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Recent Blog Posts
Who Gets the iTunes in Divorce?
When a couple decides to end their marriage, part of the divorce negotiations often involve how marital assets will be divided. Houses and other real estate, cars, furniture, bank accounts, IRAs and other retirement funds are typical items that need to be divided between the spouses.
But what about the massive iTunes collection the two may have downloaded over the years? And the voluminous Kindle library the two have acquired? In today's digital world, more and more couples are adding digital assets to the list of items that need to be divvied up in a divorce.
According to a recent article in MainStreet.com, these digital assets are considered marital property. Regardless of which spouse physically downloaded the items, these digital assets are given a value and are part of the "equitable distribution" process of divorce settlements.
Poll Pinpoints Cities With Most Infidelity
According to a recent article in The Guardian, adultery is no longer the number one reason for divorce. Infidelity, it turns out, falls behind "bad behavior" as the leading cause for marital dissolution. Cooperative Legal Services, the agency who performed the survey, "found that while in the [19]70s, 29 percent of marriages ended because of adultery, the latest figures show only 15 percent of divorces were down to infidelity." This survey, of course, was conducted in the U.K. While lifestyle trends are usually similar in the U.S. and the U.K., according to the Huffington Post, "a lot of people cheat, and most Americans disapprove."
The Huffington Post reports that Ashley Madison, a social networking site for men and women looking to cheat on their spouse, culled its membership data to pinpoint the "least faithful cities" in the country. According to the data, 54 percent of Americans "say they know someone who has an unfaithful spouse." More than 90 percent of Americans, however, say that they think cheating is morally wrong. Chicago is the 9th highest-ranking city when it comes to infidelity. Washington D.C., Houston, and Miami are the top three cities.
Conducting a Year End Estate Planning Review
With the New Year on the horizon, now is a great time to review all of your estate planning documents and get them updated. Don't let this important review pass you by-if your circumstances have changed at all you need to revise your documents. To ensure that your materials are up to date, set a yearly calendar reminder to look them over before the new year starts. If you need changes to your documents, reach out to an estate planning attorney today to get your appointment scheduled. Skipped making your will and other documents last year? Now is a great time to get your house in order.
Another reason that the end of the year is a great time to conduct an annual review on your documents is that when there are changes in federal or state law, they tend to take effect starting in January. This upcoming year is no different, as there are several changes in estate planning law that are coming in 2014. Starting in January, 2014, the amount of tax free transfers to family in a lifetime is increasing by $90,000. Doing your annual review now allows you to speak with your estate planning attorney about changes that might affect your documents or your estate.
Why Just Having a Will is Not Enough
Everyone knows that they must get a will before it is too late. Those who know better know that a will alone is simply not enough. It is true that having a proper will is an important tool in preparing for death, but it is only one in a set of tools that an estate-planning attorney has.
The estate-planning attorney uses these tools to achieve their clients' objectives. This is especially important for larger estates that may have several overarching interests.
One goal may be privacy. If a will goes through probate pursuant to the Illinois Probate Act, it will be a public document, allowing anyone to have access to it. This could create conflict in cases when a family member was left out of the will or gets a smaller portion of the estate.
One goal may be continuity. For example, if most of the assets are tied up in a business or some other venture that one may want to continue after their death, they leave sufficient assets to a trust, which would avoid probate and use the trust funds to continue the business. The trust then would pay any income that it earns from its investment to the family members until a specific event occurs, e.g., the children turn a certain age.
What to do with the House during Divorce
During a marriage, each partner contributes to the overall health and wealth of the relationship. One spouse may have supported the other through school. Or a spouse may have supported the entire family throughout their career.
But, even if one spouse maintains the home and watches the children, they still provide valuable services to the partnership. Since both spouses deserve a stake in their shared property, then it is important to have a plan about the biggest part of that property, the family home.
Illinois is an equitable distribution state. That means both spouses have a claim to a portion of the marital home during the division of property but the split may not exactly be 50/50. Each spouse may want to keep the house and even be willing to fight for it.
