Tag Archive for: Chicago Divorce Attorney

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.

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.

Why Some Couples Choose Civil Unions Over Marriage

If you want to make your partnership official you may be looking at all your options. Civil unions are recognized in a handful of states and often offer the same protections as marriage. Learn more about civil unions and how they compare to getting married here.

Civil unions are marriage-like agreements but there are some differences they share. Civil unions were created to allow same-sex couples to publicly commit to eachother without granting them perimission to marry.

Nowadays, civil unions are less relevant since the U.S. Supreme Court ruled that same-sex marriage bans were unconstitutional in 2015 (Obergefell v. Hodges). It’s important to note that there are many people who remain in civil unions or domestic partnerships despite the availability of same-sex marriage.

For these reasons, the distinctions between marriage and civil unions may still produce legal issues. Here’s a look at why some couples choose civil unions over marriage.

What is a Civil Union?

In Illinois, a civil union is a legal relationship between two people that gives them legal rights to marriage. Civil unions first became recognized in 2011, when the Religious Freedom Protection and Civil Union Act was passed. Civil unions can be entered by same-sex or opposite sex couples.

Partners who enter civil unions are granted the same protections, responsibilities and benefits that one would normally receive in a marriage. Eligibility for those wanting a civil union include the following:

  1. Must be 18 years of age or older.
  2. Cannot be related – by the half or the whole blood or by adoption; an aunt or uncle and a niece or nephew, whether the relationship is by the half or the whole blood, or by adoption; or between first cousins.
  3. Cannot enter civil unions prior to dissolution of marriage or similar legal relationships.
  4. Individuals who live out of state, as that civil union would not be legal in their home state.

It is important to note that while civil unions are legally recognized in Illinois, they are not federally recognized.

Benefits of a Civil Union

One of the biggest benefits that a civil union provides couples with is the same state rights as a married couple in Illinois. It is for this reason that many decide to join a civil union. If a couple decides that they don’t want to be married for personal reasons or other reasons, they would still receive the same legal protections as a married couple. 

The second biggest benefit of a civil union is the access to employment and healthcare benefits. In a civil union, you have access to your partner’s employer provided health insurance. Marriage oftentimes comes with social and religious obligations that some may want to demonstrate to their partner differently. A civil union is a great way to do those things. 

Here is a list of some of the benefits that a civil union and a marriage share:

  • Inheritance rights, or the right to automatically inherit from your spouse after he or she dies.
  • Bereavement leave to mourn for your spouse.
  • Right to your spouse’s employment benefits, including health insurance.
  • Automatic designation as next-of-kin by medical professionals.
  • Joint ownership of property, and community property rights if you’re in a community property state.
  • Joint state tax filings.
  • Joint parental rights over children born to or adopted by the couple.
  • Right not to testify against your civil union partner, and
  • Right to seek financial support or alimony after a dissolution from the civil union.

Limitations of Civil Unions

The biggest difference between a civil union and a marriage is that the former is not recognized by the federal government. Therefore, you will only get protection at a state level (and that is assuming you live in a state that recognizes civil unions.) It is because of this that couples in a civil union can’t receive the same federally based benefits that married couples receive. For example, the Social Security Administration gives benefits to partners in a marriage, but not necessarily those in a civil union. The surviving spouse of a veteran may be eligible for health coverage in a marriage, but not always in a civil union. Consequently, many couples are now opting to get married instead of entering a civil union. 

The other difference is that while marriages are recognized by every state (if you get married in Illinois it will be recognized in New York) civil unions are not. That means if you get a civil union certificate in one state and then move to another state you might not get the same benefits.

As a result of these differences, it is important to consider which option is best for your new family. Though a prenuptial agreement isn’t the most romantic item on the agenda, it’s a great way to protect you and your assets before entering a marriage or civil union. An experienced attorney can answer any questions that you might have about the process.

Final Thoughts

Now that same-sex marriages are recognized federally civil unions may be a lot less popular and common. In fact, only five states allow them: Illinois, Colorado, Hawaii,  Vermont, and New Jersey. However, civil unions can be beneficial in two circumstances:

  • If you or your partner don’t believe in marriage or don’t like the idea of getting married, but still want many of the same legal protections.
  • If you or your partner don’t want to be recognized as legally married by the federal government because of tax purposes.

Several unique issues can arise during the process of establishing or dissolving a civil union, so it is vital to have a knowledgeable lawyer to guide you through every step.

