Couples in Illinois who need to divide a 401(k) or company pension plan will need to use a document known as a qualified domestic relations order. Otherwise, they may have to pay high taxes and early withdrawal penalties. A QDRO should be prepared by an attorney in consultation with the plan administrator.
The possibility of divorce may not be the first thing on the minds of couples in Illinois who are getting married, but it might be a good idea to prepare financially all the same. For people who worry that this indicates a cynical view of marriage, one financial expert points out that it is not very different from the precautionary step of putting on a seat belt when getting into a car.
Divorce at any age can be difficult from a financial and emotional perspective. However, there may be unique challenges that Illinois residents or others face if they get divorced later in life. For instance, an individual who may be entitled to alimony may need to find ways to protect that source of income. This may be done by asking to receive a lump sum as opposed to monthly payments.
The financial aspects of a divorce can be some of the most challenging and troublesome parts for Illinois couples, especially when the marital assets are complex. In many cases, a family business may be the most valuable property in the marital estate and a settlement based on its value could be essential to the resolution of the divorce. When dividing such an asset, there can be a number of questions to resolve, including the proper valuation of the business, dealing with its value in relation to spousal support and other assets and ensuring proper reporting of income related to the business.
When Illinois couples decide to end their marriages, some want to use their divorces as a way to get revenge against their estranged spouses. People should never seek to get revenge through the divorce process because doing so is likely to make the situation much worse.
Studies show that the divorce rate has fallen among adults between the age of 25 and 39, and a large reason for this is the later age at which people are marrying for the first time. However, this also means that Illinois couples who end their marriage in their 20s may feel isolated from their peers, most of whom are not divorced and many of whom may not even have married yet.
Illinois residents may have been told what marriage is supposed to be like. One of the common stories surrounding marriage is that it results in a lack of sex or intimacy in generally. The truth is that a couple can make their relationship into anything that they want it to be. This means that sex and intimacy may not necessarily go away just because a couple has walked down the aisle.
Illinois residents who have an entrepreneurial spirit may be less likely to succeed in their marriages. One of the reasons why this may be the case is because those who start their own businesses are under intense pressure on a regular basis. However, even a person who creates the next Uber may not survive the rigors of marriage.
Some Illinois couples whose marriages are coming to an end might want to try negotiating a settlement agreement instead of going to litigation to have a judge decide how property will be divided and time with children will be allocated. This approach may be more satisfying for people who are well-prepared.
Divorcing couples in Illinois may experience a broad range of emotions as they go through this transition. Amidst periods of anger, despair, shame and a possible desire to hurt the other spouse in an attempt at retribution, parties may face financial decisions that could have long-reaching effects on their lives moving forward. According to one family law attorney on the East Coast, spouses who take a more businesslike approach to the decision-making process may find it easier to avoid several common mistakes while making the divorce a little more manageable.