Posted on June 10,2019 in Family Law

These days, more and more unmarried couples choose to live together instead of or before getting married. Consequently, they often buy property such as a house or a car together. However, unmarried couples do not fall under the same property division laws as married couples in Illinois. In order to protect both parties’ interests and assets in case of a breakup or death, it is important to have a formal agreement in place before buying property together. Often known as a cohabitation agreement, this type of arrangement is similar to a prenuptial agreement. When creating this type of agreement, an experienced family law attorney can ensure that all legal issues are addressed correctly.  

If a couple is not married, it can be easier to break up and “go their own way,” since they do not have to go through the legal proceedings involved with a divorce. However, the question of who gets what property in the separation can be a difficult and sometimes contentious decision. If only one name is on the mortgage or car loan, that person is solely responsible for the financial obligations that come with those types of loans, and they will typically remain the sole owner of that property, even if both parties participate in making loan payments. If two names are on a loan or title, both people are held accountable, and the couple may also need to decide between themselves how ownership will be handled when dividing any assets or property.

Continue Reading ››

 Posted on May 02,2019 in Business Law

On Jan. 1, 2018, Section 199A was inserted into the Internal Revenue Service tax code as part of the Tax Cuts and Jobs Act. As stated in the code, Sec. 199A says sole proprietors, business partnerships, S corporations, and many trusts and estates could be eligible for a qualified business income (QBI) deduction. This lets qualifying taxpayers deduct a maximum of 20 percent of their QBI, in addition to 20 percent of qualified publicly traded partnership (PTP) income and real estate investment trust (REIT) dividends.

When the new law was announced, uncertainty remained as to what kinds of businesses would qualify for the deduction and the scope of its limitations. In January of this year, the IRS issued Publication 535, in which Chapter 12 addresses the QBI deduction. 

Continue Reading ››

 Posted on January 30,2019 in Business Law

In mid-2017, a 112-page bill from the Illinois General Assembly significantly altered the Illinois Limited Liability Company Act. Its purpose was to align Illinois law with the Revised Uniform Limited Liability Company Act adhered to in most states. In addition to affecting the formation of future companies, the law also applied to LLCs already in existence. Changes that significantly impacted Illinois business entities and individuals starting a new company include:

Clarification of Procedures for Records Inspection and Copying

If an LLC member wishes to assess the business’ transactions and financial status, the company must provide the necessary records within 10 days of the request, unless it is understood the individual already knows the information contained therein. Disassociated members also maintain these rights, and any denial of access must be made in writing by the company.

Continue Reading ››

 Posted on January 16,2019 in Divorce

The new year typically brings alterations to existing federal and state laws, and 2019 is no exception. This year’s updates include a change to federal tax laws that will significantly impact both parties involved in divorce, while one change to state laws adds a provision designed to reduce injuries in car accidents.

Spousal Support Tax Changes 

A substantial change in U.S. tax law that went into effect on January 1, 2019 spawned an increased push to finalize divorces before the new year. To help defray the cost of the 2017 tax reform bill, spousal maintenance (formerly called alimony in Illinois) is no longer tax-deductible for former spouses who make payments. Also, maintenance recipients will no longer claim those payments as taxable income. This change applies to couples who finalize their divorce after December 31, 2018.

Continue Reading ››

 Posted on October 22,2018 in Estate Planning

The federal government recently passed the Tax Cuts and Jobs Act (TCJA), which has ushered in major changes to tax laws that will affect nearly every business and individual taxpayer. It is critical to understand these sweeping changes so that you can anticipate your tax burden each year.

According to the Tax Policy Center, under the TCJA, approximately 67% of taxpayers will owe less taxes, 25% will have no change in their taxes, and 7% percent will owe more taxes. However, this may not mean that taxpayers will receive a refund next April.

For most, whether a refund is issued depends on how much tax one pays through income withholding. Experts predict that because the government has reduced the withholding amounts to reflect the reduced taxes, between one third and one half of taxpayers may have a balance due with their next tax return.

Continue Reading ››

 Posted on October 11,2018 in Divorce

Going from married to divorced radically changes one’s finances. Instead of splitting bills with a partner, you now have to pay expenses on a single income. In addition to this, your taxes will likely change in several ways. In most cases, you can anticipate how your taxes will be affected by divorce, allowing you to alter your tax strategy accordingly.

Updating Income Tax Withholding

One area of your taxes you should review is whether you are withholding the right amount of taxes from your paycheck. Typically, married taxpayers who file together are taxed at a lower rate, and they may be able to claim certain deductions to reduce their tax burden.

When someone is no longer married, his or her tax liability will likely go up. If you do not change the amount withheld from your paycheck, you could face a large tax bill when filing your next tax return.

Continue Reading ››

 Posted on September 24,2018 in Real Estate

Thinking of investing in real estate? Investment deals can be complex, and those not familiar with real estate terminology or the banking industry can be taken advantage of. There are many scams surrounding real estate investing, and one type of scam that seems to be common in the Kane County area is the opportunity to join a real estate investment club.

Generally, this scam operates by asking that investors pool their money to buy properties that will be renovated or rented. Investors who may be priced out of investing in real estate on their own are promised large sums of money in return once the property has been sold.

To be fair, real estate investment clubs can be legitimate. However, some clubs make untrue and inaccurate representations about how the club is structured, what loans may be involved, and what the probable returns will be on these investments.

Continue Reading ››

 Posted on August 31,2018 in Divorce

For many couples, spousal maintenance is an important issue to address during divorce. Alimony payments can help a lower-earning spouse maintain a standard of living similar to what they enjoyed while they were married, and they will also have a major impact on the finances of a higher-earning spouse. However, divorcing couples should be aware that there are significant changes in store for divorces which are finalized on or after January 1, 2019. On that date, both federal and state laws will be going into effect that will change the way courts award spousal maintenance and how alimony is treated for tax purposes.

Changes to Federal Law

At the federal level, alimony will no longer be tax deductible for the paying spouse. For the spouse receiving spousal maintenance, the new law does not require that spousal support be claimed as income. Experts generally agree that this will likely have the effect of smaller spousal maintenance payments, since more of the paying spouse’s income will go toward paying taxes.

Continue Reading ››

 Posted on July 25,2018 in Car Accidents

Everyone who uses the road has a duty to protect the safety of others. Unfortunately, many drivers neglect this duty and fail to drive as safely as possible. One of the most common ways that drivers endanger themselves and others is by not paying full attention to the road. Distracted driving can lead to car accidents that result in serious injuries and death, and those who are injured by a distracted driver should be sure to understand their options for pursuing compensation for their damages.

The Dangers Posed By Distracted Driving

Driving is such a commonplace activity that many people divide their attention between the road and a variety of other concerns. While multi-tasking may seem to be an effective strategy in many areas of one’s life, driving is not one of them. Drivers should keep their complete attention on the road, since even momentary distractions can have deadly results. In fact, more than 420,000 injuries and 3,100 fatalities occur in the United States every year as the result of distracted driving. 

Continue Reading ››

 Posted on July 23,2018 in Divorce

If you are an Illinois parent going through a divorce, your divorce decree will include a parenting plan that specifies how parental responsibility (also known as decision making) and parenting time (also known as custody and visitation) will be allocated between you and your ex-spouse. 

This is an important document that will play a major part in determining how you will interact with your former spouse and your child for years to come. Therefore, it is critical to think through this document and to be as comprehensive as possible. It is also important to make the terms flexible. This plan must be able to grow with your family for years to come. 

The Importance of a Parenting Plan

Continue Reading ››