Posted on December 00, 0000 in Finances & Divorce

Everyone knows that divorces are expensive, but they cost a whole lot more than just money -- they also cost you precious time, energy and emotional stress. Money is one of the biggest stressors in both marriage and divorce, which is why divorces can be so tense and combative. There are many complicated decisions you must make during a divorce and a good amount of them revolve around your finances. The decisions that you make about your finances when you get divorced are decisions that will affect you for a good portion of your life. Try to avoid making these four common financial mistakes during your divorce:

Not Having All of You and Your Spouse’s Financial Documents on Hand

Preparation is key when it comes to divorce. You will want to make sure that you have all of you and your spouse’s financial documents before you begin to negotiate who gets what. Make sure you have bank statements, credit card statements, mortgage and loan information and any other relevant financial documents on hand. If you think that your spouse is hiding assets from you, let your lawyer know. They will be able to help you uncover any hidden assets.

Continue Reading ››

 Posted on December 00, 0000 in Finances & Divorce

Most people have a long list of questions when they make the decision to get a divorce. By far, one of the most common questions people have before they begin the divorce process is, “How much will my divorce cost?” The answer to that question is not a simple one -- there are so many factors that can affect the price tag on your divorce. Some sources report that the cost of divorce can be as low as a couple of hundred dollars, while other sources state a divorce will cost more along the lines of tens of thousands of dollars. Here are a couple of different factors that can affect the cost of your divorce: The Type of Divorce You Choose Not surprisingly, the type of divorce you choose can determine how much you ultimately end up paying for your divorce. A do-it-yourself divorce can range from $600 to $1,800, depending on the type of service you use and where you live. Typically, the only costs associated with a DIY divorce are those that come from the service you use and the filing fees. A litigated divorce can range in cost from $15,000 for a straightforward divorce to $200,000 for a divorce that ends up going to trial. Your Divorce Attorney’s Hourly Rate and Retainer Fee If you choose to have an attorney help you with your divorce, costs between lawyers may differ. The average attorney’s fees can range from $200 to $500 per hour and most attorneys also require you to pay for a retainer before you begin. The average retainer fee ranges from $3,500 to $10,000, depending on the complexity of your case. Court Costs and Filing Fees For the most part, in Illinois, filing fees tend not to differ very much between counties. To file for a dissolution of marriage in DuPage County, it costs $290, though that is not the only filing fee or cost you will have to deal with. Whether or Not You and Your Spouse are Willing to Work Together Couples who are more argumentative tend to pay more for their divorces. This is rather obvious because you will be paying more money if you are spending more time coming to an agreement on issues. For example, a couple who has to have five to six negotiation sessions will be paying their lawyer more than a couple who settles the same issue in only two sessions.

Continue Reading ››

 Posted on December 00, 0000 in Finances & Divorce

Estate planning is not something that the typical American tends to think about very often. This is especially true if you are going through a big change in your life, such as divorce. During a divorce, you have so many things constantly on your mind, estate planning is probably at the very bottom of your list. While updating your estate planning documents does not have to be your number one priority, it should definitely still be on your list somewhere. Here are a few estate planning documents that you should have in the back of your mind to update after your divorce is finalized: Wills If you are filing for a divorce, it is best that you draft an entirely different will, if possible -- this is the easiest way to ensure your estate is not given to your ex-spouse upon your death. In the state of Illinois, a will can be revoked by physically destroying it or by having a new will drawn up stating that the prior will has been revoked. If you do not change your will, but you finalize your divorce, Illinois treats the will as if your spouse died before you did. This means you do not necessarily have to change your will, but it is a good idea to make changes as necessary. Trusts Under Illinois law, trusts are handled similarly to wills when it comes to divorce. If you named your spouse in a revocable trust or living trust, the sections containing your spouse will become invalid upon the finalization of your divorce. If you have an irrevocable trust, however, the contents of the trust will not change and are unable to be modified. Power of Attorney Finally, you will want to make sure you revoke your power of attorney as soon as possible if you named your spouse to act in your place if you are unable to do so. If you do not change your power of attorney and become unable to manage your affairs, your spouse may gain access to your assets. You will also want to be sure that you remove your spouse from your healthcare proxy if you get a divorce. Not doing so can allow your spouse to make healthcare-related decisions for you if you are unable to do so.

Continue Reading ››

 Posted on December 00, 0000 in Finances & Divorce

Getting a divorce turns your entire life upside down. The asset division process can prove to be especially cumbersome for some couples, as it requires you to take every single asset and debt into consideration when making decisions. Most couples argue over the house, bank accounts, and vehicles. While these high-value assets are important, it is also important not to overlook one of your most important assets -- retirement funds. It is easy to forget about retirement when it is 15 or 20 years away, but planning for it now can save you a big headache in the future. When it comes to retirement plans, one of the most important tools in your toolbox is a QDRO, which is a commonly used acronym for a qualified domestic relations order. QDROs can be extremely beneficial when divvying up retirement plans during a divorce and can take some of the uncertainty out of your future. What Is a QDRO? In the state of Illinois, all pension benefits, including individual retirement accounts (IRA’s) and defined contribution plans and accounts, are presumed to be marital property and must be divided in “just proportions.” This is where a QDRO comes in. A QDRO is a legal document that designates an alternate payee’s right to receive all or a portion of the benefits held in certain types of retirement accounts. What Is Included in a QDRO?

