If only getting divorced could be simple. Modern divorces tend to involve far more than splitting a house and bank account—especially for high-net-worth individuals. The more complex the finances become, so do the legal issues. Unless you and your ex are broke, a skilled divorce attorney can be an invaluable resource in this area, since the outcomes are highly dependent on the details of each individual case.
Five Top Financial Issues in Illinois Divorces
Reviewing the most common complex financial issues faced in today’s divorces will help you understand what really matters in your own divorce. It may also help you narrow down the types of assistance you want your divorce lawyer to provide.
1. Hidden or Complex Assets
The fact is that in many divorces, particularly in high-net-worth cases, assets are not always straightforward. Your ex’s money may be spread across multiple investment accounts, trusts, cryptocurrency holdings, or even overseas accounts. This matters because Illinois courts can only divide what they know exists, and undisclosed assets can lead to an unfair outcome.
Speak to someone with the legal expertise to manage the more arcane financial aspects of your divorce. This person will help by:
- Conducting thorough financial discovery;
- Walking you through formal financial disclosures;
- Explaining what documents to request; and
- Doing any additional forensic analysis.
You may need to bring in a forensic accountant to sort through and properly value all of your marital assets to help you reach a fair outcome.
Related reading: Find out more about the ways people try to hide assets in divorces.
2. Business Ownership & Valuations
When one or both spouses own a business, divorces automatically become more complicated. Whether the business is a startup, a professional practice, or a family-owned company, it often represents a large portion of the couple’s wealth. You can’t easily split a business down the middle without harming its value or altering it completely. Under Illinois law, even a business started before the marriage might have a marital portion if it grew during the marriage.
Find a divorce attorney who works with business valuation experts and knows how to structure fair solutions. If you’re dealing with a buyout or end up trading other assets, you want to approach the process in a way that allows the business to survive and makes space for an equitable settlement.
3. Spousal Support in High-Income Cases
Three steps generally take place when couples are determining spousal support:
- Carefully analyze your and your partner’s true income;
- Apply Illinois maintenance guidelines appropriately; and
- Negotiate support terms that are fair and sustainable for both parties.
However, affluent individuals usually have more than bi-weekly paychecks to consider. Your spousal support decision will depend on what types of income you or your ex have—for example, whether it includes fluctuating or non-traditional sources of income. Are you a longtime business owner? Is your former spouse a high-earning professional whose income stems from bonuses, investments or commissions?
Keep in mind that spousal support orders can last for years under Illinois law. Like it or not, the more money you’re dealing with, the more involved this step is likely to be.
4. Future Earnings: Bonuses, Company Stock & Future Compensation
Timelines are also an important factor in divorces. The country’s top executives and tech professionals are paid partly in company stock, future bonuses, or compensation that won’t materialize for years. These benefits can be earned during the marriage but don’t show up as cash right away.
Future earnings can be extremely valuable as well as easy to overlook or misunderstand without the right representation. While the courts may determine which portions were earned during the marriage and how they should be divided, a knowledgeable divorce attorney can ensure these future assets are accounted for and divided in a way that is fair and enforceable.
5. The Tax Consequences of Property Division
Most people don’t want to think about their taxes, and why should divorce be any different? This is another important area that shouldn’t be overlooked. After all, two people dividing their money or selling their assets can trigger tax bills that a non-expert won’t know about in advance. If you share significant marital assets, you’ll need an agreement that takes into account your changed filing status post-marriage and other tax implications that could affect your future income.
Items that carry different tax consequences when transferred or sold include:
- Retirement accounts;
- Investment portfolios;
- Homes & other real estate properties; and
- Business interests.
Therefore, a settlement that looks equal on paper may turn out to be very imbalanced after taxes. A good divorce attorney understands how divorce settlements interact with federal and state tax rules. They may also work with financial professionals to structure agreements so that they minimize unnecessary tax burdens on the client.
Consult a Divorce Lawyer Serving Cook, DuPage, Will, & Kane Counties
Want a partner who will protect your financial future? Our team has extensive experience handling sophisticated financial issues in divorce cases with long-term consequences.
Call 630-504-7210 to schedule a consultation with the Law Office of David A. King, P.C. We proudly serve clients in Cook, DuPage, Will, and Kane Counties. Get in touch by form, phone or email to discuss what we can do for you.
