If you are getting divorced, you may be well aware of the financial consequences of ending a marriage. You may have already started gathering financial documents and creating a budget for your post-divorce life. Financial concerns are a major part of the divorce process. Not only do spouses have to divide marital property and address issues like child support and spousal support, they must also deal with the tax implications of these matters. The decisions you make during your divorce can impact your finances for years after the split. This is why it is important to research your options and work with an experienced divorce attorney.

Handling Tax Returns in the Middle of a Divorce

Filing taxes is already stressful. Filing taxes in the middle of a divorce is even more confusing and overwhelming. If you are getting divorced, you may wonder if you can still file jointly. According to federal law, you may file a joint tax return if:

• You were still technically married as of December 31 and
• Both spouses agree to file jointly

By filing jointly, you may enjoy a decreased tax obligation. However, filing jointly may also mean that both spouses are liable for any tax penalties.

For many Americans, winter is synonymous with the holiday season. Whether you celebrate Thanksgiving, Christmas, Hanukkah, Kwanzaa, or take part in other cultural celebrations, divorcing during this special time of year is especially challenging. Consider the following tips for coping with divorce from mental health professionals.

Make Concrete Plans Regarding Your Shared Children

Separating from your spouse during the holidays is hard enough. Adding children into the situation makes it even harder. If you share children with your soon-to-be-ex, make solid plans for the holiday season. Include detailed information about which parent will have custody of the children and how the children will be transported between houses. Put these plans in writing.

Prioritize Peace of Mind Over Gifts

For many, buying gifts for others is even more enjoyable than receiving gifts. If you are someone who takes pride in finding the perfect gifts for your loved ones, you may feel pressure to maintain this high standard this holiday season. However, it is important to priories your own health and wellbeing. Do not go overboard buying gifts when you should be taking care of your own needs.

When a couple gets married, few describe the union in terms of the marriage’s legal significance. However, it is important to remember that marriage is a legal relationship between two people. Undoing that legal partnership through a divorce can take a significant amount of time and money. However, the cost of divorce ranges dramatically from case to case. If you are thinking about divorce, consider the following factors to estimate how much the divorce will cost.

Estimating the Financial Cost of Your Divorce

When it comes to divorce, it is nearly impossible to predict the exact cost ahead of time. Multiple factors influence the total cost, including the complexity of the couple’s financial situation and what issues the spouses disagree on.

According to Business Insider, the average cost of divorce in the United States is approximately $15,000. However, some divorces cost much less, and others cost much more. If a couple owns few assets, has no children, and agrees on the relevant divorce issues, they may be able to get divorced for as little as a couple of hundred dollars. Divorce cases that go to trial can result in overall costs of $50,000 or more.

Originally posted: April 10, 2019 -- Updated: 11-9-2021

UPDATE: Illinois law has allowed prenuptial agreements and postnuptial agreements for decades. However, for many years, people misunderstood these important legal protections. In 2021, prenuptial agreements are more popular than ever - especially among the younger generation. 

Prenuptial agreements can protect an individual’s assets and shield them from their partner’s debts. Prenuptial agreements or “prenups” are especially beneficial for business owners, older couples, and individuals with high-value assets. However, prenuptial agreements must be properly executed to be legally enforceable.

Millions of parents make the selfless decision to sacrifice a career for the benefit of their children. If you are a parent who has not worked outside of the home in several years or longer, you may be worried about how you will make ends meet if you get divorced. Sadly, many spouses stay in unhappy marriages because they are worried that they cannot manage without their spouse’s income. Fortunately, divorcing spouses in Illinois have several options for seeking financial assistance - both during and after the divorce.

Child Support and Spousal Maintenance

In Illinois, parents with the majority of the parenting time are typically entitled to child support. Illinois courts use the Income Shares model for child support to calculate the amount of child support a parent receives. Both parents’ net income is used to determine child support payments.

Spousal maintenance is awarded less frequently than child support, however, it is possible to get spousal maintenance in an Illinois divorce. If you do not have any marital agreements, such as a prenuptial agreement dictating spousal maintenance, you can petition the court for maintenance. The court will evaluate factors like the duration of the marriage, the standard of living during the marriage, financial resources and needs of each party, and employability of each party when determining maintenance.

