Recent Blog Posts
Divorce and Alternative Dispute Resolution Methods
Posted on April 06,2017 in Mediation
Divorce is a time during which some couples experience serious discord. As such, there are those couples for whom attempting to amicably discuss issues may wind up being more trouble than it is worth. Illinois law permits couples to pursue alternative methods of dispute resolution, and if you and your spouse are looking to avoid a potentially messy courtroom fight, one of these methods may be right for you.
Mediation
Mediation is the most commonly used form of alternative dispute resolution (ADR) in Illinois, due to its relatively low cost and efficiency. While court dockets may be clogged, a mediation may begin as soon as a third-party mediator is located. In Illinois, there are no statewide qualifications for mediators, though certain standards of practice are generally observed. A mediator is not required to hold any specific licensure, though they are required to have at least a bachelor’s degree in a relevant field and be in good standing if they are a member of any professional organizations.
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Imputed Income in Child Support Cases
Posted on April 04,2017 in Child Support
Illinois courts calculate child support payments using a state-mandated formula that takes into account a number of factors, but focuses on the supporting parent’s income and expenses. In some circumstances, such as a heavily contested divorce, the parties may present conflicting evidence regarding their respective income. If the court has reason to believe the supporting parent has provided false, misleading, or inaccurate information about his or her finances—or if the parent is intentionally unemployed or underemployed—a judge may “impute” additional income to the parent for purposes of calculating child support.
Bank Records Show Husband Has More Income Than Claimed
Here is an example of how and when a court imputes income. In a recent Illinois divorce case, a wife filed a petition for temporary child support. The couple had three minor children who lived with the wife. In response, the husband filed a financial disclosure statement that stated he had a net income of negative $5,000 per month, meaning that he was investing substantial resources in running his business. While the wife claimed that the family's living expenses were more than $9,000 per month, the judge found neither party especially credible and ordered $6,000 per month in temporary support.
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Bankruptcy Could Affect Divorce Proceedings
Posted on March 30,2017 in Divorce
Many marriages fail due to financial stress. Even if there are other factors involved, if one or both spouses file for bankruptcy, that may complicate any pending divorce proceedings. The biggest impact, in many cases, stems from the fact that filing for bankruptcy in federal court automatically stays or suspends any pending judicial proceedings involving the debtor. This includes a divorce lawsuit that has already been filed in the Illinois courts.
Chapter 7 Bankruptcy
In a Chapter 7 bankruptcy, a debtor must turn all of his or her assets over to a court-appointed trustee. The trustee then liquidates the assets, subject to certain exemptions, and uses the proceeds to pay back the creditors as much as possible. Any exempt or remaining assets are then returned to the debtor, who receives a discharge from the bankruptcy court.
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Beauty Workers Join the Fight Against Domestic Violence
Posted on March 28,2017 in Domestic Violence
In salons throughout Illinois, hairdressers and stylists have heard it all. They are privy to some of the personal details of their clients’ lives. The intimate relationships they develop with their clients allows many stylists insider information about marriages that may be failing, sexual indiscretions, and other juicy gossip. Due to the nature of their jobs—and the close physical proximity to their clients’ bodies—beauty technicians are often among the first “outsiders” to suspect issues of domestic violence. In some cases, the client may even flat-out say it. Thanks to a new law, stylists and beauticians will soon have the training and tools to help those who have been victimized.
Licensing Requirements
The new law, which went into effect on January 1, 2017, amended the existing statute regarding licensing for barbers, hairstylists, nail technicians, and other beauty professionals. To obtain or renew their state certification, individuals will be required to participate in an “awareness and education” program focused on preventing and identifying domestic abuse. The program was developed specifically for beauty professionals does not purport to make trainees experts on domestic violence. Instead, the program’s goals are to help stylists recognize the signs of domestic abuse and to provide resources to clients who ask for help.
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Moving Out of Illinois After a Divorce
Posted on March 23,2017 in Child Custody
Child relocation is often a touchy subject, especially when parents have already been through an acrimonious divorce. Even when the child already lives with one parent the majority of the time, that parent cannot simply pack up and move the child to another state. Instead, the parent seeking child relocation must seek the other parent’s approval. Failing that, the parent looking to move must file a petition with the court, which the other parent has the right to contest.
