Let's Talk About Divorce Planning

Divorce Planning starts with Goal Setting. It may seem wacky to ask yourself what you want life to look like when the divorce is all said and done, but that is the best way to have a successful divorce. You need to think about and set goals like: what you want regular parenting time to look like,  holiday parenting time, where you want to live, and how you anticipate being able to afford to pay your regular expenses. 

There is no default parenting time arrangement in Illinois, so it is imperative to put thought into what schedule makes sense for you and your family because that is what will enable you to ask for the schedule that you want to achieve.

Identify what your bottom line is financially after the divorce, the cost of what you need, and also think about the costs of what you want. Think of this as your imaginary budget. Your post-divorce income may be supplemented by child support or spousal support/maintenance, which is controlled by statute. 

After you have set your divorce goals, you will need to adjust your behaviors accordingly, in order to bring you closer to those goals. Start to move towards to schedule you want if it is different from what you have currently. If your ideal schedule involves you being responsible for taking your children to activities or appointments, start taking on those responsibilities. Become (more) involved with teachers and coaches, so there is no question that you, or both parties, are involved parents. If your ideal parenting schedule would require a change in your work schedule, start to implement those changes now, in the preparation stage if you can. 

You may try to manipulate your gross income in advance of a divorce, but this is at your own risk. If you are voluntarily underemployed or reducing your income, the Court can use that against you in your divorce and make calculations based on your prior, higher income. This is called imputed income. 

You will also need to gather documents in preparation for your divorce, and during it, if you are not able to reach an agreement on the division of assets with your spouse. I often hear that clients are overwhelmed based on the number of documents that need to be gathered and strongly encourage clients to start on gathering documents as soon as possible. 

If you and your spouse cannot agree, the Court will need to decide whether assets are marital or nonmarital. The default rule is that assets acquired during a marriage are marital and therefore subject to an equitable division in the divorce. If you have assets that you believe are nonmarital, that should be awarded 100% to you, gathering documents is one of the most important things you will do in your divorce. To prove that assets are nonmarital, you will need to provide documents showing that the asset was purchased prior to the date of your marriage, or that it was acquired by gift or inheritance. This is especially common with retirement accounts that have been transferred and rolled over during the marriage. It is your burden to prove that any part of your retirement account is nonmarital and it can be difficult to find documentation of the asset’s acquisition date if you have been married for a great number of years but it is crucial. 

You will also need to prove your income, or your spouse’s income, which is much easier in most situations as most people are W-2 or 1099 employees that receive regular paystubs. In instances where spouses earn cash, evidence of cashflow and receipts for expenses would be helpful in showing historical spending, and oftentimes bank account statements and monthly expenses prove that someone is earning more than they are showing on paper. 

As far as expenses of your own, if your expenses are not properly documented, either party can be charged with dissipation of assets. Dissipation means the use of marital funds for a nonmarital purpose (typically thought of as gambling, adultery, and/or drugs) and if a party is charged with dissipation, they must provide accurate expense records to show that the funds were not used for such a purpose. 

The last area of preparation to consider is when to file. Timing matters because it impacts things like spousal support, whether the receipt of a bonus is subject to equitable division, whether real estate is marital, and whether something will qualify as dissipation.

If you're ready to talk about divorce planning so you can make educated and strategic decisions, contact my office to schedule your free 15 minute consultation today.