Posted on September 15, 2017 in Divorce and Finances

Spouses share their debts during a marriage. When they decide to divorce, those debts are split between the two sides, with each spouse taking responsibility for paying a portion of the debt. However, creditors hold divorced spouses equally liable for their marital debts, regardless of the terms of the divorce settlement. If one divorced spouse fails to pay his or her share of the debt, the creditor will go after both spouses. A couple facing overwhelming debt can file for bankruptcy to either discharge the debt or create a repayment plan. Bankruptcy may allow a divorcing couple to reduce or eliminate the shared debt that will tie them together after their marriage has ended. Couples should consider filing for bankruptcy before they divorce.

Types of Bankruptcy

People most commonly file for either chapter 7 or chapter 13 bankruptcy. The differences between the two may determine which type a divorcing couple prefers and when they want to file:

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 Posted on September 06, 2017 in Divorce

When you are starting your divorce, you may take comfort in the belief that you can rely upon your friends to provide emotional support during the process. Unfortunately, your divorce can change your relationship with your friends. Some may try to distance themselves from you by:

• Treating you coldly;
• Declining social invitations; or
• Not inviting you to social events.

You may feel betrayed because these friends have abandoned you when you need them. Before completely writing these people off, you should understand how divorce can affect people’s friendships.

Staying Impartial

Spouses often share friends during their marriage. When someone is the friend of both people in a divorce, he or she is put in an awkward situation:

• If the friend sides with one spouse, he or she may lose the friendship with the other spouse; or
• If the friend tries to maintain a relationship with both spouses, he or she may become a conduit for the spouses’ continuing arguments.

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 Posted on September 04, 2017 in Child Support

In July, Illinois enacted a long-anticipated overhaul of its child support payment law. Whereas the previous system always placed the financial burden on the party with less parenting time, the income shares model more equitably splits the parenting cost between the parties. The court combines the parents’ net monthly incomes and calculates the percentage of the combined incomes that each parent’s individual income accounts for. The court consults a chart that quantifies the expected monthly child-related expenses, based on the number of children and combined incomes. Each parent is responsible for paying for a percentage of the child-related expenses that equals the percentage that his or her income makes up of the combined incomes.

In most cases, the parent who is allocated a majority of the parenting time will still receive child support payments from the other parent. However, the amount will vary more than it did under the previous system, depending on:

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 Posted on August 29, 2017 in Cohabitation

Society has become more accepting of couples who cohabitate without marriage, but laws do not yet treat them equally. Some states, including Illinois, prohibit common law marriages, in which couples act and present themselves as married but never obtain a legal union. While this may limit a couple’s rights when they are together, it also affects them when their relationship ends. Illinois laws state that couples who dissolve their marriages or civil unions are entitled to an equitable division of their shared properties. Because Illinois does not recognize common law marriages, cohabitating couples do not have the same property rights unless they created their own separation agreement.

Legal Precedent

Illinois’ Supreme Court has twice decided that cohabitating couples are not required to equitably divide their properties after their relationships end:

• A 1979 decision on the case of Hewitt v. Hewitt said that a person in an unmarried relationship does not have a legal claim to an equal share of his or her former partner's property. An appeals court later stated that it believed the decision was made to discourage cohabitation and children being born to unmarried couples.

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 Posted on August 24, 2017 in Divorce

Going through a divorce can dominate all aspects of your life, including your job. You may have previously tried to keep your work life separate from your personal life. Your problems from home should not be brought to work, and vice versa. With the exception of the death or illness of a family member, a divorce is the most time-consuming and emotionally draining personal issue you can have. If you have a full-time job with a heavy workload, your divorce is likely to decrease your work productivity.

Effects on Work

Several researchers have tried to measure the monetary cost to employers when employees are going through divorces. The exact number varies by study, but the average company loses at least tens of thousands of dollars each year due to reduced productivity from divorcing employees. There are many ways a divorce can affect you at work:

• Divorce meetings and hearings can interfere with your work schedule;

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 Posted on August 21, 2017 in Children and Divorce

It is almost time for your children to return to school, if they have not already. Though your kids may dread it, you are likely looking forward to a more normal routine. For divorced parents, their parenting time schedule is built around school and school-related activities. With the start of school, they can re-establish a regular schedule of when the children will live with each parent. However, parents who have recently divorced may be unsure of how to handle back-to-school time. It is in the best interest of your children for both of you to remain active in their school lives. In order to do so, you must be willing to cooperate with each other in some situations. There are several ways to help everyone adjust to your new family situation at the start of the school year:

1. Informing the School: With younger children especially, it is important for the school to know when a student’s parents are newly divorced. Divorce may affect your child’s behavior and academic performance. Being aware of the divorce may allow your child's teacher to help.

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 Posted on August 16, 2017 in Divorce and Finances

One challenge in negotiating a financial settlement in a divorce can be trying to figure out your spouse’s true worth, as compared to what he or she claims. Understating your income and assets gives you an unfair advantage when determining the division of marital property, child support payments and spousal maintenance. In particular, people who are self-employed or own a business are capable of artificially deflating their personal worth. Spouses may think they are savvy when they find ways to understate the value of their businesses or themselves. However, the other spouse would see it as dishonest and manipulative. You must be aware of the ways people can take advantage of their self-employment during a divorce.

Manipulating Finances

When people are self-employed or run a business, their personal and professional assets and expenses often mix. As their own boss, they have the ability to:

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 Posted on August 11, 2017 in Children and Divorce

There is not an easy way to tell your children that you are getting a divorce. Younger children may have difficulty understanding what a divorce is and what it means for them. Older children may be angry because they think they know what the divorce means. Either way, your children are likely to be upset about your divorce. As parents, you must be sensitive to their feelings when breaking the news. Handling it in the wrong way can cause your children to become more upset than they need to be.

Honesty

Though it may be difficult, you must be honest with your children about your divorce. Avoiding their questions or lying about the consequences of your divorce may temporarily spare their feelings. However, they will eventually learn the truth and feel betrayed because you lied to them. Children do not need to know every aspect of your divorce but should understand the parts that affect them. You should make it clear to your children that:

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 Posted on August 08, 2017 in Alimony / Maintenance

When negotiating the financial aspects of a divorce settlement, each party must consider how to support him or herself in the present and future. The division of marital properties may have the greatest current value to a spouse, but spousal support payments can help create prolonged financial security. However, parties can waive regular spousal support payments in exchange for a lump sum payment, given as either one payment or in installments. The recipient spouse reaps an immediate monetary reward, but the paying spouse often benefits more. A spouse may ultimately receive more money through continued spousal support payments than from the lump sum payment. Though lump sum spousal support agreements seem short-sighted, the recipient spouse may have a valid reason to seek immediate compensation.

Benefits

Some spouses agree to receiving a lump sum spousal support payment because they are enticed by the big payout. Others are motivated by financial or emotional factors that make sense in their situations:

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 Posted on August 04, 2017 in Child Custody

A recent Illinois Supreme Court case dealt with what consideration the state should have given to a man’s mental disability before seeking to terminate his parental rights. In order to terminate a parent’s rights, the state must independently prove that the parent is unfit and that terminating his or her rights would be in the child’s best interest. In People of the State of Illinois v. J.B., the state petitioned to remove the defendant’s parental rights. The state cited two subsections of Illinois’ Adoption Act that say a parent is unfit if he or she:

• Fails to show interest in or concern for the child; or
• Does not make reasonable progress towards reuniting with the child.

An Illinois juvenile court ruled in favor of the state, but an appellate court overturned that ruling. The appellate court’s majority decision said that:

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