Chicago lawyer, Russell Knight, has opened up a solo general practice. He is both a divorce lawyer and criminal defense lawyer. In his blog Russell recommends doing a criminal background check on your spouse at the beginning of a divorce:
By presenting this [evidence of a criminal record] to the judge, an attorney is able to wake the judge out of his or her “he-said-she-said stupor” and begin portraying their client as the good guy and the other party as the bad guy.
Generally speaking, criminal convictions should not play a big role in a divorce. Divorces are simply about dividing the marital property and establishing how two parties will raise their children. However, depending on the type of crime committed, your spouse’s criminal record could be useful in a divorce. For example, a conviction for tax fraud might show that your spouse has a history of hiding money. This information, of course, could help you establish the groundwork necessary for convincing a judge that your spouse is hiding assets.
Time.com has a an great article titled Will the Market Kill Your Marriage? that discusses why economic recessions increase divorce rates. Possible theories include:
- Lack of money exposes fundamental flaws in the marriage,
- Couples who had fundamental differences about money now have irreconcilable differences about it, and
- Financial worries cause stress, stress causes depression, and depression causes divorce.
The most interesting quote of the article:
A study that correlated Playboy centerfolds with market conditions found that men like fuller-figured women more in lean times than in boom times. The APA study showed that when stressed, women liked to eat. Bingo!
For those who don’t want to overeat to save their marriages, the article offers this suggestion:
A lot of counselors suggest sitting with your spouse and putting your fears on the table. If partner A does not know the full lay of the dire financial land, partner B should map it out while partner A makes a robust attempt not to scream. Then figure out how to address your liquidity issues as a team.
Although the advice above is meant for people who are trying to save their marriages, I would extend it to those who are facing divorce. In my family law practice here in Chicago, I have seen that those couples who face their financial problems together – as a team – are the ones who are able to reach the best outcomes.
Via: Maryland Divorce Lawyer: Coping with the Recession
When divorcing it is important to keep in mind the tax consequences of the division of property, child support and other financial matters.
Minnesota Divorce Lawyer Jason Brown has published an excellent article containing eight tax tips to keep in mind as you move forward with your divorce. Although the article was not written by an Illinois lawyer, it applies to Chicago divorces because it deals with federal tax law:
- Child Support. Child support is not income to the recipient and is not deductible for the payer. Keep this in mind if your spouse is seeking alimony. Child support payments that they receive are not taxable and, as a result, increase their net income each month dollar for dollar. As a result, the “need” of your spouse will be diminished and you may be able to argue that their imputed gross income exceeds their gross pay coupled with untaxed child support.
- Alimony. Alimony is income to the recipient and is deductible for the payer. High income earners can reduce their taxable income by paying alimony. If your spouse’s tax bracket is low, the government winds up picking up the tab for a good share of the alimony obligation.
- Sale of Homestead. The sale of the marital homestead usually does not involve a taxable event. Capital gains (up to $500,000) from the sale of your marital homestead are not taxable if you’ve lived there for two of the last five years. Nor is a transfer of title to the residence, allowing your spouse to keep some or all of the equity. Many couples opt to forego alimony payments in, instead, pay a disproportionate property settlement to their spouse. In other words, they “buy off” alimony by giving a larger share of home sale proceeds, or equity, to their spouse. The result? No tax implications for either. Ideal for alimony recipients in a high tax bracket.
- Filing Status. The status of your marriage on December 31 of the relevant year determines whether you file as single or married. If you are divorced by that date, you file as single for the entire year. If your case appears to be coming to a close near the end of the year, best to speak with a tax preparer about the consequence of holding up at bit or expediting matters. We find that courts are usually willing to facilitate bringing matters to a close by the end of the year if tax implications in doing so are substantial.
- Dependents. While the law provides that the custodial parent is entitled to claim the relevant dependency exemptions, most couples agree to share them. Offering a non-custodial parent the right to claim the dependency exemption under the condition that their child support is current at the end of the relevant tax year provides them with incentive to keep current with payments.
- Child Care Credit. Custodial parents who incur work-related child care costs can deduct up to 30% of the cost. It is for that reason that the child support guidelines usually require a custodial parent to assume responsibility for a greater share of daycare expense.
- Liabilities and Refunds. Taxes owed, or refunds received, are usually treated as “marital” and are, therefore, split equally among the parties. In the heat of the moment, some spouses will intercept a tax refund and cash it without the other’s knowledge. All funds must be accounted for and it is likely that if they do so their share of the final property settlement will be reduced proportionately. Because income is “marital,” a tax liability is a shared responsibility.
- Attorney Fees. Any fees paid to a lawyer for tax advice are deductible. Ask your attorney for to break out all billable time devoted to tax issues and you can save big.
Chicago lawyer, Russell Knight, has opened up a solo general practice. He is both a divorce lawyer and criminal defense lawyer. In his blog Russell recommends doing a criminal background check on your spouse at the beginning of a divorce:
