Before the introduction of no-fault divorce, spouses wishing to get divorced in the United States had to prove that one spouse was responsible for the breakdown of the marriage. Usually, this involved proving infidelity, abandonment, abuse, or another similar issue. Known as “showing fault,” this process could be lengthy, difficult, and expensive. Spouses accused of fault-based action could try to defend themselves, which could further complicate the process. Even when spouses both wanted a divorce, they often had to agree to demonstrate “fault” through a fabricated story. 

Around 50 years ago, no-fault divorce entered the American judicial system. While some states still allow spouses to prove fault and receive certain benefits from the divorce as a result, other states - including Illinois - no longer allow spouses to prove fault at all. Instead, spouses may only cite “irreconcilable differences” as the reason for divorce. This may be frustrating for some spouses who feel as though their partner’s actions have clearly led to the breakdown of a marriage. If you are in this situation, it is important to know what you have to do to prove the relationship has ended and to have experienced legal representation from an Illinois divorce attorney. 

Irreconcilable Differences in Illinois Divorce

Spouses who claim they have irreconcilable differences are essentially saying that their marriage has broken down beyond the point of repair. It does not matter why. Although certain behaviors, like abuse or intentionally wasting money after the breakdown of the marriage, can result in one spouse getting more of the marital estate or sole custody of a couple’s children, Illinois judges cannot consider “fault” when making decisions about a divorce. 

Continue Reading...

Divorcing couples frequently experience conflict over how to divide their marital estate. They may disagree over what should be considered marital versus personal property, as well as what constitutes an “equitable” division as required under Illinois law. 

Complex assets can further complicate this already challenging area. One type of asset - intellectual property - can be difficult to value and even more difficult to divide. If you are getting a divorce in Illinois and either you or your spouse owns intellectual property, such as original books, music, artwork, copyrights, etc., contact an experienced Illinois asset division attorney who can help. 

Is Intellectual Property Marital Property? 

While the spouse who created the intellectual property may very much feel like the rightful owner of their own creative output, under the law, anything of monetary value earned or generated by either spouse during the marriage is generally seen as a marital asset. In that sense, intellectual property is marital property - as long as it was created during the marriage. 

Continue Reading...

Private equity partners, venture capitalists, and hedge fund managers and employees deal with intricately detailed financial transactions every day. These employees are typically very well compensated for their skills and knowledge, and their divorces can end up being more complicated than a typical divorce by orders of magnitude. 

Just one of the areas of compensation that may need to be handled in such a divorce is carried interest. Carried interest is a complex area of finance that usually needs to be viewed as part of a spouse’s overall income. Its involvement in divorce often makes necessary the help of financial experts and accountants in asset division negotiations. 

What is Carried Interest? 

Carried interest is compensation paid to general partners of private equity, venture capital, and hedge funds and is tied to a fund’s performance. It is a share of profits and is usually only paid if the fund performs at a specific minimum rate; it can therefore take many years to earn and may be paid out at once or as part of an ongoing return. Because general partners have usually invested in a fund, carried interest is taxed similarly to a return on investment rather than regular income. General partners may also charge a management fee, which is paid in addition to carried interest but without the performance conditions. 

Continue Reading...

Some couples want to separate from each other but know for sure they do not want to get divorced. Other times, couples are unsure whether their separation will be permanent but may know that their marriage cannot succeed if they continue living together as-is. Whatever the reasons may be, a legal separation might be a better alternative for some couples than a permanent divorce. If you and your spouse are considering going your separate ways, it is important to talk to an Illinois family law attorney who can help you make the best decision for you. 

Why Get a Legal Separation Instead of a Divorce? 

Many people are surprised to learn that a legal separation is closer to a light version of divorce than it is to moving out and taking some space. Legal separation is a formal legal process that allows a couple to resolve issues of finances, child support, and child custody without actually ending a marriage. 

Because legal separation entails doing much of the same work as divorce, many couples simply decide to go through with divorce rather than having to do the whole process all over again if they eventually do decide to get divorced. For other couples, however, there are legitimate reasons to permanently separate without dissolving the relationship. These include: 

Continue Reading...

The vast majority of married couples know that differences in financial decision-making have the potential to be a source of conflict. Even when financial differences are not the main source of conflict in a relationship, divorce is well known for the devastating impact it can have on both spouses’ finances as they transition to life beyond marriage. 

For all couples, and perhaps especially high-net-worth couples, managing finances responsibly during divorce is of utmost importance. Although assets will need to be divided, they can still be managed in a way that allows couples to maximize their portfolio’s potential before, during, and after asset division. For couples who are divorcing in their later years, when retirement is approaching or is already a reality, careful financial management is even more important. Here are five tips for staying in control of your investments during a divorce. 

Ensure You Are Aware of Your Entire Financial Picture

Spouses often divide household responsibilities, with one spouse being primarily in charge of finances. If this is the case in your family, while you may have a general picture of your assets, it is essential to get to know your portfolio in great detail. Make sure you have access to your accounts, including user names and passwords, so you can keep track of balances and performance. If you do not know whether your accounts are held jointly or separately, find out.

Continue Reading...