At Masters Law Group, we provide professional and individualized legal representation for a wide range of family law concerns, including civil unions. Our firm has dedicated considerable time in order to become knowledgeable and up to date in this new area of family law. 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.

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

Parenting Time & Visitation Tips for Visit your Relatives Day

National Visit Your Relatives Day is recognized on May 18. It is a day dedicated to spending time with your loved ones and cherishing family time. Parenting Time of your child can be an emotional law topic. Parenting Time rights may be determined by the agreement of the parties or by a court order.

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. Here are a couple parenting time and visitation tips you can follow in honor or visit your relatives day.

Create a Parenting Plan

This is by far one of the most important steps you can take when you’re divorced and co-parenting. A parenting plan is a legally-binding agreement and should be respectfully treated as such. You can develop one informally if you are communicating well or you can have your attorney or mediator help create one for you. 

It’s a good idea for a parenting plan to have a system in place for how disputes should be handled if the situation arises, and a way in which parents can periodically review and make necessary changes to the plan. 

The plan may also include other provisions or information intended to help both parents understand and abide by the shared responsibilities in raising the child or children. Once you have it in place, you’ll be a little more at ease. If you don’t already have one, it can make your life a little easier.

Be Reasonable when Establishing a Parenting Arrangement

A divorce is difficult to go through. At times you may need to take a step back and try to be reasonable when it comes to your children. Start by looking at the relationship your children have with each parent, and remember that children do best when they are allowed to continue to have a strong relationship with both parents. 

While you may have some disdain for the other person, your children love them. Pointing out every flaw the other parent has is not going to help your children when it comes down to establishing custody. 

Respect the Needs of Your Children

Children do not need to be put in the middle of your divorce. They need to know that both parents love them, and that both parents want to be part of their lives. Telling your children how horrible the other parent is will only confuse them. Respect the needs of your child by enjoying them when they are with you, doing your best to parent them. Unfortunately when it comes to younger children they aren’t able to verbalize what they want out of a custody arrangement, but older children can. For example, they may verbalize that they want to stay in the same home during the week while they are at school. 

Perhaps you were an absent parent, always on the road working. While it may be hard to agree that the child should spend more time with the other parent, your sacrifice will make the divorce easier on your children.

Think About Your Support Network

Having children is hard, and raising them without a support network is nearly impossible. Think about your new life, and how being divorced is going to impact your support network. Look at the people around you, and those you believe will still be around even during the aftermath of your divorce. While you can’t create a custody schedule based on support alone, it’s important that you have the help you need if an emergency arises.

Communication is Key

If the two of you struggle to communicate in a civil manner, it’s important to establish one form of communication right away. Many couples use different methods of communication but it’s ultimately what works for the both of them.  Nowadays there are various online software programs, where both parties can send messages, a calendar can be created, and all communication between the two of you can be recorded in one place. 

The court will look at this communication when there are issues brought forth to the court, and both parties will be held responsible for what they are communicating with the other person.

Final Thoughts

We hope with the help of these tips mentioned above, it can make way for you to navigate through parenting time and visitation in an appropriate and enjoyable manner. Shared legal and shared physical custody entitles you to regular visitation, and decision-making in all aspects of their lives. While the other parent may try to prohibit you from making decisions, you need to know that you have the legal right and obligation to help make these decisions. 

For more information on Divorce, Parenting Time, Allocation of Parental Responsibilities, Child Support and more, visit our website to talk to our experienced attorneys. With their in-depth knowledge and experience in Family Law, we’re sure to help you get through parenting time and visitation together.

Cryptocurrency Series: 12 Most Popular Types of Crypto and What to Know Before Divorce.

Cryptocurrency is by design difficult to trace, making it an ideal asset to hide from a spouse. If you’re new to the world of Crypto, it gets even more challenging. Here’s a list of the most popular cryptos to look out for and how to include them in your divoce settlement. 

If you’ve been following our Crypto and Divorce series you may already be aware of the difficulties crypto assets bear in divorce. As a quick recap, we’ll be covering what Cryptocurrency is as well as the 12 most popular types of crypto in the market.

With all of these forces at play during a divorce, it’s best to be prepared for whatever the outcome may be and hiring a family law attorney well-versed in cryptocurrencies is always an advantage. Here’s what you need to know about the 12 most popular types of Cryptocurrencies and how you can best prepare for them before divorce. 

