A Guide to Divorce and Cryptocurrency

In 2022, cryptocurrencies are playing a big role in divorces. If you’re facing a divorce and lost on how to find, value and split cryptos, here’s what you need to know. 

With the rise in popularity of cryptocurrency over the past few years, it is becoming a hot topic in many divorce cases. When it comes to dividing assets in a divorce, it can be difficult to know what to do with cryptocurrency. While there are many different types of cryptocurrencies, they all operate in fundamentally similar ways: they are digital currencies that can be exchanged for goods and services or other currencies, and many are traded on online exchanges.

This guide will give you a high-level overview of cryptocurrency and explain your options on how to deal with it in a divorce. Let’s take a look.

Cryptocurrency Basics

The rise (and falls) of cryptocurrency has been unlike anything we’ve ever seen. The market is so volatile that some have compared it to the Wild West. And yet, the demand for it seems insatiable. So what is cryptocurrency, and why are people so interested in it?

Cryptocurrency is a virtual or digital currency that can be used like real money as a medium of exchange. It is not a physical token, like a dollar bill, but is similar to an electronic payment system (think of swiping your credit card) as a way to pay for something.

Cryptocurrency “coins” are held in a digital wallet, which can be an online service, a software program, or a personal hard drive among other things. The wallet allows the owner to make secure transactions for goods and services or keep it as a type of investment. Since the coins are not issued by a central authority, like a bank or government, they are theoretically immune to inflation and other government interference.

Cryptocurrency and Taxes

When you sell or transfer cryptocurrency, it is treated as property and capital gains are taxed. You will incur a gain or loss when sold, transferred as payment for goods or services, exchanged with another crypto, and at other various scenarios.

You are required by the IRS to report gains and losses on each transaction even if the gain or loss is not material. The difference between the purchase price and sales/transfer price is what will be taxed.

If the value at the time of sale or transfer is more than the purchase price, you will incur a capital gain. If the value at the time of sale or transfer is less than the purchase price, you will incur a capital loss.

Understanding Cryptocurrency and Divorce

When you are going through a divorce, you will need to provide financial disclosures to your spouse. This includes information about your assets, income, and expenses. Cryptocurrency is considered an asset and not income. As such, it should be listed on your financial disclosures when you are going through the divorce process.

Most cryptocurrency holdings have a current value which is listed when you log into your account. The values listed are based on current exchange rates for that specific cryptocurrency to US dollars. However, values can fluctuate by a significant amount daily so it is important to keep this into consideration when using the value listed on the financial disclosures when dividing property.

How to Determine the Marital Portion of Cryptocurrency in a Divorce

Property division laws vary from state to state. A vast majority of states are equitable distribution states where assets are divided fairly but not always equally.

Illinois has taken steps to protect individuals who have invested in cryptocurrencies by allowing them to be counted as part of their overall net worth during divorce proceedings. In Illinois, all property held by either party is presumed marital property unless it falls under an exception such as being acquired before the marriage, being a gift or an inheritance.

Dividing crypto in Illinois is similar to the division of any other assets. Illinois is not a community property state, which means the court will split assets purchased, converted or appraised throughout the marriage in an equitable manner.

How Masters Law Group Can Help

When it comes to modern-day divorce cases, Masters Law Group has you covered on all things crypto. If you’re facing a divorce and suspect that your spouse is hiding crypto (and don’t know what signs to look out for), you can find that information in our recent blog here. If you have questions about the different types of popularized crypto, you can find that information right here.

Masters Law Group is here to help you through this stressful time. It’s important to consult your attorney as soon as you find any hidden cryptocurrency and discuss everything you know about the assets such as the type of crypto, the date of purchase and its appreciation. Gather any documents and records you may need in order to get your affairs in order.

Our team of attorneys are highly experienced in dealing with Cryptocurrencies in divorce and are here to answer your questions about divorce and digital asset division.

Contact us today for more information, or to schedule a consultation.

 

What are the Defenses to the Hague Convention?

A parent who moves with a child from the child’s home country to another country may face accusations that the move is wrongful. The Hague Abduction Convention is an international agreement to safeguard intercountry adoptions and parental abductions. 

The Hague Convention is a treaty that the United States has joined, along with many other countries. Its purpose is to protect children from the harmful effects of international abduction by a parent.

When one parent applies to the State Court or Federal Court for return of a child who has been taken from a foreign country and brought to the United States, or is wrongfully retained in the United States beyond the agreed-upon time frame of a temporary absence, that parent may assert certain defenses to prevent the return.

The courts can deny the return of an abducted child under six conditions listed in the Convention, including if a child would be at risk of being subjected to physical or psychological harm, or otherwise placed in an intolerable situation.

Fun Fact: Masters Law Group is highly experienced with Hague Convention cases, with clients not only in the Greater Chicagoland area, but also across the United States in Washington, Hawaii and Wisconsin. 

Here’s what you need to know about the defenses to the Hague Convention.

What is the Hague Convention? 

The Hague Convention on Civil Aspects of International Child Abduction, codified as ICARA, allows a parent whose child has been wrongfully removed from or retained in the United States to petition for the child’s return to his or her country of habitual residence.

This treaty was developed by the Hague Conference on October 25, 1980, and went into effect on December 1, 1983. There were two specific goals in mind for Hague Services:

  • Create a means to ensure that judicial and extrajudicial documents to be served abroad can be brought to the notice of the addressee in sufficient time.
  • Improve the organization of mutual judicial assistance.

