Calabrese Associates, P.C.

Call Us630-393-3111

4200 Cantera Drive, Suite 200 | Warrenville, IL 60555

Subscribe to this list via RSS Blog posts tagged in Naperville divorce attorney

DuPage County divorce attorneyEven if you and your spouse own significant assets, you may experience financial difficulties after your divorce. This can occur because of large costs during the divorce process, due to wasting or dissipation of assets by one spouse, or because you have trouble covering your ongoing expenses on a single income. The situation can become even worse if the IRS informs you that you owe money based on tax returns that were filed while you were married. Fortunately, you may have options for addressing this issue and ensuring that you will not be penalized for your spouse’s actions.

Understanding Post-Divorce Tax Debts and Innocent Spouse Relief

Both you and your ex-spouse are responsible for taxes on any joint tax returns you filed while you were married. This means that if the IRS decides to audit you based on any of these tax returns and it determines that taxes are owed, it can take action to collect the amount owed from both you and your spouse. Even if your divorce decree states that your spouse will be solely responsible for these tax debts, the IRS can disregard the court’s orders in these matters and collect money from both of you.

However, if errors on your tax returns were the sole fault of your ex, you may be able to avoid liability through innocent spouse relief. To qualify for relief, you will need to show that any underpayment of taxes occurred because of errors made by your ex-spouse on a joint tax return. At the time you signed the tax return, you must not have known or have had any reason to know about these errors. If the IRS determines that the tax debts are the fault of your ex-spouse and that it would be unfair to hold you responsible for these errors, you will not be required to pay these debts.

...

Naperville IL divorce business assets attorneyIn most situations, the divorce process will involve multiple different financial issues that will need to be addressed. When determining how to divide marital property, spouses will need to consider their physical belongings, financial accounts, real estate property, retirement savings and benefits, and debts. Business interests owned by spouses, either together or separately, will be a major factor in these considerations, especially for those who own professional practices. For doctors, dentists, therapists, chiropractors, accountants, or other professionals, a business will not only represent a significant investment of time, money, and effort, but it may also be a primary source of income. Because of this, professionals will usually want to determine how they can continue owning and operating their practice after their divorce is complete.

Addressing Ownership of Professional Practices

Family-owned businesses are treated the same as other types of property, and a professional practice that was founded during a couple’s marriage will be considered a marital asset, while a practice that was owned by one spouse before getting married will usually be considered non-marital property. However, in situations where a spouse contributed money or work that helped a business owned by the other spouse grow or increase in value, the spouse who owns the business may be required to reimburse the other spouse for their contributions.

During the divorce process, a business valuation will need to be performed to determine the full monetary value of a professional practice. Different approaches may be taken during this valuation, including looking at the business’s assets and liabilities, the amount that could be received if the business was sold, or the business’s projected earnings over the next several years. Personal goodwill is another factor that may need to be considered when addressing professional practices. For example, a doctor may have built up a good reputation among their patients, and the value of their practice may be based on their ability to continue to provide medical care to clients.

...

DuPage County divorce lawyersWhen spouses age 50 and older get divorced after decades of marriage, this is commonly known as gray divorce. People going through a gray divorce may have different concerns and priorities than younger divorcees have. One such area is spousal maintenance, in which someone who relied on their spouse’s income during the marriage will continue to receive financial support. Spousal maintenance is not mandatory but is often part of a gray divorce. The maintenance recipient may also be more dependent upon the monthly payments than younger divorcees. 

There are three main reasons why spousal maintenance in a gray divorce is different:

Length of the Marriage

Assuming that it was not a recent marriage, couples in a gray divorce have likely been married for decades. The number of years that you were married is how Illinois calculates how long the maintenance payments should last following the divorce. When spouses have been married for 20 years or more, courts will often award “permanent maintenance.” Maintenance without an end-date is a major factor in the long-term cost of the payments.

...
Back to Top