During an Illinois divorce, you and your soon-to-be-ex will need to address several important issues, including but not limited to the division of complex assets such as business interests and retirement accounts. You may also need to address complicated child-related concerns like child custody and child support. Reaching an agreement about these issues becomes much harder and more complicated when a spouse is not forthcoming about information. The discovery process is the fact-gathering portion of a divorce case. If you are engaged in a high-conflict divorce or a divorce involving complex assets, the discovery process may be quite involved. Consider the following tips for preparing for divorce discovery.

Gather Financial Records and Other Important Evidence

During discovery, your attorney may use several different methods of gathering information from your spouse. Of course, your spouse’s attorney will do the same thing. Gathering financial records like tax returns, pay stubs, mortgage documents, and loan applications ahead of time can make the process go more smoothly. Your attorney will help you understand what you will be asked to provide during discovery. Keep copies of text messages, emails, voicemails, and other communications with your spouse, as these may be important as well.

Make Sure You Have a Strong Support Network

Divorce litigation can be very demanding. Sharing personal information and discussing emotionally charged topics like who will get most of the parenting time or how hard-earned assets will be divided is understandably stressful. You need a strong support network to help you through this difficult time. Friends and family members can be extremely helpful, but many divorcing spouses also gain valuable support from professionals like divorce coaches or mental health counselors.

A university education can set up a young person for long-term career success. Unfortunately, college is also increasingly expensive. The average cost of just one year of college education in the U.S. is over $35,000. Out-of-state colleges and private colleges can be even more expensive. If you are a divorced parent or you are considering divorce in the near future, you may wonder how these costs are addressed. Is college included in child support payments? Are divorced parents required to split the cost of a university education? Read on to learn more.

Educational Expenses for a Non-Minor Child

When parents are unmarried or divorced, one parent may be required to pay child support to the other. These payments help the parent with the majority of the parenting time cover housing, education costs, childcare, and other child-related expenses. A parent’s child support obligation typically terminates once the child grows into an adult. However, it is possible for child support to extend past the child’s 18th birthday. In an Illinois divorce, parents have the opportunity to petition the court for non-minor child support to cover college expenses like tuition and housing.

How Much Does Each Parent Pay?

If parents cannot reach an agreement about how to finance their child’s university education, the court may step in and decide for them. The court will consider both parents’ income, property, and overall financial circumstances. The student’s own financial resources, including income from a part-time job, scholarships, and grants, are also factored into the court’s decision. The standard of living established during the marriage and the child’s academic success can also play into the court’s decision.

Pregnancy is supposed to be a joyous time full of expectation and excitement. Unfortunately, life does not always turn out how we expected. Some pregnant women find themselves in a marriage that they no longer wish to be a part of. If you are currently pregnant and you wish to divorce your spouse, you may have questions. Can you get divorced while you are pregnant in Illinois? How does pregnancy impact the divorce process? Will the father automatically be considered the child’s parent? How are child support and child custody handled in a situation like this?

Illinois Law Regarding Divorce and Pregnancy

In 2021, there is only one ground for divorce in Illinois: irreconcilable differences. As long as you meet the residency requirements and can assert that irreconcilable differences have led to the marriage’s breakdown, you will be granted a divorce. This is true regardless of pregnancy. However, there are ways in which pregnancy can impact divorce issues.

Child Custody Concerns and Pregnancy

Illinois law presumes that a woman’s husband is her child’s father. Of course, extramarital affairs happen every day and this is not always the case. If your baby’s father is your current husband, he will have the same parental rights as any other father after divorce. Unless there is sufficient evidence that he is an unfit father, he will have the right to pursue parenting time (previously called visitation.) Furthermore, you will have the right to pursue child support.

In most divorce cases, couples will need to address multiple types of legal and financial issues as they work to separate their lives from each other and legally terminate their marriage. These issues can be especially complicated in a high net worth divorce, and if a spouse is a business owner, ownership of business interests may need to be addressed during the property division process. Whether a business is part of the marital estate or is owned separately by one spouse, a business valuation will usually need to be performed to ensure that the parties fully understand what this asset is worth. By understanding the procedures followed during a business valuation, spouses can ensure that they will be able to determine the value of their property and divide their assets fairly and equitably.

