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Orland Park divorce lawyers

Divorce is stressful and it is rare that anyone walks away financially unscathed. Splitting up means leaving a combined household and having to set up two different homes and lives. It also means assets and debts will be divided, and despite the best efforts of the court, individuals often feel shortchanged. However, there are some steps a person can take in order to take less of a financial hit in a divorce. 

Know Your Assets and Debts (And Your Spouse’s)

Not every husband or wife is totally honest about what they own or what they owe. If you are faced with divorce, one of the first things to do is account for all bank accounts, investments, retirement plans, insurance policies, etc. that your spouse has. You also need to know where you stand on debt, like credit cards, taxes, and medical bills. One way to go about finding any hidden items is by getting a copy of your spouse’s credit report. If there is anything you do not recognize, you will need to dig deeper, perhaps with the help of a forensic accountant.

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Posted on in Divorce

Orland Park alimony attorneyA tax policy related to divorce and in place for seven decades will end at the end of this year as part of the federal tax overhaul of 2017. For divorces after Dec. 31, those who pay spousal maintenance can no longer deduct alimony payments from their taxes. Also, maintenance recipients will no longer declare alimony as taxable income. 

Because this change to the tax code is expected to reduce the amount of money divorced couples have on hand to split between them, divorce lawyers say they have seen a noticeable increase in filings as the year-end deadline approaches.

How Alimony Works with New Law

The U.S. Supreme Court ruled in 1917 that alimony was not tax deductible, a rule that changed in the 1940s. The new law will pay a small portion of the $1.5 trillion in tax cuts scheduled over the next decade, with $6.7 billion added to the U.S. Treasury.

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Illinois alimony lawyersIn divorce, spouses sometimes require an additional influx of income supplied by their ex-spouse as they restart on their own. In Illinois divorce cases, this was once referred to as alimony or spousal support but is now called spousal maintenance.

During the divorce process, spouses who will pay maintenance and those who will receive it often wonder what amount they can expect. Starting January 1, 2019, a change in Illinois law will impact that figure. To ensure you either receive or pay the justified amount, you need a skilled family law attorney, like those at Anderson and Associates, P.C., who can serve as your advocate throughout your divorce proceedings.

Here is a look at how spousal maintenance will be figured starting at the beginning of next year:

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Tinley Park spousal maintenance lawyerIn many divorce cases, one spouse may be required to pay spousal maintenance (also known as alimony or spousal support) to the other for a certain period of time following the end of the marriage. This typically occurs in situations in which one spouse earns a higher income, when a parent has chosen to remain at home to care for children rather than earn an income, or when one spouse helped the other obtain education or pursue career advancement. 

Spousal maintenance is meant to help a spouse continue living in the manner they were used to during their marriage while allowing them to become financially self-supporting. Spouses who expect to receive or pay spousal support after their divorce should be aware of some recent updates to Illinois law that may affect them.

Maintenance Amount

In Illinois, the amount of maintenance is determined by subtracting 20% of the recipient’s gross income from 30% of the payor’s gross income. This amount, when added to the recipient’s income, cannot be larger than 40% of the spouses’ combined incomes. 

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