When couples choose to divorce, there are multiple decisions that must be made. While some people in Illinois may want to rush to an agreement so that they can continue on to the next chapter of their lives, the decisions that are made during the divorce process -- including alimony -- can have a significant impact on each person's future. In some cases, it may be difficult to change such decisions should they prove to be burdensome.
Sacrifice is a large part of a marriage. Often, for example, one spouse in Illinois will choose to sacrifice his or her career to raise children or financial well-being to support their partner during the launch of a business. Unfortunately, this sacrifice can leave one of the spouses in a bleak financial situation if the relationship ends in divorce. In this circumstance -- and others -- alimony may be appropriate.
There is no doubt that the end of a marriage can often be contentious. While relatively rare, animosity can lead to continued conflict for years after an Illinois divorce. In fact, a woman in another state is now seeking a higher amount of alimony after she claims that her ex-husband apparently experienced a change in circumstances.
A new law affecting many couples getting divorced in Illinois and all around the nation will go into effect on Jan. 1, 2019. The law addresses how alimony will be taxed for both the payer and the recipient. The current law has been in place for 75 years, making the upcoming changes in the Tax Cuts and Jobs Act rather significant to those involved.
A tax court judge recently ruled that paying a former spouse's student loan could be claimed as an alimony tax deduction. The decision is considered to be quite profound since the noose has been tightened on alimony deductions as per the federal Tax Cuts and Jobs Act (TCJA), which also affects tax deductions. As it currently stands, alimony payments are deductible for the payor and taxable for the payee, but that will all change this Jan. 1 and will also affect divorcing Illinois couples.
According to researchers, more and more older Americans are deciding to move beyond an unsatisfying marriage by filing for divorce. For those Illinois spouses who are considering such a move, it's important to make wise decisions that are in line with one's long-term financial goals. That includes alimony, which can be something of a risk in later life.
For some Illinois spouses, a divorce marks the end of a very tumultuous and stressful time. It's easy to focus only on the finish line and make decisions that don't benefit from a long-term point of view. But when considering matters of alimony, rash decisions can have lasting financial ramifications and should be avoided at all costs.
Researchers have discovered that people who go through divorce are less satisfied with their lives and have lower levels of activity as compared with those who are married or single. That's important to think about for those in Illinois who are preparing for a high asset divorce. Taking steps to preserve health can make a big difference in how you feel both during and after your divorce.
Many Illinois residents are familiar with the career of Robert Meachem, a former NFL player. Meachem made headlines off the field when he was arrested and jailed for unpaid alimony and child support. That experience led to the discovery that Meachem was cheated out of nearly $1.7 million by a woman he paid to handle his finances.
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.