Cryptocurrency is a digital form of payment that can be used to purchase goods or services online. Every transaction is done online and tracked via a highly secure ledger called a blockchain. Let’s jump into some of the various types of crypto there is on the market.

  • Bitcoin (BTC)

Notably known as the most popular form of crypto, Bitcoin is widely known as the first major cryptocurrency to hit the market. It first debuted in 2009 and many others have become popular but not as popular as the original. 

Bitcoin is still the coin people generally reference when they talk about digital currency. Its mysterious creator — allegedly Satoshi Nakamoto — debuted the currency in 2009 and it’s been on a roller-coaster ride since then. However, it wasn’t until 2017 that the cryptocurrency broke into popular consciousness.

  • Ethereum (ETH)

Ethereum is the second name you’re most likely to recognize in the crypto space. The system allows you to use ether to perform a number of functions, but the smart contract aspect of Ethereum helps make it a popular currency.

Ether is used mainly for two purposes: It is traded as a digital currency on exchanges in the same way as other cryptocurrencies, and it is used on the Ethereum network to run applications. According to Ethereum, “people all over the world use ETH to make payments, as a store of value, or as collateral.”

  • Tether (USDT)

Tether’s price is anchored at $1 per coin. That’s because it is what’s called a stablecoin. Stablecoins are tied to the value of a specific asset, in Tether’s case, the U.S. Dollar. Tether often acts as a medium when traders move from one cryptocurrency to another. Rather than move back to dollars, they use Tether. However, some people are concerned that Tether isn’t safely backed by dollars held in reserve but instead uses a short-term form of unsecured debt.

  • Binance Coin (BNB)

Binance Coin is the cryptocurrency issued by Binance, among the largest crypto exchanges in the world. While originally created as a token to pay for discounted trades, Binance Coin can now be used for payments as well as purchasing various goods and services.

  • USD Coin (USDC)

Tether and USD Coin are both stablecoins that are attached to the dollar, meaning that its value should not fluctuate. The currency’s founders say that it’s backed by fully reserved assets or those with “equivalent fair value” and those assets are held in accounts with regulated U.S. institutions.

  • Ripple (XRP) 

Formerly known as Ripple and created in 2012, XRP offers a way to pay in many different real-world currencies. Ripple can be useful in cross-border transactions and uses a trust-less mechanism to facilitate payments. 

Ripple is known for their advanced blockchain technology for global payments. Where financial institutions are able to expand into new markets around the world and eliminate pre-funding by leveraging the power of XRP.

  • Solana (SOL)

Solana was created in 2017 by Anatoly Yakovenko alongside current Solana board member and Chief Operations Officer Raj Gokal. Yakovenko, now Solana Lab’s CEO, came from a background in system design and wanted to apply his knowledge toward a new blockchain paradigm that enabled faster processing speeds.

Solana is a newer cryptocurrency and it touts its speed at completing transactions and the overall robustness of its “web-scale” platform. The issuance of the currency, called SOL, is capped at 480 million coins. Solana’s increasing popularity has made it Ethereum’s growing rival. 

  • Terra (LUNA)

Using its currency Luna, Terra is a platform that helps backstop a range of stablecoins based on real currencies such as the dollar or euro. Terra helps stabilize the price of stablecoins through various technical means, and it also supports smart contracts.

According to the Terra website, the Terra protocol creates stablecoins that track the price of any fiat currency using a combination of open market arbitrage incentives and decentralized Oracle voting. On the Terra blockchain, users may spend, save, trade, and swap Terra stablecoins.

  • Cardano (ADA)

Cardano is the cryptocurrency platform behind ada, the name of the currency. Cardano is a proof-of-stake blockchain platform: the first to be founded on peer-reviewed research and developed through evidence-based methods. It combines pioneering technologies to provide unparalleled security and sustainability to decentralized applications, systems, and societies. Cardano was created by the co-founder of Ethereum, and this cryptocurrency also uses smart contracts, enabling identity management. 

  • Avalanche (AVAX)

Avalanche is a fast and low-cost smart contracts-based blockchain platform focused on building decentralized apps and facilitating the creation of custom blockchains. Its users can process transactions in the native AVAX token. 

The AVAX token is hard-capped which makes it a scarce asset that is used to pay for fees, and secret the platform through staking. Ultimately the hard cap provides a basic unit of account between the multiple subnets within Avalanche.

