Law Offices of Tedone and Morton, P.C.

Joliet Office

815-666-1285

Plainfield Office

815-733-5350


Joliet divorce attorney for asset divisionDuring the divorce process, spouses will need to make many different decisions about how to handle financial issues. Many of these issues will involve the division of marital property, and spouses may be required to make sacrifices or adjustments as they determine how to ensure that they will have the financial resources needed to support themselves after their divorce is complete. Ownership of a couple’s marital home is one issue that can sometimes be difficult to resolve, especially when both spouses have an emotional connection to the home or when parents want their children to continue living in the same community. By understanding their options, spouses can make decisions that will benefit them moving forward and ensure that they will be able to maintain financial success.

Options When Addressing Real Estate Ownership

In many cases, selling the marital home during the divorce process is the best option for a couple. This will avoid any disputes about who will get to live in the home that a couple once shared, and the profits earned from the sale of the home can be divided between the spouses, providing them with financial resources that will help them establish their own individual living arrangements. However, when selling a home, spouses will want to be aware of any capital gains taxes that may apply, as well as any other issues that may result in financial losses.

If one spouse wishes to continue living in the home, they will usually need to determine how they will be able to “buy out” the other spouse’s share of the home’s equity. The other spouse may receive a larger share of other marital assets, or a monetary payment may be arranged, either as a lump sum or an ongoing payment plan. The home will need to be refinanced with one spouse as the sole borrower, and the other spouse will need to be removed from the home’s title and deed. While owning the home may be preferable for one spouse, they will need to be sure they will be able to afford ongoing mortgage payments, as well as other expenses, including utilities, maintenance, insurance, and property taxes.

In some cases, spouses may agree to co-own a home for a certain period of time after getting divorced. This option may be preferred if a couple wishes to ensure that their children can continue living in the home until they graduate from high school. Parents may also use a “birdnesting” arrangement in which each parent will stay in the home with their children during their parenting time. When co-owning a home, spouses should be sure to understand who is responsible for paying certain expenses, who will be able to claim mortgage interest tax deductions, and when the home will eventually be sold.

Contact Our Joliet Marital Property Division Lawyers

At the Law Offices of Tedone & Morton, P.C., we can advise you of your rights and options regarding your marital home during your divorce. We will provide you with representation during the divorce process, working with you to negotiate a settlement that will provide you with financial security as you move forward with your life. Contact our Will County divorce attorneys by calling 815-666-1285 to schedule a free consultation. 

Sources:

https://www.zillow.com/sellers-guide/divorce-selling-house/

https://money.usnews.com/money/personal-finance/family-finance/articles/2017-10-11/divorcing-should-you-divorce-your-home-too

 

https://www.kiplinger.com/article/retirement/t065-c032-s014-keeping-the-house-post-divorce-now-more-affordable.html

IL divorce lawyerDuring your divorce, determining how you and your spouse will divide the property you own is going to be a major concern. This is especially true if you are a business owner. Your business not only represents the investment of time and resources needed to make sure it can be successful, but it may also be your main source of income. To avoid losing a business you have put so much of yourself into and being required to find employment elsewhere, you will want to determine how you can maintain ownership of your business and continue to operate it successfully after your divorce.

Business Valuation and Asset Division

One of the most important things you will need to do during the divorce process is to establish the full value of your business assets. With an understanding of how much your business is worth, you can calculate the total value of your marital estate, which includes all the assets and debts you and your spouse have acquired while you were married.

There are several methods that may be used to determine the value of your business, and by working with accountants and financial experts, you can decide the most appropriate approach. In some cases, you may look at the value of all the assets owned by the business, including inventory, equipment, supplies, accounts receivable, and intellectual property, and subtract the business’s liabilities. In other cases, it may be more appropriate to consider the income currently being earned by the business and the projected growth over the next several years, or you may look at the purchase price of similar businesses that have been sold in your area. By considering all applicable factors, you can establish the monetary value of your business and ensure that it can be considered properly when dividing your marital property.

Some divorcing couples who own businesses choose to sell their business since this makes it easier to divide their marital assets. However, this will not be an option if you wish to continue owning and operating your business. If you want to retain full ownership, you will need to divide the marital estate in a way that allows your spouse to retain assets of a similar value, such as your marital home or other valuable items. If this is not feasible, or if the value of the business is much higher than the value of your other marital assets, you may be able to make arrangements in which you will buy out your spouse’s share of the business and pay this amount off over time, along with interest.

