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6 things you should do if you are considering a divorce.

Posted in mcooper on October 6, 2018 at 10:6:07
Categories: Divorce    

1. Identify all of your assets and liabilities.
2. Make copies of statements for all of your financial accounts, assets, debts, income tax returns, etc.
3. Check your credit report. You can obtain your free report here https://www.usa.gov/credit-reports. 
4. Seek counseling, couples or individual. Divorce is an emotional and stressful process.
5. If children are involved, discuss with your spouse how they will be told about the divorce.
6. Contact an attorney who can answer your questions and explain the legal and procedural aspects. 

Options in Divorce

Posted in mcooper on February 28, 2018 at 17:28:37
Categories: Divorce  

To many people, Divorce is a daunting word. But like any daunting concept, it helps to break it down into parts to really understand it. This can help clear up confusion and answer questions, and it can also alleviate some of the apprehension toward the process.

The word Divorce is an umbrella term, meaning it arches over smaller types of agreements and settlements that are necessary for two parties to dissolve their marriage. Under this larger umbrella are the parties separating, and depending on which type of agreement one chooses, the supporting cast may vary.

The most basic part of most divorces is a negotiation. Negotiation is used to describe the process by which the terms of a divorce are settled. It is limited to the bare bones of the parties’ interests and what is being represented on each side. Negotiation seeks to remove the emotion from the context of the process, focusing instead on technical interests like money, custody, property, and parenting decisions and time spent by each parent.

Mediation is a process is different than a simple negotiation, as it involves the divorcing parties working with a qualified neutral mediator to assist a couple in reaching a resolution and may occur at any point during a divorce. A mediator may or may not be an attorney. some mediators may be social workers or psychologists. Qualified and certified mediators generally serve as go-betweens for the divorcing parties, who rely on the mediator’s skills to help them reach the best possible outcome. The mediator may navigate between two separate rooms to help parties reach a settlement. At the end of the mediation, both parties will sign off on an agreement. This may occur over several sessions until an agreement is reached. If no agreement is reached, the parties may then go to litigation. Either way, an attorney is in the best position to prepare the final agreements to settle. The attorneys at the Law Office of Miriam Cooper & Associates, LLC., are certified mediators and can navigate the mediation as well as prepare the documentation consistent with the law.

Collaborative Divorce is a type of divorce that addresses both the legal and holistic needs of the divorcing parties. This type of divorce allows the parties to settle their proceedings without going to court. During Collaborative Divorce, a Collaborative Lawyer, sometimes called a Collaborative Law Fellow, facilitates the separation and negotiation process. This may occur in conjunction with other specialists, such as neutral Financial Specialists, Child Specialists and Divorce Coaches. The separating parties first sign an agreement to proceed amicably to reach the best possible outcome for both sides. The cooperative nature of a Collaborative Divorce allows for an amicable, supportive environment. The couple is assisted by the lawyer and specialists in a series of meetings—which take less time than court proceedings—and is spared from having to negotiate or litigate in court. Overall, the parties have greater control of the process, and the outcome is more favorable.

The attorneys at the Law Office of Miriam Cooper & Associates, LLC. are versed in all forms and parts of the divorce process. Whichever type of agreement clients seek, the attorneys will provide comprehensive expertise tailored to the client’s specific needs. The attorneys at the Law Office of Miriam Cooper & Associates understand the intimidating nature of entering a divorce and offer quality, customized representation to address our clients’ unique processes.

by Miriam Cooper

The Claws Are Coming Out Over The Fight For Pets In Illinois

Posted in mcooper on February 21, 2018 at 22:21:19
Categories: Divorce

As we kick off the beginning of 2018, so does a new law in Illinois that will now take the well-being of pets into consideration in divorce proceedings. While once treated like property, this new law will now treat pets more like children. So, what does this new law mean for pet owners in Illinois?