  • Polkadot (DOT)

Polkadot is a currency that connects blockchains which allows value and data to be sent across other incompatible networks. For example Bitcoin and Ethereum. It’s also designed to be fast and scalable. 

The DOT token is used for staking and governance; it can be bought or sold on Coinbase and other exchanges. Polkadot was founded by another co-founder of Ethereum. Industry specialists believe Polkadot is looking to eventually dethrone Ethereum.

  • Dogecoin (DOGE)

Dogecoin originated as an alternative to traditional cryptocurrency such as bitcoin. Both the name and logo were based off of a meme that went viral. Dogecoin is intentionally abundant which is different in comparison to bitcoin which is scarce. In 2021, Dogecoin became one of the biggest cryptocurrencies in the market. Dogecoin crypto can be used for payments or sending money.

Divorce and Crypto Assets

Cryptocurrency is considered an asset and as a result, it may be considered separate property or marital property. In some cases, growth in the value of cryptocurrency during the marriage may be considered a marital asset, even if the original purchase took place before the marriage.

This is especially true when both spouses were involved in using cryptocurrency, investing in crypto assets, or planning to rely on crypto to fund future financial ventures. If you’re a crypto investor considering divorce, you should always consult with your lawyer about how you can expect your investments to be affected by the separation.

Bottom Line

The cryptocurrency market could be compared to the Wild West. Although, the U.S. government has been taking on a more active role in overseeing crypto space. Volatility can be intense, with crypto assets fluctuating significantly even in a single day. This leaves individual investors to trade against highly sophisticated players, making it a fraught experience for beginners getting into crypto.

Regardless of your skill level, splitting digital currency may be more complex than traditional investments, such as stocks, bonds, or mutual funds. It is important to be prepared and make sure that crypto is properly discovered and valued in family law matters. If you know or suspect that cryptocurrency will be a part of your divorce, talk to your family law attorney immediately and put together a game plan in your divorce case.

Our team of award-winning 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.

Post Divorce Disputes on National Ex-Spouse Day

Tomorrow is National Ex-Spouse Day, and while it may seem like a strange day to “celebrate”, it’s an opportunity to review your separation and understand your options should you have a post-divorce dispute. 

Celebrated annually on April 14th, the National Ex-Spouse Day is celebrated to encourage the people who have dissolved marriage to forgive their particular former spouses and successfully move beyond any bitterness and anger against them which might be present. But for many, this day isn’t a happy one. Some ex-couples engage in fighting about issues after the final divorce decree, and they need to head back to court to resolve them.

What is a Post-Divorce Dispute?

Also known as a post-decree dispute, post-divorce disputes often arise when one party does not fulfill obligations indicated in the divorce settlement. Often, one ex-spouse determines that the other has violated a court order relating to the divorce, for example, when one ex-spouse fails to pay court-ordered alimony.

Some of the most common issues involve:

  • the payment of college expenses,
  • recalculations of child support and emancipation of children,
  • as well as modifications of maintenance.

Illinois has specific legal standards that relate to each of these issues, and we can help inform you of the law that relates to your post-judgment issue.

Post-Divorce Modifications in Illinois

While divorce decrees in the State of Illinois are considered “final” once they are admitted to the court, there are circumstances that warrant post-divorce modifications.

Whether one party’s financial situation changed and post-divorce child support or spousal maintenance awards must be updated accordingly, or if one of the parents wishes to move a marital child out of state, any official changes to the divorce decree require court intervention.

To request a post-divorce modification, one of the former spouses must file a “motion to modify” the divorce judgment. This motion is typically filed with the same court that issued the original divorce decree. The first step is to file the post-decree change request. You should make it clear what terms you want to be changed, and why. Then:

  1. File your motion with the court clerk’s office that originally issued your divorce decree.
  2. Serve your ex-spouse with the paperwork to notify him or her of the request and hearing date.
  3. Attend mediation or pre-hearing conferences if required.
  4. Appear in court for your hearing.

At the hearing, a judge will hear from both parties and any witnesses who can speak on their behalf. Once the judge makes a decision or final ruling on your motion, you could receive the final order that day; otherwise, it will be mailed to you.

Enforcement and modifications can be just as complicated as the initial settlement agreement, so it’s important to consult a qualified and experienced family law attorney.

