Tag Archive for: Chicago family law

The Rise of the Crypto Divorce

Talk to anyone who’s gone through divorce and they’d likely say the experience was no walk in the park. If you’re facing a divorce in 2022, there’s a new asset that needs to be accounted for – Cryptocurrencies. Here’s what you need to know.

In the last few years, the cryptocurrency market has exploded. It’s hard to go a day without hearing about it in the news. But what does that mean for your divorce?

Well, if you’re dealing with a crypto-rich spouse, it can mean some serious headaches. Crypto assets are notoriously difficult to trace and control—and it doesn’t help that there are still plenty of legal gray areas when it comes to cryptocurrencies themselves. That means they’re not always easy to deal with in court cases like divorce proceedings.

When it comes to discovering hidden assets such as cryptocurrencies, Masters Law Group has your back. Here’s everything you need to know about crypto assets in divorce cases so you can make sure you’re getting what’s fair.

Cryptocurrency Basics

Cryptocurrency is a form of digital currency that uses the technology of cryptography to secure its transactions. It is designed to be used as a medium of exchange, like money, but it can also be used to transfer data securely.

One of the early appeals of cryptocurrency was that it provided the opportunity to transfer large amounts of wealth anonymously without any government or institutional interference. These days, cryptocurrency is used by some owners to take care of routine matters such as paying bills, buying goods, and others use it as collateral to obtain loans. Many others are purchasing it as a form of investment.

The most popular form of cryptocurrency is Bitcoin. Some examples of other digital currencies include Litecoin, Ethereum, Ripple, Zcash, Bitcoin Cash, Cardano, among others. 

Why is Cryptocurrency Relevant Upon Divorce?

Cryptocurrency is an asset to be considered in the financial settlement. The reality is that it is not a feature of mainstream divorce yet. This is because a large proportion of the general public still views cryptocurrency as too much of a gamble and the difficulty of identifying whether or not someone holds cryptocurrency.

However, with the current growth in popularity we can expect to see more cases involving cryptocurrencies as assets for divorce settlements. Cryptocurrency is increasingly being used as an alternative form of payment and investment, so it’s important to understand how it could be treated in your divorce case.

Looking For Cryptocurrency Assets

If you suspect that your spouse/civil partner is hiding cryptocurrency from you, there are steps you can take to investigate the matter.

First, make sure that both parties provide full and frank disclosure. This means that both parties should disclose all of their assets, including cryptocurrency. If one party suspects that the other isn’t disclosing cryptocurrency in the course of their divorce proceedings, then preliminary investigative works need to begin.

The standard disclosure process requires each party to disclose bank statements. These should be carefully examined to see if there are any transactions or proof of purchase of cryptocurrency i.e. exchanges or trading platforms. If the bank statements aren’t showing anything, then you can  request your spouse’s credit card statements. You also can make a specific request for disclosure of all apps on their spouse’s smartphone.

Agreements on Dividing Crypto Assets

The rise of cryptocurrency has created a whole new world for the courts. With its fluctuating value, crypto assets can represent substantial sums of money that are not always easy to track down. This can lead to court cases where one spouse is accused of hiding assets from their spouse, or where an unscrupulous party will try to use the anonymity of crypto assets to hide their own assets.

When a couple gets divorced, it can be difficult to determine how to divide the assets. In the case of cryptocurrency, however, the process is fairly straightforward.

  • Simple Division: You receive a share of the cryptocurrency in its current form.
  • Custodial Holding: If you decide to not set up a cryptocurrency account, you can find the custodial approach suitable. A third-party custodian can transact in cryptocurrency, receive your share and hold it until the divorce is final.
  • Cryptocurrency Owner Liquidation: The former spouse who owns the asset will convert the other party’s share to cash. The digital currency’s value on the day of sale determines how much money you receive.
  • Liquidation With No Claim Upon Remaining Cryptocurrency: This approach starts the same as #3. However, both parties have agreed in advance that the original owner of the cryptocurrency now has full title to the remaining asset and does not owe the former spouse any remaining crypto.

Regardless of whether you decide to keep your cryptocurrency or sell it off, it’s important to remember that there is no loophole when it comes to divorce proceedings. The courts are used to the volatility and fluctuating value of shares and other types of assets—cryptocurrency is a whole new phenomenon.

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 – Cryptocurrency and Divorce Lawyers

When you are facing the divorce process in Illinois and are dealing with cryptocurrency asset division, do not hesitate to call the attorneys 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 today for more information, or to schedule a consultation.

Masters Law Group Recognized in the 2023 Edition of “Best Lawyers in America”

Masters Law Group is a Chicago family and divorce law firm focused on solving problems and achieving the best possible result for our clients. We’re proud of our industry achievements, now including being recognized for professional excellence in the 29th edition of The Best Lawyers in America® in two categories.

As part of the 2023 selection of distinguished firms, Masters Law Group was regionally ranked in two practice areas, Family Law and Family Law Mediation. 

Best Lawyers in America is the oldest and one of the most respected peer-review publication in the legal profession. Best Lawyers lists are compiled based on exhaustive peer-review evaluation. Lawyers are not required or allowed to pay a fee to be listed; therefore inclusion in Best Lawyers is considered a singular honor.

This recognition honors the professional accomplishments of the top tier legal talent in the country who were selected by their peers through Best Lawyers’ rigorous and peer-reviewed selection process. More than 12.2 million evaluations were analyzed, resulting in the recognition of only 5.3% of lawyers in the United States. Achieving this recognition signals a unique combination of quality law practice and breadth of legal expertise.

