Vernon Hills Illinois Family Law Blog

The dawn of the new year in 2019 will also mean the introduction of new tax rules that could significantly affect Illinois couples planning on divorce. The end of 2018 will also be the end of alimony tax rules that have remained settled for decades; while the change will not affect couples who have already finalized their divorce, it will apply to everyone who ends their marriage moving forward. Many people are concerned about how the changing treatment of alimony could affect the potential of a divorce settlement.

Under the current rules, spousal support payments are tax-deductible for the payer. In addition, the recipient pays taxes on the alimony at his or her tax bracket, usually representing a lower rate. This leads to significant tax savings for a number of high-income couples going through a divorce. However, this will change; under the 2019 rules, spousal support payments will no longer be deductible for the payer, and the recipient will receive the income tax-free. Many fear that this will make divorce settlements far more difficult to resolve, as a significant incentive for generous alimony has been eliminated.

When parents in Illinois get a divorce, they might know that the ideal is a cooperative, communicative co-parenting relationship. However, despite these good intentions, in some cases, there may simply be too much conflict for this to be successful. Since research has shown that seeing conflict between their parents is usually the most damaging element of divorce for children, parents may still be able to provide a healthy environment of sharing custody and visitation by avoiding direct contact.

This is sometimes known as parallel parenting, and it will require extensive planning in order to make sure that parents do not need to check in with one another regularly. They will still need a way to share information, so they might agree to share calendars or only communicate using email. In contrast, a successful co-parenting relationship usually includes a great deal of communication.

Many people in Illinois who get divorced must decide if they want to keep the marital home. One of the first things to consider is whether or not the home has much equity. If a home was recently purchased, there may be little or no equity. Usually, the spouse who keeps the home buys the other one out by paying them a one-half equity share.

Another thing to consider is whether the home will be likely to need repairs in the next few years. Many people who can barely afford to pay the mortgage on one income will find that unexpected home repairs are too costly. Having a home inspection before the divorced is finalized is a good idea.

Financial issues are one of the main reasons people in Illinois might experience marital discord. A survey by SunTrust Bank found that more than one-third of respondents said money is their main source of conflict in their relationship.

People with higher credit scores and more financial stability are more likely to stay in long-term relationships. Couples who have a large disparity in their credit scores are more vulnerable to divorce than those without this disparity. However, wealth does not necessarily mean that a marriage is more stable. According to one attorney, some wealthy couples may have both a higher income and higher expenditures with very little in savings. In addition, one person may have a high income while the other has a much lower one or might not work outside the home at all. This income discrepancy can create stress in the marriage. Furthermore, the job of a high-earning spouse might require long work hours and travel, and this can strain a relationship. Different types of problems arise when people are in two-income families. Often, men still handle most financial matters, and this could create problems.