Different Kinds of Trusts and Their Uses
If you have property or assets that you want to leave to your heirs, then you have several options. A trust can shield these assets from taxation and also probate. It allows you to protect your legacy and control your wealth. They are essential to good estate planning so it is important to know what they can do.
There are two types of trusts. The first is a living trust, which is called that because it is active during the grantors lifetime. A living trust can either be revocable or irrevocable. A revocable trust can be changed at any time in the grantor's lifetime. If a relationship, circumstances or your intentions change then it is not an issue. But while it does avoid probate, a revocable trust is subject to estate taxes.
An irrevocable trust is the opposite. It immediately transfers your effects out of your estate and into a separate legal entity. There is no way to change your mind or use these assets because they are not yours anymore. Benefits of an irrevocable trust is that it can avoid probate and estate taxes.
Starting Over: Reinventing Yourself After Divorce
What leads couples to file for divorce is as different as the couples themselves. However, moving on after a divorce can seem overwhelming for many couples. Nonetheless, there is life after divorce according to Dr. Phil and he offers some tips that anyone can use to reinvent him or herself after divorce.
Learn to Let Go
After divorce, it's easy to dwell in the past. For some people it's easy to relive unpleasant parts of a divorce but this isn't helpful. It is okay to grieve but not forever. Give yourself time to process what is happening but don't dwell there. Work through your feelings and move on.
Stomp Out Negative Self Chatter
Everyone has a voice inside that either encourages or discourages. During this emotional time, discouraging messages may be prevalent. Now isn't the time to beat yourself up. Counteract any catastrophic language with positive messages that say life isn't over it's just beginning.
What is a Special Needs Trust?
Trusts can be an effective way to protect your assets while also ensuring that those assets wind up where you intend while avoiding probate. At its most basic, a trust creates a legal relationship between parties in which the assets of the trust are held by one party for the benefit of another. The parties to a standard trust are known as the settler (or grantor), the trustee, and the beneficiary or beneficiaries. Each party has a particular role, detailed below:
- The settler/grantor provides the assets to be held in trust. Trust assets can be bank accounts, real property, investments, or even personal property.
- The trustee is the party who hold the property for the benefit of those who are intended to benefit from the trust. A trustee owes duties, some fiduciary, to the beneficiaries of the trust.
- The beneficiary or beneficiaries of the trust are the party or parties who are entitled to the benefit of the trust assets. Beneficiaries can be companies or natural persons.
Divorce Effects on Estate Planning in Illinois
Choosing the right divorce attorney is crucial to avoid problems down the road. There is much more to a divorce than just getting a court decree that terminates the marriage. Any divorce decree will at the very least contains a sustainable custody and visitation schedule that will survive the test of time.
Fortunately, an experienced divorce attorney will make sure that the divorce decree accounts for each minute detail, no matter how unimportant it may sound. A properly prepared joint parenting agreement, for example, will contain a calendar setting forth the daily visitation schedule, specify which parent has visitation during which holidays and calls for periodic reviews.
Moreover, an experienced divorce attorney will make sure that child support obligations are realistic in the long term so they can truly benefit the children. A good divorce attorney will have a practicing understanding of other areas of law, like estate planning, which may affect the divorce or support obligations. The attorney will rely on that understanding to ensure best outcome for the client and their children.
Four Steps to Take Before Filing for Divorce
If you are considering filing for divorce in Illinois, but have not discussed your wishes with your spouse yet, there are several steps you should take before you announce your intentions. These steps may be especially important if you suspect that your spouse will not react well to your request for a divorce or separation.
1. Make copies of important paperwork.
When filing for divorce you will need copies of important financial statements. This includes tax returns for the last three years, statements for retirement accounts, and credit cards. Instead of paying to get copies after you are separated, make copies before announcing your intention to file if you suspect your spouse may become difficult.
2. Build up a cash reserve.
You will need your own funds to live off of, as well as a way to pay your legal fees. It is never a good idea to plan to rely on joint credit cards or bank accounts, as your spouse may choose to close these once you've announced your intention to file for divorce. In order to avoid putting yourself in a situation where you become desperate for money, spend at least six months building up a cash reserve to get you through the tough periods.
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