The removal of a child is “wrongful” whenever it breaches the rights of the person who has custody attributed to them at the time of removal. Even if a parent already has legal custody of a child, the Convention is needed. This is because U.S. court orders are not always recognized in other countries and sovereign nations can’t interfere with each other’s legal systems, judiciaries, or law enforcement. 

Under the Convention on the Civil Aspects of International Child Abduction and the International Child Abduction Remedies Act (ICARA), when a child has been wrongfully removed from his or her home country, the court must order the child to be returned to his or her home country, unless the party removing the child can establish at least one of six narrow affirmative defenses.

Six Defenses of the Hague Convention

Here are the following defenses to claim wrongful removal under the Hague Convention:

Defense 1: That the petitioner (parent seeking the return of the child) was not “actually exercising custody rights at the time of the removal or retention” under Article 13.

Defense 2: That the petitioner “had consented to or acquiesced in the removal or retention” under Article 13.

Defense 3: That more than one year passed from the time of the wrongful removal or retention until the date the petitioner commenced a judicial or administrative proceeding for the return of the child, under Article 12.

Defense 4: That the child is old enough and has a sufficient degree of maturity to knowingly object to being returned to the petitioner and that it is appropriate to heed that objection, under Article 13.

Defense 5: That “there is grave risk that the child’s return would expose the child to physical or psychological harm or otherwise place the child in an intolerable situation,” under Article 13(b), and

Defense 6: That return of the child would subject the child to violation of basic human rights and fundamental freedoms, under Article 20.

It’s important to note, you should make International Custody Agreements & Parenting Time schedules before you relocate your child/children. U.S. Courts will need to determine the best interest of the child before you do so. 

If you believe your child has been wrongfully removed to a country overseas, or if you would like to move your child out of the U.S. you should contact your trusted family law attorney immediately.  Your attorney can explain the proper steps for handling this matter and guide you toward a just outcome.

How Masters Law Group Can Help

Parents face many obstacles when it comes to seeking judicial intervention in the US for the return of their children.  Erin Masters and Anthony Joseph have extensive experience in cases involving international child custody disputes in both courts located in the State of Illinois and the United States federal court system.

Our Family Law Firm has extensive knowledge and experience with The Hague Convention which provides that a parent whose child has been wrongfully removed from or retained in the United States may petition for the child’s return to his or her country of habitual residence. Our clients span across the entire Unites States, from Washington to Wisconsin; so you can rest assured knowing the experienced Masters Law Group attorneys are fighting for you and your family.

Check out our Featured Hague Decisions:

If you are faced with the terrifying scenario of International Parental Child Abduction, contact your trusted Chicago attorneys at Masters Law Group here today to schedule a consultation.

Divorce and Taxes: Filing After a Separation

For those in the process of ending their marriage, there is more to consider than a simple separation of assets. Whether legally separating or divorcing, you could be facing big changes in your individual tax situations— here, Masters Law Group shares information that could help. 

While most Americans are taking a sigh of relief after tax season, if you are separating from your partner, your taxes could need more attention. Much more.

Assets, Taxes and Divorce, OH MY

In the midst of a divorce, tax implications may not be the most pressing issue on your mind. However, filing taxes after you divorce and how you draw up your divorce agreement can make a big difference when it comes to getting a tax return.

The IRS lists four basic filing statuses available for individuals who are divorced or separating:

  • Married filing jointly. On a joint return, married people report their combined income and deduct their combined allowable expenses. For many couples, filing jointly results in a lower tax than filing separately.
  • Married filing separately. If spouses file separate tax returns, they each report only their own income, deductions, and credits on their individual return. Each spouse is responsible only for the tax due on their own return. People should consider whether filing separately or jointly is better for them.
  • Head of household. Some separated people may be eligible to file as head of household if all of these apply:
    • Their spouse didn’t live in their home for the last six months of the year.
    • They paid more than half the cost of keeping up their home for the year.
    • Their home was the main home of their dependent child for more than half the year.
  • Single. Once the final decree of divorce or separate maintenance is issued, a taxpayer will file as single starting for the year it was issued, unless they are eligible to file as head of household or they remarry by the end of the year.

When couples get divorced, they must divide all property and debts. Couples can hire an attorney (separately or jointly) to help prepare for a financial future after divorce. Here are some important things to think about so you can stay on top of your taxes.

Determine Your Filing Status

If you complete your divorce on or before December 31, you cannot file a joint tax return. If the new year starts before your divorce becomes official, the IRS will still recognize you as married and therefore allow you to file a joint return for the previous year. You are also eligible to file a joint return, but if you do not want to, you can choose the married filing separately.

If you are still legally married when filing your tax return, filing jointly may be your best option because you can claim more of a standard deduction by combining incomes with your spouse. The standard deduction is the amount of income that you can use to lower your tax bill. The standard deduction for tax year 2022 is $25,900 for married couples filing jointly, $12,950 for single taxpayers and married individuals filing separately and $19,400 for heads of households.

 In order to file taxes as head of household after a divorce, you must meet all three of the following requirements:

  • The last day of the year is considered the date on which you became unmarried (so you were either single, divorced or legally separated).
  • You paid more than half of the costs associated with keeping up your home for the year.
  • You lived with a qualifying dependent or child for more than half the year.

Updating Your W-4

If you and your spouse have jobs and earn wages, you’ll each need to fill out a W-4. This form tells your employer how much federal income tax to withhold from your paychecks. You’ll also need to split your allowances between both spouses on the W-4, so if you divorce, you may need to recalculate or adjust your withholding allocations. 