It’s time to start pampering your pets. Effective as of January 1, 2018, pursuant to Section 750 ILCS 5/503(n) of the Illinois Marriage and Dissolution of Marriage Act (“IMDMA”), the courts will now allow either party in a divorce proceeding to petition for sole or joint possession of and responsibility for his or her companion animal. Judges will now be required to take into consideration the well-being of all companion animals in divorce proceedings.

Under this new law, courts will do their best to determine which spouse is the primary caretaker of the pet. In doing so, the court may look at which spouse feeds the pet, walks the pet, takes the pet to its veterinary appointments, and which spouse makes arrangements for the pet when traveling out of town. Thus, if you are fighting for the court to award you possession and responsibility of your pet in your divorce proceeding, it may be a good idea to start noting all the wonderful gestures you do for your pet on a daily basis. This will put you in a better position to obtain ownership or possession of your companion animal in your divorce proceeding.

While this new law no longer treats pets as property and rather seems to really appreciate the unique value of companion animals, one question still looms. Will the courts consider your animal a “companion animal?”

The IMDMA is vague as to what animals courts will define as “companion animals.” Under the statute, “companion animal” means an animal that is commonly considered to be, or is considered by the owner to be, a pet. “Companion animal” includes, but is not limited to, canines, felines, and equines. 510 ILCS 70/2.01a. While it may be clear that a dog or cat will be considered a “companion animal,” what about a teacup pig, or pet rattlesnake? How far will the courts go in interpreting the definition of a “companion animal?”

Only time will tell, but it is clear that 2018 will be one for the pets.

by Alysa Feld

Paying Child Support for an Adult Disabled Child

Posted in mcooper on December 27, 2017 at 21:27:36
Categories: Uncategorized

Paying Child Support for an Adult Disabled Child

People often think child support terminates once their child turns 18 and graduates from high
school. For parents who have a child with a disability, this is not always the case.

Section 513.5 of the Illinois Marriage and Dissolution of Marriage Act (“IMDMA”) allows a court
to order either or both parents to pay child support for an adult child who is mentally or
physically disabled. The IMDMA defines a “disability” as a “mental or physical impairment that
substantially limits a major life activity,” but fails to specify what exactly it means for a major life
activity to be substantially limited. Although not specified in the statute, courts have looked at a
person’s ability to care for oneself, including but not limited to seeking and maintaining
employment, when determining whether an adult child is disabled for purposes of ordering
support. Additionally, Illinois courts consider whether or not the child can live on his/her own; is
capable of supporting his/herself; whether the child completed high school or is attending a
college or trade school; and whether the child is eligible to receive benefits or aid from the
federal or state government, such as social security disability benefits.

Parents should take into account the effect a child support award can have on federal and/or
state benefits such as social security disability benefits, which can be reduced. Professionals
experienced in this area of law should be consulted before a court order is entered requiring
either of the parents to contribute to the expenses of a non-minor child with a disability.
Additionally, parents must be aware of the timing of when they seek a support award. The
statute provides that the disability must have arisen while the child was eligible for support as a
minor, and a court cannot order a parent to be responsible for expenses incurred prior to a
petition/motion being filed. Therefore, a parent supporting an adult disabled child will want to file
a petition or motion as soon as possible to ensure the other parent will be obligated to contribute
to the expenses sooner rather than later.

Courts will look at each parent’s financial ability to contribute to the expenses of the child when
making such awards; this includes each parent’s current and future financial resources as well
their own financial needs. Unlike child support for minor children, courts do not apply set
guidelines. Rather, the totality of the circumstances must be assessed to determine what
expenses the child has and what expenses both parents can afford.

Although a court may order parents to contribute to their adult disabled child’s expenses, a court
cannot award a parent parenting time or visitation with the child. Once a child reaches the age
of majority, courts lose authority to decide issues regarding parenting time and visitation.