How to Celebrate National Ex-Spouse Day

Even if you never envisioned yourself celebrating such a holiday, it’s something that millions of people go through with you and maybe there’s a silver lining to your partnership coming to an end. 

Here are some ways to positively celebrate Ex-Spouse Day this year: 

  • Make it a day that’s really all about you! There’s no day like Ex-Spouse Day to focus on yourself. There’s tons of activities that are even easier to do as a single man or woman without someone else’s opinion. Do what makes YOU happy today. Whether that is a self care day with a massage and a nice dinner or a new outfit, it’s a step forward in your progress and emotional recovery in your situation.
  • Enjoy time with the kids: If you share children with your spouse, today is an opportunity to fully embrace them and appreciate their presence. Go for an ice cream or a movie, and recognize the massive accomplishment it is to raise children.
  • Acknowledge your growth post-divorce: The odds are that you are stronger, more resilient, and more than capable of handling problems you once thought you never could. Maybe you reflect on something that made you insecure in your relationship, that now you have completely conquered. This is proof you can conquer any fear if she was willing to face it head on.
  • Remember that divorce happened, but it doesn’t define you: It may be hard to remember at times, but you are so much more than one single life event like divorce. Your divorce is only part of your story, which means you still get to write the ending. It’s important to release the past so it can stay where it belongs. The past remains in the past. So take the good – take the lessons – and leave the rest.

Final Thoughts

At Master’s Law Group, we are highly experienced in post-divorce disputes and offer a wide range of services that are tailored to our client’s unique needs.

Masters Law Group LLC has a unique depth of knowledge, experience and talent in the family law and divorce field. Are you in need of consultation regarding a post-divorce dispute? Contact us today and we’re here to help you resolve any issue we can. We look forward to hearing from you and supporting you through this time.

How is Cryptocurrency Split in Illinois?

With Cryptocurrencies exploding since 2009, they’re now beginning to show up in divorce courts across the U.S. Painstakingly difficult to trace and value, it’s best to find a divorce attorney well-versed in cryptocurrencies and who understands how to find, value and split cryptos in your divorce case. 

In our current Cryptocurrencies and Divorce series, we discussed situations where cryptocurrency can be found during a divorce settlement as well as the various types of cryptocurrencies and where they can lie if they are being hidden.

If you and your spouse are in the process of a divorce or considering divorce, you may want to tune in. It’s important to have an attorney who understands how volatile crypto is and how to equally divide assets. In order to protect your financial future, it’s absolutely essential to understand how the state of Illinois splits and divides crypto during a divorce settlement.

Here’s a look at how the state of Illinois splits cryptocurrency assets amid divorce.

Cryptocurrencies and Wallets

Crypto first appeared on the scene in 2009, and slowly rose to fame with the public over the course of several years. Since then, divorce courts have seen a large amount of settlement cases dealing with the division of cryptocurrency assets. While there are many different types of crypto on the market, it’s important to recognize some of the most frequently used cryptocurrencies. Some of the most popular include:

You can purchase crypto on exchange networks like Biance, Coinbase or Kraken – some of the most frequently used networks that invest in digital currencies. With low fees, scope for growth, and seamless transactions, it makes it all the more appealing to want to take part in the growing crypto market evolution. 

Splitting Crypto in Illinois

There’s a couple different situations where a judge will look at determining the division of assets in a divorce settlement. For example, how do you assess the value of the crypto you have? It’s important to note that crypto is volatile and prices always fluctuate drastically, sometimes within minutes throughout the course of one day. The price swings can significantly affect the settlement of marital property.

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.

How Masters Law Group Can Help

At Masters Law group we have all cryptocurrency topics covered. If you’re having doubts and suspect that your spouse is hiding crypto and don’t know what signs to look out for, you can find that information here. If you have questions about the different types of crypto and are trying to get acquainted with the market, you can find that information 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.

 

Top 6 Signs Your Spouse is Hiding Crypto

Is my spouse hiding Crypto? We know hiding assets is a penalty-inducing divorce tactic used by many. But in 2022, soon-to-be divorcees are hiding money from family members and authorities using cryptocurrency.

Cryptocurrency nowadays can add new complications to a divorce. Just like any other marital asset, if cryptocurrency, or other digital currency was purchased, or increased in value, during the marriage, it is a marital asset that is subject to distribution in both equitable distribution and community property states.