Joint filers need to split their W-4 withholding between both spouses, so if you divorce, you may need to recalculate or adjust your allowances.

Alimony payments from divorce or separation agreements that were finalized before Jan. 1, 2019, are still considered an above-the-line deduction when filing taxes. However, as of January 1, 2019, alimony arrangements can no longer be modified. Therefore, if you are the paying spouse in a divorce or separation agreement that was finalized after that date, you cannot deduct alimony payments when calculating your adjusted gross income. Unlike alimony payments, child support payments are not deductible. If you receive child support payments, you do not have to report them as income on your tax return.

Claiming Children as Dependents

If you have children, understanding who can claim them as dependents is important. This will also affect tax credits you can claim when you file your taxes. Parents who claim their children as dependents are known as custodial parents. Custodial parents have the children live with them for more days out of the tax year. Divorce agreements will usually have custodial parents underlined.

If you are not the custodial parents, you cannot claim child and dependent care credits. You also cannot file your taxes as the head of the household. Form 8332 is an IRS-approved document that allows custodial parents to release their claim to the exemption for a dependent child. If you sign Form 8332, you cannot claim the child as your dependent, and you cannot revoke it until the following tax year. In addition, the Trump tax plan eliminated exemptions for dependents in favor of a higher standard deduction.

Final Thoughts

Individuals who change their marital status through a legal separation or divorce must also change their tax filing status. For filing purposes, the IRS generally considers a couple married until they receive their final decree of divorce or separation.

If you’re going through a divorce, it’s necessary to take the proper steps to understand how it will impact your taxes. If you have specific questions about divorce it’s always best to work with an established and experienced family law attorney. 

Masters Law Group understands that divorce is a stressful situation and that our clients want to move on with their lives. As such, we move through settlement negotiations, mediation or litigation with our clients’ assurance and well being in mind.

Whether you are facing a contested divorce, uncontested divorce, or civil union divorce, our firm’s attorneys are ready to skillfully advocate for your position and provide your voice when you need it most. Contact us today to schedule a consultation.

Help Prevent International Parental Abduction with Supervised Visitation

If you are concerned your ex partner is at flight risk overseas with your child, supervised supervision could be beneficial. Here’s what you need to know…

Following a separation or divorce, particularly when relations are acrimonious, parental child abduction cases are an important factor to consider. Child abduction cases—particularly those involving international borders—are complex and extremely time-sensitive and require immediate action.

International child abduction often occurs for several reasons. It is a very frightening experience for parents and children alike, and it can have a profound effect on the lives of everyone involved.

Here is how supervised visitation and the help of the Hague Convention could help reduce international abduction.

What is Supervised Visitation?

When a parent’s fitness is in question, a judge may order supervised visitation. This is generally done when there have been allegations of alcohol or substance abuse or domestic violence. The purpose of supervised visitation is to ensure that the parent maintains contact with the child in a safe and comfortable environment.

Supervised visitation allows a parent to visit with their child only after the child has been taken away from the other parent. The visit may take place at the parent’s home or in a designated facility, such as a child care center. In most cases, the parent who has custody of the child will report to a designated visitation center for visits. In other cases, the judge may arrange for the child to be delivered to the parent’s home. In all cases, the judge will specify who is to supervise these sessions.

These orders are meant to protect the child and may include any of the following requirements:

  • A modification or elimination of the parent’s decision-making responsibilities and/or parenting time
  • Supervision by the Department of Children and Family Services (DCFS)
  • Having an intermediary present during the exchange between parent and child, or taking place in a protected setting
  • Restricting the presence of specified persons while a parent is exercising parenting time with the child
  • Ordering a parent to refrain from possessing or consuming alcohol or drugs during (or right before) parenting time with the child
  • Restricting the presence of certain persons when a parent is spending time with the child
  • Posting a bond to secure the return of the child following the parent’s visit
  • Completing a treatment program for abuse or for any other behavior that is detrimental to the child
  • Any other constraints or conditions that the court deems necessary to provide for the child’s safety or welfare.

The biggest takeaway parents should understand is that supervised visitation is a common tool used to protect children. Parents can still maintain contact with their children, but it also forces them to prove their ability to provide adequate care. Supervised visitation, when combined with the protections provided by the Hague Convention on International Child Abduction, makes it more difficult for parents to abduct internationally.

With the help from your attorney, require supervised visitation of the parent by a visitation center or independent organization until the court finds under Section 153.501 that supervised visitation is no longer necessary.

Hague Convention and What You Should Know

The Hague Convention on the Civil Aspects of International Child Abduction is an international agreement that aims to prevent children from being abducted from their home country. It provides a process through which a parent can seek to have their child returned to their home country.

Several countries around the world have joined an international treaty called the Hague Convention on the Civil Aspects of International Child Abduction. The Hague Conference on Private International Law drafted and concluded this multilateral treaty, which entered into force on December 1, 1983. In accordance with Article 3 of the Treaty, removal or retention of a child is considered wrongful “where it breaches rights of custody attributed to a person, judicial authority or other body at the time of removal or retention.”

Under the Convention, countries can help one another find solutions for difficult cases of international child abduction. This does not rely on a child’s immigration status or nationality; in certain situations, a child may be wrongfully detained in another country and therefore not a resident there. The Central Authority has the ability to do the following:

  • Be the point of contact for parents and children in international child custody cases.
  • Help locate abducted children.
  • Encourage solutions that work for both parents.
  • Submit documents as part of the application are admissible in courts in partner countries.

