Posted on March 29,2018 in Divorce

Last December, Congress passed the Tax Cuts and Jobs Act of 2017, which represented the largest reform of the U.S. Tax Code in the past 30 years. This law made a wide variety of changes which will affect nearly everyone who pays taxes in the United States, and couples who are planning to get end their marriage should be sure to understand how this law will impact their divorce. Here are three areas of the tax law which will affect divorce cases:

1. Spousal maintenance - For divorce agreements executed after December 31, 2018, maintenance (alimony) will no longer be tax deductible for the payor, and maintenance payments will no longer be includable as part of the recipient’s gross income. Divorcing spouses should be sure to understand how this change will affect their maintenance payments, and couples with a prenuptial agreement may need to update their agreement to reflect this change to the law.

   Continue Reading ››

 Posted on March 22,2018 in Business Law

The Tax Cuts and Jobs Act of 2017, which was passed by Congress and signed into law by President Trump last December, made a wide variety of sweeping changes to the United States Tax Code. In addition to reducing the corporate tax rate, the tax reform law implemented some changes which can benefit small business owners, and people should be aware of how they can take advantage of these changes and minimize their tax burden by establishing themselves as a LLC.

Pass-Through Entities and LLCs

One significant change that the Tax Cuts and Jobs Act made was in how pass-through entities are treated. With pass-through businesses, such as sole proprietorships or LLCs, profits are taxed at the owner’s individual tax rate rather than the corporate tax rate. Under the tax reform law, owners of pass-through entities can now deduct 20% of their qualified business income. 

Continue Reading ››

 Posted on March 13,2018 in Divorce

When a couple decides to get divorced, they will be required to significantly reconfigure their lives, separating a shared home and finances into two different households. This can result in a great deal of financial upheaval, and when one spouse earns less than their former partner, they may struggle to make ends meet. In these cases, the lower-earning spouse may be eligible to receive financial support (known as spousal maintenance, spousal support, or alimony) from the higher-earning spouse. However, spouses should be aware of some recent changes to Illinois law related to temporary maintenance awarded during divorce and the total duration of maintenance payments.

Temporary Maintenance As a Credit to the Total Duration of Maintenance

Some changes to Illinois divorce law went into effect on January 1, 2018, and the percentages used to determine the duration that spousal maintenance will be paid are now based on the specific number of years of marriage, for marriages between five and 20 years. However, this duration may be affected by temporary maintenance awarded during divorce.

Continue Reading ››

 Posted on March 05,2018 in Car Accidents

A car accident is a frightening experience, whether it is a minor rear-end collision or a major fender bender. In the immediate aftermath of a crash, people are often shaken up and unsure of how to handle the situation. By following these steps, you can not only ensure that you address the legal issues surrounding your accident, but you will be prepared to seek compensation for the injuries you have suffered:

1. Provide assistance - Drivers should always stop their car and, if possible, pull over to the side of the road after an accident, after which they can assess the damage and exchange information with the other driver(s). In Illinois, drivers involved in an accident are required to provide reasonable assistance to anyone who has been injured, including giving medical aid, calling 911, or transporting them to a medical facility.

   Continue Reading ››

 Posted on February 26,2018 in Divorce

Illinois has a penchant for using a language of its own in matters of child support and spousal support. Just as child custody has been recast as the “allocation of parental responsibility,” permanent maintenance in matters of spousal support (alimony) is now termed “maintenance for an indefinite term.” Importantly, however, with this semantic change comes a new approach to long-term spousal maintenance in Illinois.

Beginning in 2018, Illinois Spousal Support is Less Likely to Be Permanent

“Maintenance for an indefinite term” is less likely to be permanent in nature than “permanent maintenance.” Linguistically, this makes sense, as permanence is synonymous with the word “forever,” while indefiniteness merely speaks to an end point that has yet to be determined. In terms of numbers – which are far more useful than words when it comes to forecasting spousal maintenance in Illinois – the duration of the marriage is a helpful starting point. 