Another option may be for you and your spouse to continue co-owning and co-managing the business as ex-spouses and business partners. If the two of you have already been working together to operate the business, and you will be able to set aside your differences about your divorce and work together professionally, this may be the best approach to take. However, if you do not already have a partnership agreement, you will want to create one, since this will define your individual responsibilities in different areas of your business. Your partnership agreement can also include details about the procedures that will be followed if either of you plans to leave the business in the future or wishes to buy out the other’s share of the business.

Contact Our Will County Business Valuation Attorneys

If you are a business owner who is going through a divorce, the Law Offices of Tedone & Morton, P.C. can advise you on the best approach to take that will protect your financial interests. We can also assist with the creation of a prenuptial or postnuptial agreement that will decide how ownership of your business will be handled in the case of divorce. Contact our Joliet asset division lawyers at 815-666-1285 to set up a complimentary consultation.

Sources:

https://www.ilga.gov/legislation/ilcs/documents/075000050k503.htm

http://www.smbceo.com/2019/11/19/how-to-value-a-small-business-for-divorce/

https://www.inc.com/guides/2010/05/protecting-your-business-from-divorce.html

IL divorce lawyerMarried couples who choose to get a divorce will need to address many different legal and financial issues related to the income they earn and the property they own. Determining how to divide marital property can often be a complex process, especially for couples who own significant assets. In addition to dividing physical property and financial accounts, couples may also need to address retirement savings and pension benefits. When dividing certain types of retirement assets, couples will want to use a Qualified Domestic Relations Order (QDRO).

What Is a QDRO?

A Qualified Domestic Relations Order is a court order that instructs the administrator of a retirement plan to make payments to someone other than the plan holder. QDROs can be used to divide the funds in certain types of retirement savings accounts and to allocate pension payments.

A QDRO is usually used with retirement savings plans that are covered by the Employee Retirement Income Security Act (ERISA), such as a 401(k) account. If a couple agrees in their divorce settlement that the funds in a 401(k) that is in one spouse’s name will be divided equally between the spouses, a QDRO can be used to withdraw half of the funds and pay them to the other spouse. When using a QDRO, penalties for withdrawing funds before reaching retirement age will not apply, and taxes will not need to be paid, as long as the payee deposits or rolls over the funds into a retirement account in their name. For retirement accounts such as IRAs or SEPs, a QDRO will not be needed, and funds can be allocated using a “transfer incident to divorce.”

QDROs can also be used to divide pension benefits, and for pension plans operated by the State of Illinois, spouses will need to use a special type of QDRO known as a Qualified Illinois Domestic Relations Order (QILDRO). Unlike retirement accounts, which have a known balance that can be divided between spouses, the benefits a person will receive through a pension may not be known at the time of a couple’s divorce. To ensure that these benefits can be divided fairly, a QDRO or QILDRO may state that a certain percentage of the benefits will be paid to the alternate payee (the plan holder’s ex-spouse) once the person retires and begins receiving pension payments.

Contact a Plainfield QDRO Attorney

Retirement savings and benefits are just one of many issues that you may need to address during your divorce. Making the right decisions during the divorce process can ensure that you will be protected financially, providing you with the resources you need to succeed in the years to come. At the Law Offices of Tedone & Morton, P.C., we can advise you of your rights, help you understand the legal issues you will need to address and advocate for your interests throughout the divorce process. Contact our Will County property division lawyers by calling 815-666-1285 or 815-733-5350 to schedule your free consultation.

 

Sources:

https://www.ilga.gov/legislation/ilcs/fulltext.asp?DocName=075000050K503

https://www.ilga.gov/legislation/ilcs/fulltext.asp?DocName=004000050K1-119

https://www.thebalance.com/how-retirement-plan-assets-are-divided-in-a-divorce-1289260

IL divorce lawyerWhen a married couple joins their lives, they also join their finances. If a married couple divorces, they must divide property such as bank account balances, real estate, and business earnings. They will also divide liabilities such as credit card debt. Then the division of marital property and debt can be quite complicated – personally and legally. This is especially true if a spouse spent money on an extramarital affair. Depending on when and how money was spent, the spouse who was cheated on may be entitled to a larger share of marital property in a divorce.