It is important to remember that immigration status or nationality does not determine whether a child will be returned to his or her habitual residence.

Final Thoughts

If you and your spouse are having a hard time with child custody, supervised visitation may be the best option for you. Ensuring a child’s safety should always be a number one priority for all parties involved. Especially when faced with international borders as part of a custody dispute, the court system can be very involved in resolving custody rights. 

The family law attorneys at Masters Law Group have experience with international child custody (Parenting Time) disputes. If you believe your child is in the process of being abducted by a parent, legal guardian, or someone acting on their behalf, contact us today for a consultation.

For more information on our Hague Decisions, see here:

Third-Party Custody Rights in Illinois

There are times when a parent or both parents can’t take care of their child anymore. That’s when a third-party custody arrangement is often sought. Read on if you’re involved in a third-party child custody battle or you think one may be happening soon. 

When a couple divorces, it is not uncommon for one parent to try to keep the child away from the other parent and his or her family. This can occur when a mother or father refuses to allow the child’s relatives to see the child.

Child custody – which is now known as Allocation of Parental Responsibilities – disputes are often resolved through mediation or negotiation, but if these attempts fail, then litigation may be necessary. The court will make a decision regarding custody based on what is in the best interests of the child.

Third-party custody is when a court gives legal and physical custody of a child to someone who is not a biological parent. This person is sometimes called the custodian. Here’s what you need to know about third-party custody rights in Illinois and how Masters Law Group can help.

What is Third Party Custody?

While many child custody disputes occur between the parents of a child, some circumstances exist where a third party non-parent, such as a grandparent, aunt, or uncle, may seek custody.

Often, a situation arises in which neither of the child’s biological parents is able to care for him or her. It then becomes necessary for a non-parent to take legal steps to be appointed guardian or custodian of the child. This could be due to a single parent being incarcerated, suffers from mental health issues or are physically unable to look after their child.

Illinois family law allows for a third party relative to petition the court for custody under special circumstances if it’s in the best interest of the child. There are special circumstances and times when the court awards permanent custody of the child to a third party like a child’s grandparents.

Illinois Third Party Non-parent Child Custody

Under Illinois law, the court prefers for a child to remain in the custody of one or both of the child’s parents. However, if the parent is unfit to care for the child pursuant to 750 ILCS 50, then the court may regard awarding third party non-parent custody as in the best interests of the child. 

If the child is removed from his or her parents’ custody and/or if his or her parents voluntarily relinquish their parental rights to him or her, then there are several other situations in which third party non-parent custody may be considered for that child. These include:

  • One or both of the children’s parents are in jail for over three months
  • The court declares one or both of the parents unfit
  • The parents agree to the visitation
  • One or both of the parents are deceased or have been absent for over three months

Illinois Third Party Non-Parent Child Visitation

When a child custody lies with a fit parent, the chances of a third party non-parent seeking custody may not be as successful. To show a parent is unfit, they must meet one or more of the following criteria:

  • Abandonment
  • Habitual substance abuse problems
  • Physical or emotional abuse
  • Mental illness or instability
  • Placing the children in an unsafe living environment
  • Being incarcerated
  • Uninterested in the children’s welfare
  • Neglect

The court will almost always give preference to the parents’ wishes concerning visitation with the child. There are certain cumstances that will warrant a third party non-parent seeking visitation rights from the court. A third party non-parent who seeks to obtain visitation privileges must show that he/she has a significant relationship with the child. If that is the case, then they would have a better chance of warranting such an order.

Gray Areas with Grandparents & Child Custody Rights

In all but the most extreme cases, parents have full discretion over how to raise their children. If a parent decides they do not want their child to have a relationship with their grandparents, that is legally within their right unless it would cause physical, emotional, or mental damage to the child. 

In Illinois, legal custody is considered parental responsibility which automatically defaults to parents making a decision. Grandparents can only receive custody if they meet the following criteria:

  • The parents willingly give up the child due to extreme financial hardship or other circumstances
  • The court declares the parents unfit because of criminal activity or substance abuse

Grandparents must be able to back up the following with evidence such as police reports, medical records, photos, and other documentation. It is always important to consult with an experienced family law attorney before you proceed with pressing any legal charges against the parents.

Is Third Party Custody Permanent? 

An order granting a third-party custody is permanent. However, parties can ask the court to change the custody order after it has been in effect for a year and they meet certain requirements. It’s called a custody modification. But getting the court to change custody is not easy. The process for doing a third-party custody modification is the same as custody modifications between biological parents.

Final Thoughts

Oftentimes, child custody and visitation topics can be highly emotional issues. Disputes over third party non-parent visitation can be difficult. Because of this, the experienced attorneys at Masters Law group can assist you with third-party custody litigation.

Protecting the child and their best interests should be your number one priority regardless of which side you are on in this situation. If you or a loved one would like to know more about third party custody in Illinois, contact Masters Law Group here today.

Beaming With Pride: Illinois Civil Unions

With just two days left of Pride Month, Masters Law Group looks back at the history of LGBTQ rights, as well as the legalities of Civil Unions in our great state of Illinois. 

June is widely celebrated as Pride Month to the world. The month of June commemorates the 1969 Stonewall uprising in New York City when LGBT people stood up against police brutality and injustice and demanded fair treatment for all. LGBT people and their allies celebrate accomplishments achieved since Stonewall, but they also advocate for what needs to be done in order to secure full equal rights.