In the fourth part of our Crypto Currencies and Divorce series, we discussed the situations in which we discussed the situations in which cryptocurrency can be found during the divorce settlement process and also if it can be lost within the settlement. While tracking down the funds isn’t an easy process, this article will give you signs to watch out for.

Here’s what you need to know if your spouse is hiding crypto.Hiding Crypto

1. Bank and Credit Statements

First things first, if you believe that your spouse is hiding cryptocurrency and has used marital money to purchase it, you should take an active role in looking for proof of your suspicions.

Cryptocurrency is usually purchased with liquid cash, so at some point money moves from a bank account into a cryptocurrency exchange. Certain websites function as the entry point for most people interested in obtaining or trading Bitcoin and other digital currencies. Look for popular echange names such as: Coinbase, Binance, Etoro, Coin Switch, Luno and PaxForex. All it can take is one initial transaction in “normal dollars and cents” to enter this new world of Bitcoin, where untold more digital currency can be obtained. 

If you see any crypto activity, however insignificant, it’s worthy to investigate further — especially if your spouse omitted it from the initial deivorce documentation.

2. Crypto Wallets and Private Keys

Crypto keys make for excellent evidence. Each crypto wallet comes with a key that can then be traced to show all transactions associated with the wallet. A sure sign of Crypto activity in the household is the discovery of a crypto key. But not many know what to look for, since the key doesn’t represent a traditional metal object. So what do these keys look like?

A private key is a secret, alphanumeric password/number used to spend/send your bitcoins to another Bitcoin address. It is a 256-bit long number that is picked randomly as soon as you make a wallet.

The degree of randomness and uniqueness is well defined by cryptographic functions for security purposes.

This is how the Bitcoin private key looks:

2zJ4kLf5zgWrnogidDA76MzPL6TsZZY36hpXXssSzNydYXYB9fe

Many of these password keys are stored on a keydrive. If you happen to find this key, take note of it for evidence. Many hide these keydrives in a private and secure place, such as a safe, while others can simply save these password key codes hidden on their laptops.

3. Presence Crypto Exchanges in Apps

See if there are any crypto-related apps installed on shared electronic devices. Look for Bitcoin wallets like Coinbase, Mycelium, Ledger, SoFi, and Trezor, or apps for buying and selling crypto, like CEX.IO or BlockFi.

Any of the common exchanges listed above offer apps for mobile crypto banking. If you share one phone account, you may be able to access the history of all apps downloaded to any phone on your plan. If you are not able to obtain this information on your own, your attorney can add to this to items to be produced during discovery.

4. Loan Applications & Tax Returns

Another area to explore are loan applications and tax returns. If a person is trying to hide assets from you, and they are not disclosing Bitcoin or other cryptocurrencies on their net worth statement, they might record it on a loan application. 

It’s also important to check if your spouse has reported crypto on tax returns. Reporting of digital currency is required by the IRS, even though there are those who fail to do so. In 2014, the IRS declared that virtual currencies are property.

5. Large Online Purchases

For spouses who are hiding currency, they don’t buy the initial crypto to put in their wallet, which in turn, avoids any direct charges made to a bank or credit account. Instead, they connect with a crypto user in one of the many user forums who is willing to accept goods that will be paid in said cryptocurrency. 

The agreement might entail buying items of the crypto owner’s choice on Amazon, and in return, this crypto will be deposited in the owner’s empty wallet, giving them their entrance into this world. It’s important to remember that crypto wallets function completely outside the normal banking system, so no one will be the wiser should this transaction take place — unless you get smart about your spouse’s buying habits. 

Scan Amazon and other online sellers. If you don’t have access to your spouse’s Amazon account, this can be something that your attorney requests to see during divorce discovery.

6. Secretive Behavior with Finances

If you still receive paper statements this is a great way to track down their use of bitcoin and other cryptocurrencies. If the paper trail used to show up in the mail and then suddenly stopped – that’s a red flag and should raise some suspicion. 

It’s important to have passwords to all of your shared online bank and credit accounts, but if they’ve been changed, that’s again, another red flag. Call your bank and credit card company to request copies be sent directly to you for all joint accounts. Let your attorney know as soon as possible so that steps can be taken to make your spouse produce documentation of all joint accounts.

Final Thoughts

If you know or suspect that cryptocurrency will be a part of your divorce, talk to your family law attorney immediately and put together a game plan for dealing with it. 

At Masters Law Group, 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 here today for more information, or to schedule a consultation