In a recent post, we discussed the income tax treatment of alimony payments. For Springfield residents, who are going through a divorce or who were divorced last year, there are other significant tax implications. One of these is the capital gains tax and its impact on the divorce property division.
Now that tax season is upon us, Springfield-area residents who have recently been divorced may be wondering about the tax consequences of their marital dissolution. In this week's post, we'll look at the tax treatment of alimony payments. Alimony, also referred to as spousal support, refers to payments made by one former spouse to help the other recover financially after a divorce.
Illinois cases in which a couple is at the end of a marriage can be complicated. This is particularly true when there are children involved. Adding to the litany of issues that will arise is when the couple in question is prominent and has significant assets. Those who are involved in a divorce that has the extra issues that accompany a great amount of attention must make certain that they protect themselves from the beginning of the process to the end.
Springfield residents who are preparing to divorce will frequently have a difficult time dealing with such an emotional time. The last thing on their minds are the various ramifications of a divorce if they do not take certain steps and precautions. However, it is important to remember these issues. This is particularly wise at the start of the new year, as research has shown that many people file for divorce in January.
Not all Illinois divorces are desired by both parties. In fact, while a large portion of divorces are done with both parties in agreement, there are situations when one spouse will contest the divorce. This is one of the divorce legal issues that is often understated. For those who are seeking to divorce and have a spouse who is contesting it or a spouse who would like to try and save the marriage, legal help is essential.
Divorce can be a difficult situation for any Illinois couple, but it is particularly complicated when there is a significant amount of money involved and it is a high-profile marriage. There can be complex property division, items in dispute, and the need to navigate the difficult pathways that accompany such a situation. As with any legal case, it is wise to have advice from experienced professionals from start to finish. If the end of a marriage is likely to be played out in the media, this is especially true. Regardless of the circumstances, having legal help in moving forward with a divorce is an imperative.
Illinois couples who have a significant number of assets when they decide to end their marriage will often end up in a dispute regarding property division, spousal support and other issues. A high asset divorce might not seem pertinent to a workaday person, but that does not eliminate the divorce legal issues that come up. In fact, many might be quite similar. With any divorce, one of the key factors is to have competent legal advice that can adapt to any circumstance.
Illinois couples who are ending their marriage will consider a great many different issues. Finances can be contentious and difficult whether it is a high asset divorce or one of more modest means. Property division, spousal support and other factors will come to the forefront in a divorce. This is particularly true when people over the age of 50 are getting a divorce. Statistics are indicating that these divorces are on the rise. With that in mind, the issues that come up with them should be taken into account.
Ending marriages is not something many Illinois couples go through more than once or twice in their lifetimes. Many believe what they have heard about divorce and the trauma of litigation. However, there are alternative options, and couples who decide to divorce while they are still communicating may find that they can avoid going to court. Spouses who can sit down and talk through contentious issues may reach agreements that will be less costly and less stressful, and they might even learn new negotiating skills that will help their post-divorce communications.
As we have written about before on this blog, prenuptial agreements are helpful contracts that can guide a married couple through a divorce. It can even help a soon-to-be-married couple confront some difficult topics before they walk down the aisle -- such as financial considerations and asset protection. In the absence of a prenuptial agreement, property division defaults to state laws when a divorce occurs.