Property division, parenting plans, child support - with so many things to contend with during a divorce case, tax considerations often get put on the back burner. If you are planning to divorce, it is very important that you understand how the divorce will influence your tax obligations and prepare appropriately. Educating yourself about tax-related matters now can help you avoid unpleasant surprises and unexpected fees later on.

Tax Filing Status

Once the divorce is finalized, you and your spouse will file taxes separately. During the divorce process, however, you may still be allowed to file jointly. If your divorce was not finalized in the previous year, you can file jointly. Filing jointly may allow for a higher deduction and therefore, a larger refund. If your divorce decree was issued on or before December 31, you cannot file jointly for that year.

Tax Considerations for Retirement Accounts

There are tax penalties and fees associated with early withdrawal from retirement accounts. If your or your spouse has a retirement account and contributed funds to it during the marriage, part or all of the retirement funds are likely marital property. To avoid penalties and tax implications when dividing retirement accounts make sure you use the appropriate legal process and orders for dividing shared retirement funds. Typically, this involves a qualified domestic relations order (QDRO).

When a marriage nears its end, the situation can become contentious rather quickly. Both spouses may deal with feelings of resentment, guilt, anger, and fear. Another common element in many divorces is the financial strain that comes with it. If one spouse cannot afford to move out, then the spouses may be stuck living together until a solution can be reached.

Many spouses question whether they can even get a divorce if they are still living together. They wonder if there is a mandatory separation period in Illinois before divorce is permitted and how long it must last. 

If you find yourself in this situation, read on to learn about the divorce requirements in Illinois and what to do if you want to file for divorce but cannot move out immediately.

Even though the Illinois legal system has developed a sophisticated process for handling complaints of sexual harassment, many people still endure this unacceptable behavior at work and are unsure how to handle it. Worries about embarrassment in front of colleagues, a desire to avoid confrontation, and/or a fear of retaliation often keep people from speaking up about sexual harassment when it happens. Sometimes, it can be difficult to recognize that inappropriate behavior is sexual harassment until after the fact. 

However, it is essential to speak up and take action when you feel that are being sexually harassed. There are many reasons for this, not least of which is that what offends one person may not necessarily offend another, and the person bothering you may not realize they are doing so. At the same time, it is important not to let someone continue bothering you simply because they state they do not intend to sexually harass you. 

What is Sexual Harassment? 

While sexual harassment can manifest in many different ways, it is important to know that all sexual harassment is gender-based employment discrimination, and it is against the law. The law puts sexual harassment into two basic categories: Quid pro quo (the exchange of sexual favors for employment benefits) and hostile work environment (when sexual harassment is so extreme that it is abusive or interferes with someone being able to do their job). 

People who work hard and take professional risks are often rewarded with commensurately high incomes. While this can be a major personal boon, when it comes to divorce, having a significant income or high net worth can create complications. One of the most complicated areas of divorce for high-net-worth individuals and families is that of alimony (known technically as “spousal maintenance” in Illinois). Cases involving alimony for separated high-net-worth couples can be complex and difficult to predict, leading to frustration for both spouses. Understanding the law in this regard is essential for setting realistic expectations and negotiating for fair alimony payments. 

Alimony and High Net Worth Divorce

High net worth divorces are generally regarded as those involving over one million dollars in liquid assets, but as long as a couple makes a combined income of less than $500,000, the length and amount of alimony is calculated according to a formula. The formula uses the length of the marriage to determine the length of payments. To determine the amount of payments, the formula subtracts 25 percent of the net income of the spouse who earns less from 33.3 percent of the net income of the spouse who earns more. 

However, in cases where a couple’s combined income exceeds $500,000, couples or judges can deviate from the standard formula. In a perfect world, spouses would always be able to come together and negotiate a total financial separation package that includes agreements about property division, alimony, child support, and other smaller details like insurance coverage. But this is not always possible and when a couple cannot reach a financial settlement on their own and the court intervenes, it can be difficult to anticipate the amount and duration of alimony a judge will order. They will look at several facts before reaching a decision. These include: 

Research suggests that few life events are as disruptive as divorce, especially when it happens unexpectedly. However, being prepared for divorce - anticipating its beginning and understanding what you can do to help yourself through the process - can make a major difference in terms of how much stress you feel. If you are considering divorce or suspect your spouse may be getting ready to file for divorce, here are five steps you can take to minimize the negative impacts of a divorce on your life. 

Understand Your Financial Situation

Many couples have an implicit or explicit arrangement in which one spouse manages the family’s financial affairs. If you are not the spouse who takes care of the money, do everything you can to learn about the specifics of your family’s financial situation. Find out where your bank accounts are located and what the balances are, how much money you owe on your mortgage, car payments, and other loans, and how much you have saved for retirement. Gathering documentation that proves these things is important as well. 

Consider Where You Will Live

Do you already have a sense of whether you or your spouse will stay in the marital home? If you are going to be the one moving out, where will you go - and how will you afford to stay there? If you may need to spend some time with a family member or friend, try to have a plan for how long your stay will be, how you can help out while you are there, and what you will need to do to get into your own place.