Business Valuation Methods

Business owners and their spouses will often need to work with experts such as financial analysts or forensic accountants to ensure that the value of a business is calculated properly. These experts may use one or more of the following methods:

• Asset-based valuation - The most straightforward way to determine the value of a business is to add up all of its assets and subtract its liabilities. Assets may include physical items such as inventory and equipment, as well as real estate holdings, intellectual property, accounts receivable, and intangible assets such as goodwill and reputation. Liabilities may include any debts owed by the business, as well as obligations under contractual agreements and other ongoing payments. This calculation can provide a good picture of the current value of business assets, but it will not necessarily address the business’s potential for growth in the future.

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Financial disclosure is a crucial component of any divorce case. Although we like to think of marriage as a romantic partnership – It is just as much a financial partnership. When you get married, you and your spouse entangle your finances. Undoing this financial fusion during divorce can be difficult under the best of circumstances and extremely challenging when a spouse is dishonest. Whether you are only thinking about divorce, or you have already filed your petition for dissolution of marriage, signs of financial deception should be taken seriously. A spouse who lies about his or her income, assets, and debts can trick you into a divorce settlement that is grossly unfair.

You Are Kept in the Dark About Finances

Some married spouses pay bills and make other financial decisions as a team. Others delegate financial decision-making to one spouse while the other spouse handles separate responsibilities. If your spouse is suddenly reluctant to discuss finances with you or gets angry when you mention financial concerns, this may be a red flag. Rerouting mail, hiding financial documents, and deleting computer files or financial software like TurboTax and QuickBooks may all be signs that your spouse is hiding the truth.

Your Spouse is Making Unusual Financial Transactions

One of the most common ways that spouses hide assets during divorce is by transferring assets. Your spouse may loan money to a friend or make large withdrawals from the checking account. He or she may buy expensive art or other hard-to-value items with the intention of undervaluing the asset during divorce and selling it for case later on. Keep a close eye on your bank account balances and other financial accounts for unusual activity.

Whether you are only contemplating the possibility of divorce or you are certain your marriage is beyond saving, you probably have questions about the divorce process. You may wonder what the divorce process entails or what steps are needed to end the marriage. You may also have conflicting feelings about whether or not to hire a divorce lawyer. Hiring a lawyer is not required to get divorced in Illinois. However, there are significant benefits associated with hiring an attorney during your divorce.   

Your Lawyer Can Help You Explore Your Options

There is no one-size-fits-all divorce, and each case is unique. Many people are surprised to learn just how complicated it is to divorce, personally, legally, and financially. It is typically much easier to get married than it is to undo a marriage. Understandably, the divorce process can be overwhelming, and many divorcing spouses do not know where to begin. Your lawyer can help you explore options like mediation and discuss whether these options are feasible given your situation.

An Attorney Will Advocate On Your Behalf

Working with a skilled divorce lawyer is crucial when you are engaged in a high-conflict divorce or a divorce involving a spouse who refuses to cooperate. Your lawyer’s job is to advocate on your behalf and ensure that your rights are protected. Without a knowledgeable attorney, you may agree to divorce terms that unfairly benefit your spouse and leave you with less than you deserve. It is especially important to work with a skilled attorney if you suspect that your spouse will hide assets or otherwise try to manipulate the outcome of the divorce.

Any parent can confirm the fact that having children can get very expensive. Childcare, tuition and other school expenses, and extracurricular fees are just some of the child-related costs parents may encounter.

Many divorced and unmarried parents receive financial assistance from the other parent in the form of child support payments. However, some parents may experience financial difficulties that leave them unable to pay child support. If you or your child’s other parent are currently unemployed or facing another financial hardship, you may wonder how this can influence child support payments. Read on to learn how Illinois courts handle child support when a parent is unemployed and what you should do if you need to modify or enforce your current child support order.

Does a Parent Have to Pay Child Support if They are Unemployed?

A statutory formula determines the amount that a parent pays in child support in Illinois. Both parent’s net incomes are taken into account so that the payment amount is appropriate and reasonably affordable. You  may ask, “If a parent has no income, does that mean that he or she is absolved of his or her child support obligation?” The short answer is no. Unemployment does not automatically terminate or decrease a parent’s child support obligation. However, the parent may be able to reduce his or her child support obligation by successfully petitioning the court for a child support order modification.

When it comes to co-parenting, it is best to be as prepared as possible. This is one reason Illinois requires divorcing parents to submit a parenting plan to the court that describes the important details of their co-parenting agreement. If you are a parent who is thinking about divorce, it is important to understand what Illinois expects from parents during the divorce process, including what you will need to address in your parenting plan. You and your soon-to-be ex can agree on the terms of the parenting plan and submit the plan jointly, or submit separate parenting plans to the court for consideration.