Divorce and child support issues are often tricky on their own; adding in the complexity of
support for an adult disabled child muddies the issues even more. Parents dealing with these
issues should seek advice from a qualified attorney.

by Brandy Wisher

Moving Forward after a Divorce, Spousal Support in Illinois

Posted in mcooper on November 15, 2017 at 23:15:21
Categories: Divorce  

Considering a divorce but unsure how you will be able to support yourself? Curious about your
obligation to support your ex-spouse who has been out of the workforce during the entirety of
your marriage?

When one spouse passes on opportunities to develop his/her career in order to stay home and
provide care-taking functions for the family and/or to help foster the other spouse’s professional
development, of course, that spouse’s income-earning capabilities will be stifled. After a lengthy
marriage, and a long period of time out of the workforce, the thought of having to now support
oneself can be debilitating.

The Illinois Marriage and Dissolution of Marriage Act gives courts the authority to award
maintenance, otherwise known as spousal support and commonly referred to as alimony, in
divorce proceedings.

There are generally four types of maintenance a court can award, or parties can agree to, in a
divorce case: (1) permanent maintenance (which does not necessarily mean permanent, as
addressed below), (2) temporary or rehabilitative maintenance for a set duration, (3) temporary
or rehabilitative maintenance with a review date (also known as reviewable maintenance);
and/or (4) maintenance in gross, which is a lump sum payment.

Whether or not one spouse is entitled to an award of maintenance is largely based on the
circumstances and specific facts of each individual case. The statute lists a number of factors
that are to be considered when making this determination, including such things as how much
income each party is earning, how the assets and debts will be divided, the needs of each party,
the standard of living the parties enjoyed during their marriage, the length of the marriage, and
the contributions the parties have made towards the marriage and towards each other’s
education, training or career.

Once it has been determined that one spouse is entitled to receive support from the other, there
are guidelines and a specific formula that are applied in most cases to determine what the
support amount should be and for how long the support should be paid. The guidelines are laid
out in Section 504(b-1) of the Illinois Marriage and Dissolution of Marriage Act. The amount is
based on the parties’ gross income and is calculated by subtracting 20% of the income of
spouse receiving maintenance from 30% of the income of the spouse paying maintenance.
However, there is a cap; the spouse receiving maintenance cannot receive more than 40% of
the parties’ combined gross income when the maintenance amount is added to his/her own
gross income. The duration of the maintenance obligation will depend on the length of the
marriage, and upon which of the above four types of maintenance is being awarded.

Unless the parties agree otherwise, maintenance is always modifiable, including permanent
maintenance, as to amount and duration, upon a showing of a substantial change in
circumstances. This could include a substantial change in either party’s income or any other fact
that may effect one’s ability to support oneself or one’s ability to support the other party.

The specific facts of each case have to be assessed to determine whether and how the statute,
the factors, and the guidelines should be applied.

Credit Cards and Divorce

Posted in mcooper on October 2, 2017 at 15:2:59
Categories: Divorce   

“Marital property” that is subject to be divided between two spouses in a divorce pursuant to the Illinois Marriage and Dissolution of Marriage Act has a broad definition, and in addition to all of the property and assets two parties own, that definition includes debts and other obligations. The parties’ marital debts and obligations will have to be equitably apportioned, which does not necessarily mean a 50/50 split, upon the dissolution of marriage, regardless of whether the debt is jointly titled or individually titled.

If the debt or obligation was incurred prior to the marriage, it is likely that debt will be allocated to the party responsible for incurring the debt. Typically, student loans also stay with the spouse whose education was funded with the loans.

When deciding how to apportion debts that were incurred during the marriage, courts typically assess the overall financial distribution of the marital estate; whichever party has the greater ability to pay; whether the debt is associated to a piece of property (usually, debts incurred to purchase property are assigned to the spouse who is awarded the specific piece of property, i.e. the loan on a vehicle); whether both parties had knowledge and approved of the undertaking of the debt; and any other relevant factors.

