Recent Blog Posts
How Are Retirement Benefits Addressed During an Illinois Divorce?
If you have chosen to get a divorce, you will need to address multiple types of financial issues, as well as the legal matters involved in dissolving your marriage. The process of property division can often become complicated, especially if you and your spouse own multiple and different types of property and assets. Retirement benefits are an issue that sometimes can complicate this process, and determining how to divide these assets correctly can ensure that you will have the financial resources you need later in life.
Retirement Accounts, Pensions, and QDROs
Generally, any retirement benefits you or your spouse earned or contributed to during your marriage are part of the marital estate. They will need to be divided alongside your other marital property. These benefits may include retirement accounts provided by an employer, such as a 401(k), or an individual retirement account (IRA), as well as pension benefits earned while you were married.
What Are Some Clues that a Spouse is Hiding Assets During an Illinois Divorce?
If you are getting divorced in Illinois, you and your soon-to-be spouse will be asked to file a financial affidavit with the court. You will be expected to list information about your income, expenses, debts, and assets. Unfortunately, some spouses lie on their affidavits in an attempt to gain a financial advantage during a divorce. Lying about finances during divorce not only is unethical, but also, it is also unlawful. Divorce issues such as property division and child support should be based on accurate, up-to-date financial data. If you are getting divorced, make sure to watch out for signs of hidden assets and other forms of financial fraud.
Keeping Financial Information a Secret
Per Illinois law, you have a right to an equitable portion of the marital estate. This means that you have a right to a fair share of any assets that were accumulated during the marriage. This may include bank accounts, retirement funds, business revenue, profits from investments, and more. One clue that your spouse may attempt to cheat you out of your fair share of the marital estate is a sudden increase in secretive behavior. Rerouting mail to a P.O. box, hiding tax returns and other financial documents, changing online banking passwords, and refusing to discuss finances with you, may all be signs of deception.
How Can I Obtain a Legal Separation in Illinois?
The decision to divorce is not an easy one to make for many people, especially if a couple has been married for a long time. In certain situations, spouses may opt to try a legal separation before officially divorcing. Following an order of legal separation, estranged spouses will agree to live independently of each other, separating both their physical residences and their finances. The couple will remain legally married, and neither spouse can remarry unless they get a divorce.
As the old adage says, “Absence makes the heart grow fonder.” For some partners, living apart allows them time to work on their marital problems. However, they may also find that they are thriving on their own and enjoy living separate lives. If you are considering which option is best for your situation, it is important to know the legal requirements for legally separating in Illinois. In the state of Illinois, some of the same issues that are addressed in a divorce will need to be resolved in a separation.
How Can Chapter 13 Bankruptcy Help Me Avoid Foreclosure?
Anyone can encounter unexpected financial problems that can put him and his family in a difficult position. This has been especially true during the COVID-19 pandemic, which has caused millions of people throughout the United States to lose their jobs or suffer health-related setbacks that have affected their income or resulted in large debts. A family that has struggled to pay ongoing expenses may be concerned that it may face foreclosure if they default on their mortgage. Fortunately, homeowners may be able to receive relief through Chapter 13 bankruptcy. By filing for bankruptcy, homeowners may eliminate certain types of debts and avoid losing their homes.
Addressing a Mortgage During a Chapter 13 Bankruptcy
First, filing for bankruptcy will place an automatic stay on any collections by creditors. This will put a halt to foreclosure proceedings that have been initiated by a lender, giving a debtor the necessary breathing room to determine his options. He can then determine what types of debts will be included in his bankruptcy and create arrangements that will allow them to maintain ownership of his home.
How Does the Latest Stimulus Relief Bill Affect Foreclosures?
The COVID-19 pandemic that began last year caused not only a health crisis but an economic crisis as well. Falling behind on mortgage payments can happen, especially if one’s hours are reduced or he lost his job completely. Missing housing payments can lead to financial hardship and foreclosure.
The U.S. government extended the moratorium on foreclosures through June 30, 2021. The policy also extends the mortgage forbearance window until the end of June and provides up to six months of additional mortgage payment relief for the 2.7 million Americans who are already benefiting from it. There are additional forms of assistance that may help avoid having to go through a foreclosure on your home.