Continue Reading ››

 Posted on December 00, 0000 in Divorce

The only way for two spouses to end their marriage is by getting a divorce. But, what many people do not realize is that common law marriages also require a divorce before either spouse is free to marry someone else. How do you know if you have a common law marriage?

Illinois and Common Law Marriage

The state of Illinois does not recognize common law marriage. The only way to get married in Illinois is to obtain a marriage license and have a legal ceremony. Common law marriage, however, is recognized in many other states.

In states with common law marriage, a couple is considered to be legally married when they hold themselves out to be married and have lived together for a certain amount of time. Each state is permitted to create its own requirements regarding exactly what constitutes such a marriage. Some, like Illinois, have no criteria under which a common law marriage is assumed to exist.

Continue Reading ››

 Posted on December 00, 0000 in Divorce

When you and your spouse have decided that your marriage is over and that divorce is the best option, you may be tempted to handle the situation on your own. You are both reasonably intelligent people and the process is pretty straightforward, right?  While you and your spouse may be intelligent, such an assumption is flawed for several reasons. First, the laws surrounding divorce and related concerns are not always as clear as they may seem, and, more importantly, it is impossible to predict all of the potential obstacles and roadblocks that may arise before the divorce is finalized.

By hiring a divorce attorney, even it is only to review your pre-negotiated agreement, you can experience a number of possible benefits. Consider:

• Ongoing training: Most family law attorneys take advantage of continuing education programs and seminars to keep abreast of the latest updates to and interpretations of the law. For example, major changes to divorce and matrimonial law were passed by the Illinois legislature this year, but a quick Google search cannot explain to you how courts will apply the new laws;

Continue Reading ››

 Posted on December 00, 0000 in Divorce

Have you ever consulted with an accountant, analyst, or financial planner? For many people, working with a financial professional is something that only the wealthy need to worry about. Of course, there are those who would suggest that it is through working with financial advisors that many are able to become wealthy, but that is a topic for another day. Regardless of your income or tax bracket, however, divorce can be one of the most economically complex processes that you will ever be forced to navigate, and to get through it, the help of a financial professional may prove to be absolutely necessary.

Division of Assets

Allocating marital property is among the most challenging concerns for a large number of divorcing couples. It can be nearly impossible to determine what is fair and equitable if both spouses do not have a clear of understanding of the value of each part of the estate. A real estate appraiser, for example, can provide an accurate valuation of your home, while a retirement professional can help you analyze the current and expected value of pensions, 401(k) plans, and other investments. These considerations must be made before you and your spouse can split your assets, and doing so can allow you both to feel that you have been treated fairly.

Continue Reading ››

 Posted on December 00, 0000 in Divorce

While marriage and divorce are very personal decisions, social trends regarding the two are often tied to a large number of other factors. While an individual couple may be taking into account their own circumstances, the economic strength of the country as a whole may play a fairly significant role as well. In fact, according to recent studies, since the 2008 recession in the United States, the overall divorce rate has dropped by about 3 percent.

Marriage Rates Slightly Up Too

Reports from the Centers for Disease Control and Prevention (CDC) indicate that the divorce rate fell again slightly in 2014 from 3.3 divorces per 1,000 total population in 2013 to 3.2 per 1,000. While the divorce rate spiked slightly between 2009 and 2011, it has since been steadily falling from its 2008 rate of 3.5 per 1,000 people.

For the first time in 15 years, however, 2014 saw a rise in the marriage rate as well, bumping up from 2013’s 6.8 marriages per 1,000 people to 6.9. The increase, while not particularly large, represents a reversing of a long-term downward trend.

Continue Reading ››

 Posted on December 00, 0000 in Divorce

You probably know at least one person, if not many people, who emerged from a divorce and jumped almost directly into a new romantic relationship, often before the ink even dried on their paperwork. Depending on the situation of your marriage and divorce, you may find the idea of new romantic partner extremely appealing. However, you may want to take a step back and consider if you are truly ready for a new commitment so soon.

Divorce and Grief

Mental health experts regularly suggest that the psychological and emotional effects of a divorce are very similar to those associated with the death of loved one. As with death, grieving the end of your marriage is a process and not an event that is over after a specified amount of time. Every person grieves differently, and there is not right or wrong way to move through it. This means that while some people may be ready to date again right way, others may not be emotionally prepared for months or even years.

Continue Reading ››

 Posted on December 00, 0000 in Divorce

Any time researchers try to find trends in the divorce rate, there is always a certain “which comes first” debate that takes place. For example, when looking at professions or occupations that are more prone to divorce, the question must be asked, “Does this profession increase the likelihood of divorce or is the type of person more prone to divorce, for whatever reason, more inclined to work in this field?” Whatever the case may be, there is little question that divorce is more common among those who work in particular industries or jobs, and many such occupations have very similar stresses and pressures.

Police, Firefighters, and Military Personnel

While it is difficult to imagine modern life without individuals who have committed themselves to public safety and national defense, these jobs are not without their downsides. Police officers and fire fighters often work long shifts, with a great deal of stress added to the equation. Servicemen and women spend months at a time away from their spouses and families, frequently leading to communication issues and deteriorating relationships

Continue Reading ››