The Allocation of Parental Responsibilities and Parenting Time

Illinois does not use the terms “child custody” and “visitation” to describe parenting duties anymore. Instead, child custody is broken down into two main components:

Parental responsibilities – Parental responsibilities refer to the parents’ decision-making authority. Parents will need to decide how major decisions about the child’s upbringing will be handled. Will both parents make decisions about the child’s education, or will one parent have the final say? What about the child’s health and religious upbringing?

There is no doubt that divorce can affect nearly every aspect of a person’s life. However, the financial implications of divorce are often some of the most difficult consequences to deal with. The financial impact of a divorce is especially apparent when spouses have substantially different incomes. Spouses who chose to be a homemaker or stay-at-home parent may find that they lack the employment history and job skills needed to find suitable employment after divorce. Spouses who are disabled or otherwise unable to work may also be at a great financial disadvantage. There could also be a significant income disparity if both spouses work but one spouse makes much more money than the other spouse.

If you are getting divorced and you make significantly less or significantly more than your spouse, it is important to understand how this income inequality can impact the process and outcome.

Property Division Issues and Complex Assets

Many people with a higher-than-average income choose to invest their earnings into stocks, bonds, CDs, real estate, businesses, and other investments. Properly valuing and dividing complex assets like these in a divorce typically requires assistance from a skilled financial professional, in addition to legal guidance from a divorce lawyer. In Illinois, marital property includes property that was acquired during the marriage. Investments a spouse made before the marriage may be his or hers alone; however, the increase in value of the asset may be marital property to which both spouses are entitled.

If you are a parent who is thinking about getting divorced, you may understandably be concerned about how the split will affect your kids. Divorce is difficult for everyone regardless of the time of year. However, dealing with a divorce during the back-to-school period can be even more stressful. As with many aspects of a divorce, planning how to handle parenting and school issues in advance can help make the process easier for everyone.

Plan How You Will Handle Child Custody and Child-Related Expenses

As part of your Illinois divorce, you will be asked to submit a parenting plan to the court which explains how you and the other parent will share parenting time and parenting duties. Even if you have not officially filed for divorce, you can still create a written plan detailing when your children will stay with each parent to ensure that you and the other parent are on the same page. Plan in advance which parent will have the child on what days and how parents will handle school events like parent-teacher conferences and back-to-school nights. Consistency and structure will help your child cope with the divorce. Make sure to also address how the parents will pay for school supplies, extracurricular fees, and other school-related expenses during the split.

Consider Telling Your Child’s Teacher About the Divorce

Of course, your marriage is no one’s business but your own. However, letting your child’s teacher know that you will soon be divorced may help in several ways. First, it lets the teacher know that he or she should communicate with both parents regarding school reports, disciplinary actions, or other child-related concerns instead of assuming that one parent will share the information with the other parent. Secondly, it gives the teacher the opportunity to provide emotional support to your child if he or she does get upset or acts out at school because of the divorce.

A divorce case can take several months or even years to resolve fully, especially when the couple disagrees on property division, child custody, and other divorce issues. Understandably, many divorcing couples struggle to live under the same roof during the divorce process. If you are getting divorced, you may wonder, “Who gets to stay in the marital home during a divorce?” The answer varies from case to case. However, there are two legal avenues available to divorcing spouses in Illinois that may allow them to obtain exclusive possession of the marital home.

Exclusive Possession of the Marital Home During an Illinois Divorce

As with all property division issues, divorcing spouses have the option of reaching their own agreement regarding possession of the home after divorce. Some divorcing spouses are able to negotiate an arrangement through their lawyers or during mediation. Others end up in divorce litigation. Spouses may also disagree about who should get to remain in the marital home while negotiations or litigation are ongoing.

If you wish to live in the marital home during the divorce and force your spouse to move out, you have two main legal options for doing so.

One of the most consequential aspects of the divorce process is the division of property and debts. In complex divorce cases involving high-value or difficult-to-value assets, property division is also often one of the most complicated parts of the divorce. Cryptocurrency such as Bitcoin, Ethereum, Tether, Binance Coin, or Dogecoin must be addressed along with all other forms of property. However, valuing cryptocurrency and understanding how it should be divided is often a major challenge. If you or your spouse own Bitcoin or other forms of cryptocurrency, make sure you understand how this unique asset will be handled during your divorce.

Virtual Currency in an Illinois Divorce

Cryptocurrency is difficult to understand because it is completely unlike traditional forms of currency. This digital asset also exists outside of the government’s control. Furthermore, the value of cryptocurrency fluctuates dramatically.

In addition to valuing the cryptocurrency, the spouses will need to determine who has a right to a portion of the cryptocurrency’s value. Only marital property, or property acquired during the marriage, is subject to division. Determining how much of the cryptocurrency’s value is marital property and how much is non-marital property can be a massive hurdle.

Divorce can be very difficult for a number of reasons. It can often become fairly contentious when a former couple must battle for custody of their children, but what about their pets? Although laws tend to look at pets as a form of property, many people consider their pets to be valued and loved members of the family. Under the Illinois Marriage and Dissolution of Marriage Act (IMDMA), the placement of family pets or companion animals depends upon a few different factors.

Is the Pet a Marital Asset?

The placement of the family pet is dependent upon Section 5/503(n) of the IMDMA. This provision of the law explains that if the court finds the pet to be considered a marital asset, it will allocate ownership of and responsibility for the companion animal. This means that one spouse could receive sole ownership of the pet, or both parties could be awarded joint ownership. In making this decision, the court is now obligated to examine the well-being of the animal.

When is a Pet Considered a Marital Asset in Illinois?

A marital asset is usually any property that is acquired after a couple is married, so if the spouses adopted a pet while they were married, it will likely be a factor in the divorce. However, a pet could be considered non-marital property if it was gifted or left as an inheritance specifically to one spouse, or if a prenuptial or postnuptial agreement states that the pet belongs to one spouse alone. If the pet is not considered to be a marital asset, then whoever is the legal owner of it will likely keep it as non-marital property in the divorce. A service animal is also considered to belong to the spouse who benefits from its services.

If you are a parent who is getting divorced in Illinois and you wish to share custody of your children, you will be asked to create a parenting plan. The parenting plan or parenting agreement is a detailed description of how the parents will share parenting time and parental responsibilities. The parenting plan is not merely a formality. A carefully considered and well-planned parenting agreement can reduce co-parenting conflicts, help the parents avoid future legal disputes, and benefit the child’s adjustment and overall well-being. One provision you may want to include in your parenting plan is the “right of first refusal.”

Understanding Parenting Time Schedules

A key element of your parenting plan will be a schedule describing the allocation of parenting time. Formerly called visitation, parenting time refers to the time the child spends with each parent. You may decide that the child will live with one parent Monday through Wednesday and the other parent Thursday through Sunday, or that the child will spend time with a parent every other weekend. You may even assign parenting time to one parent during the school year and the other parent during the summer months. Parents have the freedom to design whatever parenting time schedule meets their needs, as long as it is in the child’s best interests. However, it is also important to consider what happens when a parent cannot fulfill his or her parenting time obligation.

How the Right of First Refusal Affects Parenting Time

Consider the following scenario: A mother is responsible for watching the children on weekdays. However, a work trip requires her to be out of town Monday through Wednesday. Does the mother hire a sitter or ask the father to watch the children on those days? The right of first refusal is intended to address just such a situation.

Getting divorced is always a challenging life event to go through. When spouses own a family business, ending the marriage becomes even more complicated. If you or your spouse owns a business and you are ready to end your marriage, you may be overwhelmed with questions. Will we have to sell the business? Will we both receive an equal share of the business assets? How should we accurately value the business? Is it possible to continue running the business jointly after the divorce?

The answers to these questions will depend on your unique situation as well as your plans for the future. However, one thing is certain: addressing a family business during divorce is complex. You will need to work with a skilled lawyer who has sufficient experience successfully handling business owner concerns during divorce.

Most Family Businesses Are Considered Marital Property

In an Illinois divorce, property is divided into two categories: marital and non-marital assets. Both spouses have a right to an equitable, or fair, portion of marital assets. If your business was established or purchased during your marriage, it is almost certainly considered a marital asset. Even if a spouse purchased the business before getting married, the business can become marital property if joint funds were used in the business or if the non-owning spouse made financial or non-financial contributions to the business.