The debt incurred while a divorce is pending is presumed to be marital as well. However, one spouse cannot just go rack up thousands of dollars of debt and expect a court to order the other spouse to contribute to the debt if the debt is outside the scope of general living expenses that are expected to be incurred. In any event, parties should regularly check their credit reports to monitor whether lines of credit are being opened in their names. The three credit bureaus, Experian, TransUnion, and Equifax provide one free report each year; the reports can be requested and generated online at https://www.annualcreditreport.com/requestReport/landingPage.action. Additional information regarding monitoring one’s credit can be found on the USA.gov website, https://www.usa.gov/credit-reports.

Not only will monitoring credit reports protect one’s financial stability and alert a party of any fraudulent activity, but it will also keep parties aware of whether or not his/her spouse is running up debt prior to and during the divorce process. Adequate knowledge of the marital debts and obligations is necessary in order for parties to knowingly enter into settlement agreements. Although there are terms and provisions that can be included in agreements to combat the hidden or concealed debt that pops up five years after a divorce, the negative effects it can have on a person’s credit during the process of trying to ensure that the appropriate person is held responsible are sometimes irreparable.

Another issue that might not be the first thing a person thinks about when getting a divorce is the rewards and perks associated with the marital credit cards, including frequent flier miles. Parties should be aware that these benefits are considered assets that are also subject to distribution upon divorce. However, since these rewards are not likely to be transferrable by the credit card companies, values should be assigned to the rewards and the remaining property distribution offset by other assets or property. Although this may seem like a minor issue to be disregarded, significant rewards can be accumulated over the course of a marriage, and the value should be considered in the overall allocation of marital assets and debts.

The impact of credit card debt and the perks associated with credit cards could be substantial depending on the facts. Parties need to have an understanding of their complete financial situation prior to and throughout the divorce process.

by Brandy Wisher

Considerations when Dividing Retirement Assets

Posted in mcooper on August 17, 2017 at 15:17:01
Categories: Divorce   

Many different vehicles exist for those considering saving for retirement — individually or
offered through employment, including, but not limited to, individual retirement accounts, profit
sharing plans, 401(k) plans, 403(b) plans, employee stock ownership plans, defined benefit
pension plans, etc. Typically, when a person begins saving for retirement, the thought of the
possibility of a divorce at some point in the distant future is not at the forefront of most peoples’
minds. Likewise, one’s retirement plan is not the most pressing concern when he or she is
planning a wedding and getting married.

As retirement plans are often the largest assets people own other than their home, parties must
proceed with caution when negotiating their interests with respect to their retirement plans and
benefits.

A basic tenet in Illinois divorce law is that all property acquired during a marriage is presumed to
be marital; therefore, it is well-accepted that increases in vested pension benefits and
contributions to a retirement plan during a marriage, are typically considered marital property. If
a party’s interest in the retirement plan or pension benefits did not accrue until after the marriage,
the analysis is simple — the vested balance and/or benefits will all be presumed marital and
subject to division upon divorce or legal separation.

Alternatively, if the retirement plan was started prior to the marriage, or if the party’s interest in
the pension benefit began accruing prior to the marriage, the analysis becomes a bit more
complicated. It will be necessary for the parties to know the percentage of the value/benefits
which is marital and the percentage which is non-marital so that parties can knowingly negotiate
a property settlement, whether it be a division of the retirement plan or by reaching an agreement
to off-set the a portion of the retirement plan with other property.

Briefly, retirement plans are separated into qualified and non-qualified plans for income tax
purposes. Qualified plans are funded with pre-tax money, and participants receive a tax
deduction upfront; however, taxes will have to be paid on all distributions. Qualified plans
include defined contribution plans, such as 401(k) plans, 403(b) plans, thrift savings plans, profit
sharing plans, and simplified employee pensions; and defined pension benefit plans, such as
pensions received through a union or through government employment. Non-qualified plans are
funded with after-tax dollars, and include but are not limited to individual retirement accounts,
such as mutual funds, money market accounts, and annuities.