Anti-LGBT discrimination and violence are unfortunatley still rampant. Marriage equality still remains an issue at the forefront of Pride. What better way to close out Pride Month than with love and acceptance. Here’s what you need to know about Illinois Civil Unions.

What is a Civil Union?

Civil unions allow two adults, of either the same or opposite sex, to enter into a legally recognized relationship.

Civil unions first became legal in Illinois on June 1, 2011. A civil union is a legal relationship granted by the State of Illinois. A common misconception is that civil unions are only for same sex-couples. Both same-sex and opposite-sex couples who are in committed relationships can enter into a civil union in Illinois. Partners who enter into a civil union in Illinois are entitled to the same legal obligations, responsibilities, protections, and benefits that state law provides to married spouses. 

It is important to note that civil unions entered into in Illinois are not recognized under federal laws. Partners to a civil union in Illinois are entitled to almost none of the obligations, responsibilities, protections, and benefits that federal law provides to married spouses. 

Civil Union Guidelines

You can enter into a civil union in Illinois if you are a same-sex or opposite-sex couple in a committed relationship. You and your partner must both be at least 18 years old (or with the sworn consent of your parents or legal guardians if you are 16 or 17 years old) and neither of you can already be in a marriage, civil union, or substantially similar legal relationship.

If you are 16 or 17 years old, you may enter into a civil union in Illinois if your parents or legal guardians appear before the county clerk when you apply for a civil union license, provide valid identification, and give sworn consent to you entering into a civil union. 

Illinois also does not allow civil unions between close relatives. Illinois law prohibits you from entering into a civil union if you or your partner are currently married or in a civil union or substantially similar legal relationship. To enter into a civil union, your prior marriage, civil union, or substantially similar legal relationship must either be dissolved or your previous spouse or civil union partner must have died. 

What Happens if We Enter into a Civil Union and Our Relationship Later Ends? 

If you enter into a civil union in Illinois, and later divorce or become legally separated, you will need to apply for dissolution of the civil union before the court can end your legal relationship. If you and/or your partner move to another state after entering into a civil union in Illinois, the courts of that state may dissolve your civil union. If your civil union cannot be dissolved by the courts in the state of your residence, it can be dissolved by an Illinois state court.

 The dissolution of civil unions follows the same procedures and is subject to the same rights and obligations that are involved in dissolving marriages. Illinois law will dissolve a civil union if either you or your partner establish grounds for dissolving the union, or if you have lived apart for at least two years and can establish that the union must be dissolved due to irreconcilable differences.

It is important to dissolve your civil union when the relationship ends. If you do not, your legal relationship with your civil union partner will continue.

Do You Need a Family Law Attorney for Your Civil Union? 

At Masters Law Group, we are committed to providing exceptional, individualized services to clients in civil union disputes. Our firm has extensive experience in this area of family law. We handle family law matters in civil unions and same-sex marriages, providing legal representation for clients throughout the state of Illinois. 

Whether you want to form a civil union or are in need of a civil union dissolution, we will take the time to fully understand your situation and provide honest advice regarding your options. Contact us here today to schedule a consultation.

The Illinois Divorce Process and Cryptocurrencies

Cryptocurrencies are a new form of currency, rapidly gaining popularity and media attention across the globe. It’s estimated more than 20 million Americans may own cryptocurrency, and how to split holdings has become a growing concern in divorce settlements. 

The problem for divorcing couples is that the division and valuation of cryptocurrencies can be just as difficult as dividing up the equity in a home.

Throughout our cryptocurrency series we have answered many questions regarding different types of crypto and where you can find hidden assets. In a world where cryptocurrency is increasingly accepted as legitimate, it’s only natural that Masters Law Group’s experienced attorneys would know how to handle it. Here’s a quick look at how the state handles the issue at hand.

Disclosing Bitcoins And Cryptocurrencies in an Illinois Divorce

It’s important to understand how the state of Illinois divides and separates cryptocurrency assets. Illinois has taken steps to protect individuals who have invested in cryptocurrencies by allowing them to be counted as part of their overall net worth during divorce proceedings.

However, there are some stipulations involved in this process. Any money received from selling cryptocurrency is considered to be liquidated property and thus should not be counted as part of the overall net worth of an individual during a divorce settlement.

This process may trigger a couple of questions. How would you verify Bitcoin holdings? Would you print a screen grab from an online platform where you hold Bitcoin or other cryptocurrencies? Would you entrust your ex-spouse or their attorneys with the password to your accounts? Coin exchange companies such as Coinbase will issue a 1099-K each year if there have been $20,000 or more in exchanges of cryptocurrency.

Typically, the opposing party’s attorney will go through the process of cleaning up the financial affidavit and ask you for these documents to verify the claimed assets. The opposing party’s attorney will issue a “Notice To Produce” asking for copies of statements for your 401k, bank accounts, etc. If you have access to those documents, you must provide them a copy of those documents if they request it. Failure to do so can result in a finding of contempt of court.

The Illinois Department of Revenue requires 1099-K forms to be submitted electronically to Illinois when four or more separate transactions exceed $1,000 or if you are required by the IRS* to electronically file Forms 1099-K.

Essentially any 4 crypto-currency purchases, sales or trades will trigger a 1099-K in Illinois and the cryptocurrency holder will have those 1099-K as part of their standard tax packet. If your spouse will not fully disclose their cryptocurrency holdings, you may have to turn to an expensive third party to discover any additional holdings.

