Divorcing couples who jointly hold a mortgage may agree that one spouse will keep the family home by buying out the other’s interest or trading it against another asset. Of course, because both parties’ names are on the mortgage, the spouse retaining the home must refinance the mortgage to remove the other spouse’s name, clearing…Read More
Dividing Home Equity in a Divorce
Whether you and your spouse decide to sell the marital home and split the profits or one spouse is going to buy out the other, you will want to have a professional appraisal of your home to determine the fair market value. Most real estate appraisals are based on comparable sales, meaning houses that are…Read More
New Tax Law Impacts Keeping the Family Home in a Divorce
The recently enacted tax law, effective January 1, 2019, will have a number of impacts on divorcing couples. The new tax law not only eliminates the tax deductible allowance of spousal maintenance for payers, but will also have implications on the valuation of closely held businesses and property tax deductions. Alimony Under the New Tax Law…Read More
Quit Claim Deed in a Divorce
When couples divorce, they may wish to sell the family home and split the proceeds. Other times, one spouse may wish to stay in the home while the other moves out. In the latter case, divorcing couples may use a quit claim deed to fulfill the requirements of property division in a divorce. A quit…Read More
New Illinois Law: Custody of Pets in a Divorce
A new Illinois law effective January 1, 2018 will allow a judge to decide who will get the family pet in a divorce. Currently, pets such as dogs and cats are treated like any other property to be divvied up in a property settlement agreement. However, the new Illinois law seeks to treat pets less…Read More
Should I Keep the Marital Home in a Divorce
One of the most valuable assets couples share is often the family home or other real-estate such as a timeshare, which are considered real property. When couples divorce, in many cases they will either sell the property and divide the proceeds or one spouse will buy out the other. However, sometimes it is not feasible…Read More
Trusts in an Illinois Divorce
A trust is set up by a grantor (aka settlor or trust maker) typically for the benefit of a beneficiary, who may receive distributions during the grantor’s lifetime or upon death as directed by the trust. Trusts can be revocable or irrevocable, funded by marital or separate property, which speaks to how they will be…Read More
Divorce Settlement Agreement
If you and your spouse are contemplating divorce and have decided to work together to divvy up your assets including retirement funds, a word of caution. Without a court order, you may have to pay tax penalties on the early distribution of your retirement funds you divide with your spouse. A Qualified Domestic Relations Order…Read More
Determining Child Custody and Support for a Disabled Child in a Divorce
When there is a child with special needs involved in a divorce, issues of child custody, visitation, child support, spousal maintenance and property division are significantly more complex. As a guiding principle, courts consider what is in the best interest of the child when deciding parenting time arrangements, aka child custody and visitation. However, determining…Read More
Dividing Retirement Accounts in a Divorce
Marital property may include retirement funds that need to be divided in a divorce. When trying to reach an agreement, many couples may feel that a 50/50 split seems fair. However, after considering factors such as future earning power and tax treatment of retirement funds, it may be that dividing these assets equally will prove…Read More