For defined contribution plans and non-qualified retirement plans, it is important for parties to
retain statements of account balances as of the date of the marriage, as this will be the starting
point of the analysis. Thereafter, new contributions will be considered marital. However, the
increase or decrease in value to the plan by way of investment transactions or other activity
within the plan should be allocated appropriately to the marital and non-marital portions of the
plan.

Determining the marital portion of defined pension benefits is most commonly done by dividing
the time of plan service while married by the time of all plan service to date. For example, if the parties are married for 10 years and the pension has been accruing for 15 years, the formula
would be 10 divided by 15 or more commonly, 120 months divided by 180 months. This
fraction would then be multiplied by the present value of the pension.

In addition to determining the marital portion of a retirement plan, the parties will need to
understand how the division will actually be implemented. For defined benefit pension plans
and defined contribution plans, the division will most likely be pursuant to a Qualified Domestic
Relations Order, which will most often be approved by a plan administrator prior to the divorce
and will ensure that the parties avoid the penalties and taxes associated with early withdrawal.

However, if the division of property is not enough to adequately sustain a party prior to
retirement, and that party is considering taking a withdrawal prior to him or her reaching the
minimum retirement age, the penalties and taxes should be considered at the time of the divorce.

On the other hand, non-qualified plans are, most commonly, divided either through rollovers or
by way of a distribution, which comes with penalties and tax implications that should be
considered when negotiating a settlement. The parties will need to address whether both parties
will be responsible for the penalties and taxes prior to the divorce being finalized.

Many minute details go into negotiating a marital settlement agreement and dividing property in
a divorce. And although a complex, and often daunting, aspect of the agreement, parties should
be fully aware of their interests, both marital and non-marital, and the benefits and liabilities
associated with those interests, in any retirement plan before agreeing to a settlement.

by Brandy Wisher

Child Support Changes July 1, 2017 – “Income Shares Model”

Posted in mcooper on July 5, 2017 at 21:5:29
Categories: Support Modification    

Child Support Calculations Change as of July 1, 2017 — What to Expect with the “Income Shares Model”?

As many people know, child support in Illinois has been based on a percentage of the obligor parent’s (the person paying the support) properly calculated net income, either 20%, 28%, 32%, 40%, 45%, or 50%, depending on how many children are covered by the support.

But, the Illinois legislature has jumped on the bandwagon and decided to adopt an “income shares” approach to determining a parent’s child support obligation, an approach that is widespread across the United States.

What this means for a parent in Illinois is that his or her child support obligation may no longer solely be based on his or her income but rather a combination of both parties’ incomes. Additionally, each parent will now be responsible for a portion of child support. This does not mean both parties will be exchanging money.

The Department of Health and Family Services (“DHFS”) has released a chart that anticipates the dollar amount for the cost of raising a child, or children, in Illinois based on the combined income of the parents. When calculating child support under the law, one would add each party’s monthly net income and find the appropriate section on the chart. Then the monthly dollar amount the DHFS has determined it takes to support a child(ren) in Illinois, which is based on the incomes of the parties, can be identified, and each party’s respective obligation will be based on his or hers respective income.

For example, let’s say that Mother earns $2,500.00 monthly and Father earns $1,500.00 monthly for a combined monthly income of $4,000.00, and the parties have two children. For illustration purposes only and ease of explanation, let’s say that the chart lists support for two children for a couple earning $4,000.00 a month as $800.00. Since Mother earns 62.5% of the income, she is responsible for $500.00 of the support obligation, and Father, who earns 37.5% of the income, is responsible for $300.00 of the support obligation. Now, this does not mean Mother gives Father $500.00 and Father gives Mother $300.00. The determination of who will be paying the other depends on who the primary residential parent is. If it is Father, Mother will pay Father $500.00 a month in child support, and Father will be responsible for coming up with the other $300.00 it costs to raise the children.