Continue Reading ››

 Posted on February 20,2018 in Divorce

Calculating spousal maintenance (alimony) in Illinois can be somewhat complex. The amount of maintenance payments will be based on the incomes of both spouses, and the duration that these payments will last is based on the length of the marriage. To get an idea of how maintenance is calculated, it is best to consider an example. The below figures, importantly, are reflective of a spousal maintenance calculation for couples whose total income is less than $500,000.

Step 1: Calculate 30% of the Payor’s Income

In this example, the payor’s income is $200,000 per year, the payee’s income is $40,000 per year, and the couple was married for seven years and seven months prior to divorcing. Thus, the total income is $240,000, falling under the $500,000 cap (above which maintenance is determined on a case-by-case basis). The first thing to do is to calculate 30% of the payor’s income; 30% of $200,000 equals $60,000. 

Continue Reading ››

 Posted on February 13,2018 in Divorce

When a couple decides to end their marriage and get divorced, one spouse is often at a financial disadvantage. Whether this is because they have chosen to be a homemaker rather than pursue a career, or simply because they earn a smaller income, they may struggle to make ends meet. In these cases, the law provides them with the ability to receive payments from their former partner which will allow them to maintain a similar standard of living to what they enjoyed while they were married.

In Illinois, the guidelines for determining maintenance (which is also known as spousal support or alimony) are a factor of the parties’ joint income. In matters of maintenance, there is a payor (the person paying out the maintenance) and a payee (the person receiving the maintenance). There is also an important line of demarcation: $500,000. Maintenance award formulas differ, depending on whether the parties’ income is below this figure or not.

Continue Reading ››

 Posted on February 05,2018 in Personal Injury

It is hard to lose a loved one, even if they die from natural causes after having lived a long and meaningful life. When someone’s time is cut short, however, the pain, loss, and grieving is magnified – especially when death has been caused by another’s negligence or intentionally bad conduct. Besides the immense grief and realization that nothing can bring a loved one back, many individuals and families must deal with the stark reality of the loss of support, both financial and emotional, provided by the work, income, and participation in family responsibilities of the lost loved one. When grief is coupled with tenuous financial straits, survivors of the wrongful death of a family member can seek compensation from the person or entity responsible. 

Defining Wrongful Death in Illinois

In general, a wrongful death occurs whenever an individual is killed because of someone’s intentionally wrongful or negligent conduct. More specifically, in the precise legal language of Illinois state law, “whenever the death of a person shall be caused by wrongful act, neglect or default, and the act, neglect or default is such as would, if death had not ensued, have entitled the party injured to maintain an action and recover damages,” the individual or entity (e.g. business or other institution) that caused the death may be held liable in a wrongful death suit in civil court.

Continue Reading ››

 Posted on January 26,2018 in Car Accidents

The legal term “damages” refers to harms and losses that a person suffers because of someone else’s actions or negligence. These adverse effects can occur in a variety of situations, and depending on the nature of the damages suffered, an appropriate “measure” of these damages is ascertained and applied, and the party who has suffered losses can seek compensation for their damages from the person who was responsible. 

Following an automobile accident, damages typically include the losses a person experiences due to personal injuries (including medical bills, lost income, reduced earning capacity, ongoing rehabilitation, and pain and suffering), as well as vehicle damage caused by the negligent or intentionally wrongful conduct of a driver. However, in some cases, additional damages may apply. 

Continue Reading ››

 Posted on January 23,2018 in Estate Planning

The start of a new year is an appropriate time to devote focus to ensuring that your finances are in order for both the short and long term. This due diligence requires that you give adequate consideration to every resource capable of aiding you and your family in the protection of your assets. Besides savings accounts, IRAs, 401(k)s, and investments in the stock market, estate planning is a tremendous resource in matters of asset protection. Devoting time now to careful estate planning focused on finances related to your business, health, and family can make all the difference in the future, allowing your intentions with regard to your assets to be followed correctly.

How Assets May Be at Risk

Three primary risks faced by assets are:

• Government taxation

Continue Reading ››