Looking Out for the Best Interests of the Child
So how does a court decide whether to permit a child relocation? Illinois law says the paramount concern is always the “best interest” of the child. To help determine this, a judge may look at a number of factors, including the “history and quality of each parent's relationship with the child,” how well the parents have complied with their existing parenting plan, whether the child will have better “educational opportunities” at the new location, and the “presence or absence of extended” family at the new location versus their current residence.
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Drug Abuse and Parental Responsibilities
Posted on March 21,2017 in Child Support
Illinois courts weigh a number of factors when allocating parental responsibilities—previously known as child custody—in divorce cases. The ultimate goal is promoting the best interests of the child. These factors include each parent's relative mental and physical health. For example, a judge may take into consideration a parent's alcohol or drug abuse when deciding who the child should live with.
If you have reason to suspect your ex-spouse or co-parent is unable to properly care for your child due to substance abuse, it is important to bring your concerns to the court's attention. You should not, however, make unfounded accusations without proof, nor should you assume that your personal experienced is a substitute for medical evidence.
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When Does Separate Property Become Marital Property?
Posted on March 16,2017 in Divorce
When it comes to divorce, Illinois law defines marital property as any assets or debts that either spouse acquired during the marriage. Assets the spouse owned prior to marriage are generally considered separate, non-marital property. However, it is possible for separate property to be reclassified as marital property through a legal doctrine known as “transmutation.”
Court Refuses Husband's Request for Reimbursement of House Payment
What does transmutation involve exactly? Here's an illustration from a recent Illinois divorce case. A could divorced after 28 years of marriage. The couple owned a home that they purchased in 1999. The husband made a $20,000 down payment for the house, which represented the proceeds from the sale of various items personal property that he owned prior to his marriage.
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What Does an Illinois Court Consider Income When Determining Alimony?
Posted on March 14,2017 in Alimony/Spousal Support
Long-term spousal maintenance, or alimony, is designed to help a spouse who was in a lengthy marriage and is unable to earn an independent living following divorce. An Illinois court will consider a number of factors in deciding when and how much alimony to award. A judge may also subsequently modify an award if there is a change in financial circumstances.
For example, if the spouse receiving maintenance suddenly experiences an increase in his or her income, the court may reduce the ex-spouse's obligations. In this context, “income” can refer to any money received by the spouse. It does not necessarily mean taxable income as defined by the Internal Revenue Service.
Court Reduces Maintenance Due to Family Gifts
Consider a recent illustration of that point from an Illinois appeals court. Several years after his divorce became final, an ex-husband asked the court to either reduce or terminate his alimony obligations to his ex-wife due to a change in financial circumstances. The court, after its own review, agreed to a reduction, citing in part a series of “unexplained deposits” to the ex-wife's bank account totaling more than $72,000.
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How Much Are Stock Options Really Worth in a Divorce?
Posted on March 09,2017 in Divorce
Stock options are among the trickier assets to deal with in a divorce. Unlike outright owning stock in a public company, which is easy to value based on market prices, stock options represent a right to purchase shares of a business at some future date. When one spouse has stock options as part of his or her compensation package, the other spouse may not be aware of these options or how they actually work.
Understanding Stock Options
The basic idea behind stock options is relatively simple in theory but can be rather complex in practice. For instance, assume an employer grants an employee the option to purchase 1,000 shares after the employee has worked at the company for five years. Once the option vests, the employee is guaranteed the right to purchase the option shares for a fixed price, regardless of their actual market value. So, if the options were granted at $5 per share, that is how much the employee would pay, even if the stock is now worth $30 per share.
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Hiding Assets in Digital Currencies
Posted on March 07,2017 in Divorce
A common concern in divorce cases is that one spouse may be hiding assets from the other. In the past, hiding assets might have involved stashing cash in a safety deposit box the other spouse does not know about or transferring an investment account into the name of another family member. In the digital age, however, there is another method an unscrupulous spouse might employ—using marital assets to purchase Bitcoins.
Hiding Money in Digital Wallets
You may have heard of Bitcoin and similar digital currencies without understanding exactly how they work. Essentially, Bitcoin is an independent financial network that allows individuals to send electronic payments to one another. These payments are expressed in units of “Bitcoins,” which are not physical currency but rather the product of a complex encryption algorithm. This is why Bitcoin is often called a “cryptocurrency.”
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