Mathematically, the new law seems just like a new formula. However, there is an additional twist, an additional step in the formula if the parents have relatively equal parenting time, which the statute defines as the non-primary residential parent having the children 40% or more of the time. This translates to 146 overnights. If this is the case, the monthly support obligation as determined by the DHFS chart will be multiplied by 1.5. This is because it is expected that both parents will be providing duplicate items and support in their respective households.

Additionally, each parties’ individual obligation will be reduced by the amount of time the child(ren) are with each respectively.

In the example, let’s say Mother has the children 45% of the time and Father has the children 55% of the time. The $800.00 monthly obligation would now be $1,200.00, with Mother being responsible for $750.00 and Father being responsible for $450.00. But, these obligations would then be reduced by the percentage of parenting time each has, and then offset. Therefore, Mother’s obligation should be reduced by 45% and she would be obligated to pay the Father $412.50 a month, and the Father’s obligation should be reduced by 55% and he would be obligated to pay the Mother $202.50. The Mother’s obligation reduced by $202.50 would then be $210.00 each month.

That all being said, this brief explanation is how the law is anticipated to play out. However, it has not been tested and played through, and there may be other kinks and snags that rear their ugly heads in each individual case. Therefore, if you are currently paying child support, receiving child support, or are considering seeking court ordered support, it is recommended that you contact an attorney who can discuss your case with you and explain the new law and how it should apply to the facts of your situation.

by Brandy Wisher

It’s That Time of Year Again, Seniors Heading off to College. But Wait, Who’s Paying?

Posted in mcooper on June 8, 2017 at 13:8:59
Categories: Divorce     

Child Support Calculations Change as of July 1, 2017 — What to Expect with the “Income Shares Model”?

Most parents wish for their children to do better than themselves, to go to college, to receive a
better education and land that dream job. However, not all parents know how their children’s
college educations will be funded and how much they can and how much they may be obligated
to contribute themselves. Married couples and co-parents will generally have many discussions
regarding this enormous expense and may make decisions about how to save for, and
ultimately fund, their children’s college educations.

But when two parents are in the midst of a divorce, a wrench is thrown into this plan.

What many parents do not know is that Section 513 of the Illinois Marriage and Dissolution of
Marriage Act grants the courts authority to order the parents to be responsible for a portion of
their children’s college expenses. And this obligation may not just be limited to tuition and
school fees, but can include housing expenses (either on campus or off campus), medical
expenses (including insurance premiums), living expenses (food, utilities, transportation), and
the costs of books and school supplies.

Commonly, parents who are made aware of the statute during their divorce may include
provisions in their Marital Settlement Agreement with vague statements that they each will be
responsible for college expenses but do not specify which specific expenses or what percentage
of those expenses each will be responsible for. When their children are still young, this seems
like an easy way to settle this issue when dealing with the myriad of other issues that pop up in
a divorce. However, when junior or senior year of their child’s high school education comes
around, the discussion comes back up and both parents are generally left sitting with the
uncertainty of what exactly his and her obligation may be, and the questions start swirling
around: Who has to maintain the health insurance? Are out-of-pocket expenses still to be split
50/50? How much of that $30,000 a year tuition will I be responsible for? Do I need to co-sign
on a student loan? Should my child be required to contribute too? And the many other expenses
that arise when a child enters college.

Parents should not wait until the eve of their child leaving for school to deal with this, especially
if it was not addressed at all in their Marital Settlement Agreement or Judgment for Dissolution
of Marriage because the statute specifically states that a party can only seek reimbursement for
expenses paid if an obligation existed at the time the expense was incurred.
Parents should also be aware that college expenses are treated as a form of child support and
are subject to all of the rules and remedies that apply to child support. The obligation to
contribute to their children’s college expenses can be enforced through the courts and can
always be modified.

If you are in this situation, it is best to consult a family law attorney who can identify your options
and obligations and provide the necessary legal advice so that you and your children are not
completely shouldered with the hefty expense of a college education without the help of the
other parent.

by Brandy Wisher