How Do You Divide Crypto in Illinois?

After determining the actual existence and quantity of your spouse’s cryptocurrency, the next step in the analysis is to figure out what portion of the cryptocurrency is marital. In Illinois, all property held by either party is presumed marital property unless it falls under an exception such as being acquired before the marriage, being a gift or an inheritance.

Typically, if both parties agree to the settlement they might have to include a formula for the volatility of the crypto. Once the judge approves of the formula, the price of that cryptocurrency in the martial estate becomes more foreseeable. 

Dividing crypto in Illinois is similar to the division of any other assets. Illinois is not a community property state, which means the court will split assets purchased, converted or appraised throughout the marriage in an equitable manner. It’s important to note that when it’s split equitably, it doesn’t always mean equal. Here are a couple factors that determine equitable distribution:

  • Age, health, financial circumstance of a spouse
  • Financial contributions to marital estate
  • Court-ordered obligations related to previous marriages
  • Child custody considerations
  • Prenuptial and postnuptial agreements
  • Tax Concerns
  • Marriage Duration
  • Alimony provisions

If you are ever unsure about the ownership of your property, you should consult legal counsel immediately in order to avoid any uncertainness. Lastly, if both parties agree to the settlement they might have to include a formula for the volatility of the crypto. Once the judge approves of the formula, the price of that cryptocurrency in the martial estate becomes more foreseeable.

The volatility of the price of these assets makes it very difficult to adequately value at the time of the divorce. Discovery and final negotiation of a divorce can sometimes take months and in that time a cryptocurrency could double or halve in value. A cash out of the cryptocurrency before the finality of the divorce is probably advised to finalize the marital value.

How Masters Law Group Can Help

When it comes to modern-day divorce cases, Masters Law Group has you covered on all things crypto. If you’re facing a divorce and suspect that your spouse is hiding crypto (and don’t know what signs to look out for), you can find that information in our recent blog here. If you have questions about the different types of popularized crypto, you can find that information right here.

Masters Law Group is here to help you through this stressful time. It’s important to consult your attorney as soon as you find any hidden cryptocurrency and discuss everything you know about the assets such as the type of crypto, the date of purchase and its appreciation. Gather any documents and records you may need in order to get your affairs in order. 

Our team of attorneys are highly experienced in dealing with Cryptocurrencies in divorce and are here to answer your questions about divorce and digital asset division.

Contact us today for more information, or to schedule a consultation.

Father’s Rights in Illinois

Father’s Day is a special time to celebrate the men who have given so much to their families. But it’s also the perfect opportunity to reflect on fatherhood in America. Here at Masters Law Group, we want to take this opportunity to remind fathers their rights are equally important; to you, to your child/children, and to the law. 

If you are the father, you may worry about what your parental rights are under Illinois law. Unmarried or divorcing fathers are often especially concerned about their parental rights and responsibilities.  According to the Illinois Parentage Act of 2015, the state recognizes “the right of every child to the physical, mental, emotional, and financial support of his or her parents. The parent-child relationship, including support obligations, extends equally to every child and to his or her parent or to each of his or her 2 parents, regardless of the legal relationship of the parents, and regardless of whether a parent is a minor.” (Source: P.A. 99-85, eff. 1-1-16.)

Before paternity is established, the current system has mothers as primary caregivers by default, even though we know that most dads want equal time with their kids. If you’re one of those dads, or know someone who hasn’t been treated fairly, here’s what you should know to help ensure that your rights as a father are protected.

The Importance of a Father in a Child’s Life

It is no secret that mothers and children share a special bond. Mothers are viewed as the most important person in a child’s life, being their capable caregivers, caring supporters, and strong providers. While there is no doubt that mothers play a vital role in children’s lives, it is also important to know about the importance of fathers or father figures in children’s lives. 

Studies have shown that children who have involved and supportive fathers tend to do better academically while also having an easier time with their language and social development. Fathers can also act as capable caregivers, loving nurturers, and effective disciplinarians for children.

Because of these findings, it is essential for both parents to be involved in their child’s life. It is important for both parents to spend quality time together with their children so they can share experiences together as well as develop meaningful relationships with one another.

Establishing Paternity in Illinois

If you are a father who wants to establish your parental rights, one of the first steps you need to take is to establish paternity, also known as “parentage”.

In Illinois, all children have a right to the mental, physical, monetary, and emotional support of their parents. Additionally, Illinois law states that both children and parents have a right to a relationship with one another—whether or not they are married. Married parents have an easier time establishing paternity than unmarried ones do: married couples can simply marry after the child is born in order to establish paternity, while unmarried couples must take additional steps.

There are four processes parents can follow in order to establish paternity: 

  • Marrying after the child is born
  • Voluntary Acknowledgement of Paternity 
  • Paternity action brought before the court
  • Paternity order issued by the Department of Healthcare and Family Services’ Child Support Services.

The easiest way to establish paternity is by signing a VAP form. When families go to the hospital or medical facility to have their baby, the staff provides them with this form if the couple is unmarried. Both parents should read the form, ensure they understand it, and then sign and date it before a witness (someone 18 years or older). Once this form is completed, the father’s name appears on the child’s birth certificate before the family leaves the hospital.

When both parents sign a VAP form, they are agreeing that the male listed on the form is the child’s legal and biological father. This form also waives both couples’ right to genetic testing for themselves and the child. Both parents are acknowledging that they will provide financial support and medical care for the child. While signing this document provides all of these rights, it does not give either parent any right to custody or visitation – parents need to take any custody issues they have through the family court system in Illinois.