American Rescue Plan
Any reduction or loss in income can make it difficult for many people to come up with the money for essentials, such as food, utilities, and mortgage payments. It is important to note that not everyone is covered under the current forbearance policy. The program only applies to mortgages that are government-backed, which makes up approximately 70 percent of existing single-family home mortgages. Since private-market mortgages are not eligible for the new relief, there may be additional extension of the forbearance and stimulus payments.
How Does Bankruptcy Affect Property Division in an Illinois Divorce?
Getting a divorce can be stressful, not only emotionally, but financially as well. If one spouse did not work during the marriage, the thought of being on his or her own can be particularly daunting. In some marriages, one spouse may have dissipated or hid assets, or even accumulated a significant amount of debt. In addition to property and assets, any marital debt will need to be divided equitably in an Illinois divorce. If you are struggling to make ends meet, filing for bankruptcy before your divorce may put you in a better financial situation in the future. However, although the Illinois divorce court can determine issues such as child custody, parenting time, child support, and spousal maintenance, it cannot divide property in the bankruptcy estate. In some cases, bankruptcy proceedings can delay the division of property in divorce proceedings.
Understanding if Bankruptcy Is Right for Your Situation
The word bankruptcy may bring about feelings of financial ruin or destitution. However, more people file for bankruptcy than you might expect, especially during these uncertain times. A lot of people have lost their jobs as a result of the COVID-19 pandemic since many non-essential businesses are closed. There are remedies when it comes to resolving financial problems. Bankruptcy has many advantages, such as reducing or eliminating your debts. It can also protect your home from being foreclosed on and keep bill collectors from constantly contacting you. However, there can be long-term consequences to your credit score, which may hinder your ability to take out loans in the future. It is important to understand the bankruptcy process to determine if it is a viable option for you.
Chapter 7 & Chapter 13 Bankruptcy
How Has COVID-19 Affected Illinois Divorce Orders?
COVID-19 caused a global health crisis in addition to an economic downturn. In Illinois, non-essential businesses closed to stop the spread of the contagious virus. As a result, many people found themselves out of work or facing reduced hours and income. Depending on the industry, some companies have permitted their employees to work remotely from home. Similarly, many schools have switched to e-learning, with teachers and students participating online through video conferencing apps such as Zoom or Google Meets. With everyone adjusting to this new normal, divorced parents may be wondering if they can modify their current divorce orders for child support and child custody and visitation (now referred to as the allocation of parenting time and decision-making). Under Illinois law, it is possible to request changes to these types of orders in certain situations.
What Is a Parallel Parenting Plan in an Illinois Divorce?
Although couples typically do not enter into marriage thinking they are going to get divorced down the road, it can and does happen. Whether two people have been married a few years or a few decades, life circumstances can change, impacting their relationship. Sometimes, partners simply grow apart, or one spouse may have an extramarital affair. In many contentious divorce cases, a couple may want nothing to do with each other once the ink dries on their divorce decree. However, if a couple has children, they may struggle to share child custody if they are unable to communicate with each other in a civil manner. In these cases, parents may choose an alternative parenting plan. Parallel parenting is a type of arrangement where divorced co-parents have limited contact with each other. Depending on the situation, it may work better than the typical co-parenting option.
How Long Can Spousal Maintenance Last After an Illinois Divorce?
When two people decide to legally end their marriage, it can dramatically change their lifestyle. If one spouse earned a high salary and the other partner stayed home to raise their children, for example, this can impact the divorce settlement. In Illinois, maintenance or spousal support, which was previously called alimony, refers to payments made by one spouse to the other after a divorce to allow both spouses to live at a standard similar to what they enjoyed while married. Typically, spousal support is awarded in cases where there is a significant difference between the spouses’ incomes. If a couple cannot come to an agreement on their own regarding spousal maintenance, the court may intervene. A judge will look at several factors when determining if this type of financial support is appropriate.
© 2025 The Thomas Law Office. All rights reserved. Disclaimer | Sitemap
Thomas Law Office has been serving the needs of clients throughout McHenry County and Kane County in cities such as Elgin, South Elgin, Barrington, Carpentersville, Marengo, West Dundee, East Dundee, Algonquin, Lake in the Hills, Huntley, Crystal Lake, Woodstock, Bull Valley, Fox Lake, Fox River Grove, Harvard, Hebron, Holiday Hills, Huntley, Island Lake, Geneva, Wonder Lake and Cary.