Dissipation of Assets During an Affair

Illinois State does not recognize any fault-based grounds for divorce. Typically, the reason that a marriage is ending has little impact on the outcome of the divorce. However, this is not true if a spouse spent a considerable amount of money to finance an extramarital affair.

“Dissipation of assets” occurs when a spouse “dissipates” or wastes property at the end of a marriage. Wasting assets has been specifically defined as using assets for a purpose not related to the marriage in a way that only benefits one of the spouses. The assets must have been wasted while the marriage was experiencing an “irretrievable breakdown” in order to count as dissipation. Case law has established that a marriage is experiencing an irretrievable breakdown when the couple is no longer trying to work out their differences and save the marriage.

Spending That is Typically Classified as Dissipation

Originally, dissipation of assets only referred to the misuse or waste of marital assets. Marital assets include the assets that are jointly held by both spouses in the marital estate. However, the law has since been amended to include non-marital assets as well. Some examples of spending that may constitute dissipation include:

  • Buying an affair partner expensive gifts
  • Frequently purchasing plane tickets to visit the affair partner
  • Spending money on a vacation with the affair partner
  • Giving the affair partner marital or non-marital property of a considerable value
  • Selling marital or non-marital property to fund the affair
  • Paying the affair partner’s bills or debt

If a spouse dissipates assets, the other spouse may file a dissipation claim during divorce. The spouse who was wronged may be entitled to a proportionally greater share of the marital assets during property division.

Contact a Joliet Property Division Lawyer

If your spouse spent a considerable amount of money to fund an extramarital affair, you may be able to recover this money through a dissipation claim during your divorce. To learn more, contact an experienced Plainfield divorce attorney from the Law Offices of Tedone & Morton, P.C. Call us at 815-666-1285 or 815-733-5350 and set up your free consultation.

 

Source:

https://public.fastcase.com/ppbqSQpNDaJE%2F8PlIk0b8Nsk8Y3wJm7haqmAUALYjgU%3D

Plainfield, IL divorce attorney asset division

Society typically focuses on the romantic aspects of marriage. However, the joining of two lives through marriage is not only a romantic union, it is also a legal and financial union. Determining how marital property should be divided between the spouses is often one of the most complicated parts of the divorce process. This is especially true if the spouses own complex assets or have a high net worth. If you are preparing for a divorce in Illinois, it is important to know how certain assets may complicate the process.

Small Businesses

If you or your spouse own a business, this may complicate your divorce significantly. In Illinois, only marital property is divided during a divorce. Separate property, meaning property that a spouse owned before getting married, is not divided. However, it is possible for a business that was acquired before marriage to be “transmuted” or transformed into marital property. If you acquired a company during the marriage or you owned a company before getting married but your spouse contributed time or money into growing the business, he or she may be entitled to an equitable share of the company. Often, a spouse who wishes to retain sole ownership of a business “buys out” the other spouse’s portion of the business by giving up assets of a similar value. Before a business may be divided in a divorce, the identity and the value of the business must be determined.

Certain Assets Are Hard to Value or Fluctuate in Value

Some assets are hard to divide during divorce because determining the value of the asset is difficult. Cryptocurrency such as Bitcoin or Ethereum is an alternative form of payment that has skyrocketed in popularity recently. The value of Bitcoin and other cryptocurrencies fluctuates dramatically and there are several different methods of determining its value. Retirement plans – especially pensions or defined benefit plans – are often difficult to value as well. Real estate, investments, stocks, and intellectual property may also be hard to value.

Heirlooms and Items of Sentimental Value

Family heirlooms and other property with intangible or sentimental value is another issue that may add contention to an Illinois divorce. These items may not have great worth financially, but they are valuable to a spouse for personal reasons. Dogs, cats, and other pets are often considered beloved members of the family; however, pets are classified as property per Illinois law. Heated arguments over the ownership of pets and other property of personal or sentimental significance are not uncommon during a divorce.

Contact a Joliet Property Division Lawyer

If you or your spouse own complex assets like investments, stocks, businesses, cryptocurrency, retirement accounts, or real estate, it is likely that these assets will complicate property division during your Illinois divorce. A highly skilled Will County divorce attorney from the Law Offices of Tedone & Morton, P.C. can help you negotiate a property division settlement or, if needed, advocate on your behalf during litigation. Call 815-666-1285 or 815-733-5350 to schedule a free consultation.

 

Source:

https://www.insidermedia.com/blogs/north-west/what-happens-to-cryptocurrency-in-a-divorce

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