Father’s Rights to Custody and Visitation

In Illinois, child custody and visitation are called the “allocation of parental responsibilities” and “parenting time.” The Illinois Marriage and Dissolution of Marriage Act states that all parents have a right to enjoy “reasonable” parenting time unless there is a good reason for the parent to be denied access to his or her child. If the court holds a hearing and finds that granting parenting time “would seriously endanger the child’s mental, moral, or physical health or significantly impair the child’s emotional development,” the parent may not be allowed to spend time with his or her child unsupervised. Unless you have a history of domestic violence or previous convictions for violent crime, or if there is another reason for the court to restrict your parenting time, you have a legal right to spend time with your child.

In cases where parents have gone to court to determine Illinois child custody and visitation, the judge overseeing the case uses the “best interests of the child” standard in order to guide his or her decision making. This means the judge only considers a decision that benefits the child involved regardless of the parents’ other group’s wishes.

The judge deciding the case looks at a number of different factors when choosing the best possible custody decision for the child. Some of those factors include, but are not limited to:

  • The relationship between each parent and their children
  • How well each parent is able to care for their children
  • The age of each child involved in this case
  • The mental health status of each parent involved in this case (if either party is suffering from some sort of mental illness or addiction)

Should fathers be granted primary custody, they have the same right to seek child support as mothers would in the same situation. Should fathers have difficulty collecting the ordered child support, there are a number of resources to use in order to collect those payments. For the state of Illinois, the Illinois Department of Child Support Services (DCSS) is solely dedicated to providing child support services based on both state and federal laws.

Final Thoughts

Fathers often feel as though they are at a disadvantage when it comes to child custody and support. This can make it difficult for fathers who want to fight for their rights in a paternity case, child custody case or child support case. As attorneys experienced in father’s rights, we can help guide you through this process by explaining your options and help you understand what steps you need to take to ensure your rights are protected under the law. 

We can also assist you in gaining the time with your children that you deserve while providing valuable assistance when it comes to paying child support and other expenses associated with raising a child. 

For more information on Father’s Rights, Parenting Time, Allocation of Parental Responsibilities, Child Support and more, visit our website to talk to our experienced attorneys. 

Child Visitation Rights for Same Sex Couples

Happy LGBTQ Month! To celebrate Pride month, Masters Law Group dives into everything you need to know about Child Visitation (Parenting Time) Rights for Same Sex Couples in our great state of Illinois.

It’s been eight years since Illinois legalized same-sex marriage in the state. If you are a spouse in a same-sex marriage, you may be unfamiliar with Illinois’ visitation rights laws. Though the same statutory provisions apply regardless of same or opposite sex parents, the laws can be complex.

Masters Law Group understands how difficult divorce is for parents who want nothing but the best for their children. Rest assured, our attorneys have in-depth knowledge of same-sex child custody and vistation laws in order to help you. Here’s a look at Parenting Time in Illinois for Same Sex Couples.

What are Child Visitation Rights?

Child Visitation Rights is the in-person time spent between a child and the child’s parent, or guardian which can fall under a grandparent, great-grandparent, sibling, step-parent, or any person designated under subsection (d) of Section 602.7.

The amount of time that a parent or guardian is allowed to visit their child depends on many things. A court won’t restrict visitation in either a joint custody arrangement or a sole custody situation except when it’s necessary to protect a child’s welfare. Under Illinois law, the restriction of parenting time refers to any limit or condition on parenting time, including supervision.

Courts in Illinois don’t typically place restrictions on parenting time, unless necessary to prevent serious endangerment to a child. In Illinois, courts can create restrictions if they feel it necessary in order to protect the child, here are a couple examples of the following:

  • Supervision at visits
  • Mandate locations for visits
  • Deny visits when the parent is under the influence of drugs/alcohol or has used them within a designated period preceding the visit; and
  • Deny overnight visits

It’s important to note that only parents have a legal right to parenting time. However, there are circumstances where guardians may ask for a visitation order from the court when they have been denied reasonable visitation.

Same-Sex Parents Have the Same Parenting Time Rights

In 2015, the Overgefell v. Hodges case went to the US Supreme Court which handed a decision that put same-sex couples on equal footing with all other spouses in domestic relations matters.  People of the same-sex can marry, divorce, and address all of the key issues that come up when dissolving their marriage. The basis of this ruling is the 14th Amendment which prohibits the government from denying a person of certain rights without due process.

States were violating this constitutional concept by forbidding same-sex marriage so the Justices made it legal across the board. As such, same-sex couples can – and must – address child custody, visitation, and child support in any divorce case involving minor children.

Illinois Law on Child Visitation/Parenting Time For Same-Sex Couples

Illinois divorce law uses the terms “Allocation of Parental Responsibilities and Parenting Time to refer to the various issues involved with raising a child. Here are the following provisions:

  • Parenting Time: This concept goes hand in hand with the idea of traditional visitation, where the parent enjoying the time with the child is responsible for the care of the child and making non-significant decisions about the child.
  • Parenting Plan: When a couple divorces, they must submit a Parenting Plan to the court outlining agreements on decision-making and parenting time. Parents who cannot agree may file a separate Parenting Plan and the court will make a decision based upon the child’s best interests.

Illinois Parenting Time Guidelines

Illinois prefers shared parenting time whenever it’s in the child’s best interests. In shared parenting time, the child spends periods with both parents.

