisions.

In general, divorce usually cuts wealth that has been accumulated over the years in half. At the same time, a divorcing individual may notice that his or her expenses are magnified by a huge margin. This may particularly have a big impact on one's retirement planning goals.

It is wise to enter a divorce with the assumption that marital assets will be divided roughly equally. It is also important to note that any property that was acquired during the marriage is subject to division, since it will likely be considered a marital asset. Types of property subject to division include bank accounts, vehicles, real property, investment accounts, 401(k) plans and traditional pensions. Any property that ended up being commingled, even though it was initially separate, will also likely be treated as a marital asset. Even incomes earned during the marriage are considered marital assets.

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 Posted on April 16, 2015 in High Asset Divorce

A divorce can dramatically affect a person's finances both in the short term and the long term. Coupled with the emotional challenges of divorce, this type of family law proceeding can be complicated and overwhelming for individuals in Illinois. A few tips may help people going through a divorce make wise financial choices in order to protect themselves during and after a split.

A married couple has the benefit of splitting their living expenses and pooling their investment assets, which includes retirement accounts. However, after a marriage has been dissolved, it may be hard for the newly single individuals, who now have separate households, to stay on track with their retirement. The choices a person makes during a divorce when dividing joint retirement assets with a soon-to-be-ex has a direct impact on an individual's ability to reach his or her retirement goals.

When negotiating the split of retirement assets, it may be wise to enlist the help of a finance professional. These individuals can offer advice related to retirement, estates, taxes and investments. It is also important for a divorcing person to create a new budget based solely on his or her income and develop a practical strategy to save for retirement based on his or her new budget.

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