Throughout the divorce process, financial issues are often a driving force. After years of building a life and family together, the Illinois couple decides that the marriage is over. In many instances, however, one of the individuals earns more than the other. In this case, alimony may become a factor in the Illinois couple's divorce.
Financial concerns are an important consideration when an Illinois couple decides to divorce. Now, rather than supporting one household, the same income is supporting two households. Financial considerations such as child support and alimony are often an important part of the divorce agreement.
Divorces occur every day throughout Illinois. In some cases, assets and liabilities are divided and the individuals part ways. However, in other cases, things are not so simple and one spouse has become dependent upon the other in order to maintain their standard of living. While this may be the case, it does not mean that the individual must remain in an unhappy marriage. In this case, alimony may be appropriate.
When Illinois couples consider divorce, there will likely be one spouse concerned about the need to receive support, and the other spouse concerned about having to pay support. Alimony laws vary among jurisdictions, and the rules for awarding alimony and calculating the amounts may differ slightly from one state to the next. However, it will help if a few general aspects of alimony are kept in mind.
Once you are ordered by a judge in Illinois to pay alimony, your only option is to pay it or face serious consequences. However, before you ever get in front of a judge or into a divorce situation, there are things you can do to help reduce the chances you will be ordered to pay alimony.
In Illinois, you may end up paying unallocated support. This is when the court combines your child support and alimony payments together. At Lois Kulinsky & Associates, LTD, we review cases all the time to see if unallocated support would be a good option for our clients. In some situations, it can help you reduce tax liability. However, this is an area of some confusion, and understanding the tax laws is important to avoid issues with the IRS.
When you are going through a divorce in Illinois, you will likely hear the term “standard of living.” It is important to understand what this means and how it relates to the different areas of your divorce agreement, especially alimony. This standard is used to help make many decisions, and the court relies on it to be fair and just in how it allocates your assets and assigns spousal support.
The alimony laws in Illinois underwent some changes in 2015 and 2016. It is important that you understand the laws if you are trying to get alimony in your divorce case. According to the Illinois State Bar Association, the spousal maintenance laws are rooted in ensuring affordability for the paying party.
Every year, you have to file your taxes, and if you pay or receive alimony in Illinois, you may be wondering how you report it to the IRS. The short answer is that you must report it, but the IRS may define alimony a bit differently than you or the courts. At Lois Kulinsky & Associates, Ltd., we understand that this can be a little difficult to understand. However, it is essential to make sure you are clear on how to report alimony on your taxes.
Bankruptcy and divorce often go hand in hand in Illinois. At Lois Kulinsky & Associates, LTD., we understand that debt is common in a divorce situation. Every situation is unique and bankruptcy laws are firm, so it is important to know what you may face when filing whether it is before or after a divorce.