A judge must approve all parenting time schedules, even when parents come to an agreement in a settlement. If parents can’t agree, each submits a proposal, and the court decides.

Keep in mind that schedules should align with your child’s needs and can affect your child support payments.

The schedule is a part of your parenting plan, meaning it becomes a legally-binding court order with a judge’s approval. It is important to follow the schedule as written, though parents can agree on small tweaks or ask the court to modify the order.

Hiring an Experienced Attorney

By hiring a knowledgeable family law attorney – who is highly experienced in same-sex family law issues  – you will only help put you and your family at ease. 

Masters Law Group represents individuals in both their initial quest to set a parenting time schedule, as well as parents looking to modify a previously determined schedule.

Throughout her career, attorney Erin E. Masters has focused her practice on all areas related to family law, including divorce, child custody and support, paternity issues, visitation and parenting time, pre- and postnuptial agreements, prosecuting and defending Orders of Protection, and many other areas involving domestic relations and dissolution of marriage.

Furthermore, attorney Anthony G. Joseph is also on the list of approved Guardian Ad Litem/Child Representatives for the Domestic Relations Division of the Circuit Court of Cook County. So you can rest assured you are in the best possible hands.

Don’t hesitate to reach out with any questions, contact us here today to schedule a consultation.

Hague Convention – National Missing Children’s Day

Today is National Missing Children’s Day; dedicated to encouraging parents, guardians, caregivers, and others concerned with the well-being of children to make child safety a priority. If you are faced with the terrifying scenario of International Parental Child Abduction, here is what you need to know. 

National Missing Children’s Day was proclaimed by president Ronald Regan on May 25, 1983. This was to honor Etan Patz, a 6 year old boy who disappeared in New York City on May 25, 1979.

Every year for national missing children’s day, the Department of Justice commemorates Missing Children’s Day by honoring the heroic and exemplary efforts of agencies, organizations, and individuals to protect children.

Here, Masters Law Group covers the Hague Convention – aimed to protect children from international parental child abduction. Let’s take a look at the Hague Abduction Convention, and what you should know in honor of national missing children’s day.

HAGUE CONVENTION & ITS BACKGROUND

The Hague Convention is a treaty that many countries, along with the US have joined. On May 29, 1993, the Convention established international standards of practices for intercountry adoptions. The United States signed the Convention in 1994, and the Convention entered into force for the United States on April 1, 2008. 

The overall purpose of the Convention is to protect children from the harmful effects of international abduction by a parent by encouraging the speedy return of an abducted child to their country of habitual residence. As well as to organize and secure the effective rights of access to a child.

BECOME AWARE OF CHILD ABDUCTION

Awareness is one of the most important things you can do to prevent the unthinkable from happening. Oftentimes, the people who you least expect are capable of abducting your child are family members. It’s not unusual for a parent who abducts their child to believe that they know what is best for the child. 

Young children are the easiest to abduct because they don’t know to go for help or do anything to bring attention to their parents taking them. Some other warning signs and factors that are important to be aware of are:

  • A parent with no source of income/job.
  • A parent who is financially independent.
  • A parent with no real ties to the community they live in.
  • A parent who abruptly quits their job, sells their home, applies for passports.
  • A parent who starts collecting the child’s medical and school records.
  • A parent who has domestic violence and/or child abuse history.

Some additional steps to lower the risk of parental abduction or increase your odds recovering your child if they are abducted would be:

  • Have up-to-date pictures of your child.
  • Fingerprints of your child.
  • Have a written detailed description of your child including: height, weight, hair color, eye color, birthmarks, and noticeable physical characteristics.
  • Copies of your child’s Social Security card and passport.
  • Register your child with the Children’s Passport Issuance Alert Program (CPIAP).

THINGS YOU CAN DO THIS MISSING CHILDREN’S DAY

While all of the things mentioned above are great things to keep in mind, another layer of safety would be having child custody and visitation matters in place. Having a system that works for you and your child as well as the other parent involved can make it easier to keep accountability. 

Whenever a Child custody or visitation issue arises, you should report it to state or local law enforcement authorities or a state judicial officer. In addition to contacting the Department of State, Office of Children’s Issues, law enforcement or left-behind parents should also contact the National Center for Missing and Exploited Children (“NCMEC”): www.missingkids.org. 

NCMEC works closely with the State Department and the U.S. Department of Justice’s Office for Victims of Crime and administers its Victim Reunification Travel Program. Eligible parents can request financial assistance so they can be reunited with a child located in another country or obtain travel support for the child’s return to the United States.

Lastly, seeking a family law firm who are highly experienced in cases involving international child custody disputes (in both courts located in the State of Illinois and the United States federal court system) could be an invaluable resource in this incredibly stressful time.

FINAL THOUGHTS

The commemoration of National Missing Children’s Day serves as a reminder to continue our efforts to reunite missing children with their families and an occasion to honor those dedicated to this cause. It’s important for the US along with other countries to be a part of the Hague Convention. By doing so, we can negotiate treaties to help streamline international justice. 

It is essential to have the help from a knowledgeable family law attorney who understands all of the legalities that go along with international child custody cases.

Our attorneys, Erin Masters and Anthony Joseph, have extensive knowledge and experience with The Hague Convention on Civil Aspects of International Child Abduction (“The Hague Convention”) that was enacted into law through the International Child Abduction Remedies Act (“ICARA”). 

See Our Featured Hague Decisions Here:

Contact us here today to learn more.