Masters Law Group is delighted to once again receive such recognition. 

About Masters Law Group

Located in Chicago, Illinois, Masters Law Group handles family law matters in Cook County and surrounding counties. Masters Law Group concentrates in the area of domestic relations, which includes divorce, allocation of parental responsibilities, child support and related family matters.

Our recent recognitions in Family Law and Family Law Mediation highlights our experience, dedication and talent in these fields.

Our Attorneys

Best Family Law Attorney

Erin E. Masters (Attorney / Family Law Mediator) and Anthony G. Joseph (Attorney / Guardian Ad Litem/Child Representative) both have extensive experience and knowledge in family law and family law mediation.

Ms. Masters’ recent recognitions include in Family Law and Family Law Mediation, and has represented a variety of clients, both pre-decree and post-decree. 

“We are honored that Masters Law Group has been recognized by Best Lawyers® for the sixth consecutive year.” commented Managing Partner Erin Masters. “We thank all our fellow attorneys in the Chicago Metropolitan area for including us in this prestigious list as well as our attorneys and staff for their hard work and dedication in serving our clients.”

In addition to representing clients, Ms. Masters is also a court-appointed Child Representative and has experience advocating for children in these high-conflict matters. Further, she has also been appointed by the Circuit Court of Cook County to mediate complex family law cases.

2023 Best Lawyers

Anthony G. Joseph has been recognized for his excellence in Family Law and is an active trial lawyer whose practice focuses exclusively on Family Law and on the list of approved Guardian Ad Litem/Child Representatives for the Domestic Relations Division of the Circuit Court of Cook County. He has an emphasis on International Child Abduction and cross-border custody issues pursuant to the Hague Convention of 1980 and the UCCJEA. Mr. Joseph also publishes in the area of civil litigation.

WORK WITH THE BEST

With a long history of awarded recognitions in Family Law, Masters Law Group LLC has a unique depth of knowledge, experience and talent in the Family Law and Divorce field.

Masters Law Group is dedicated to understanding your individual needs and helping you work through stressful situations in the Family Law and Divorce fields. They move through settlement negotiations, mediation or litigation with their clients’ assurance and well being in mind.

Schedule a consultation here to speak with an experienced attorney regarding your family law matter today.

 

 

International Child Custody: How Masters Can Help

Every year, children are wrongfully removed from the United States or retained outside of the U.S. in violation of parental custody rights. Whether trying to identify risk factors or your child/children have been removed from their habitual residence, knowing your legal options through The Hague Convention could prove detrimental in protecting victims involved. 

When Illinois courts determine custody arrangements, they ultimately consider the best interests of the child/children involved. However, what are often relatively simple custody matters can quickly become complicated when one parent moves out of the state or out of the country. Especially unlawfully.

If you need legal representation to protect your rights or the rights of your child, we can help. At our downtown Chicago law office, we represent parents and children in a variety of complex international custody disputes. Here’s what you need to know.

Negotiating International Child Custody Disputes

Parents who wish to move out of the country may do so by seeking a custody modification just as they would if they were moving out of state. Complications arise when a parent moves out of the country before a custody order is finalized or when a parent does so in violation of an existing order. When a parent moves out of the country in direct violation of a custody order, he or she is committing international parental child abduction.

The Hague Convention on the Civil Aspects of International Child Abduction provides an expeditious method to return a child internationally abducted by a parent from one member country to another. The powerful international treaty that can yield beneficial results when it is implemented correctly and appropriately.

The Hague Convention

Many countries subscribe to the Hague Convention, which facilitates reciprocal agreements when it comes to custody. Although the Hague Convention does not ultimately decide custody cases, it does determine which jurisdiction or which country should hear the case. Generally, this is where the child had established familiar roots before his or her removal or abduction or, as the Convention calls it, the child’s “habitual residence.”

Because many countries do not have formalized laws regarding international child abductions and because there are so many variables involved with each case (such as whether or not both parents want custody), there are no hard-and-fast rules for international child abduction cases. Each situation must be evaluated on its own merits and in light of that particular nation’s laws and regulations regarding custody matters.

International parental abductions of U.S. children have been reported in countries all over the world, including Australia, Brazil, Canada, Colombia, Germany, India, Japan, Mexico, Philippines, and the United Kingdom. A parent who is left behind when a child is abducted to another country faces daunting obstacles to finding and recovering the child.

A History of Success Serving Clients In Illinois and Internationally

Masters Law Group 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 United States, from Washington to Wisconsin; so you can rest assured knowing the experienced Masters Law Group attorneys are fighting for you and your family. Our attorneys understand the laws in these highly sensitive cases. Their priority is to ensure the kids return to safety and that they have the opportunity to exert their rights and obtain justice. 

Here are just a few of our featured Huage Cases:

How Our Firm Can Help

If you are in need of an international child abduction lawyer, we can help. The legal system is a complicated and confusing place. That’s why we’re here—to make sure that you understand your rights and options, so that you can make the best possible decisions for your family.

We can represent you if:

  • You live in the United States and your child has been abducted into a foreign country.
  • You live anywhere in the world and your child has been abducted into the United States.
  • You have been accused of international child abduction and need a lawyer to protect your parental rights.

We will carefully examine the facts to determine the strength of your case. We will give you straightforward advice so that you know exactly where you stand in the eyes of the law.

To learn more about your options, contact us to schedule a one-on-one appointment with our experienced lawyers, Erin E. Masters and Anthony G. Joseph. We understand that your children are your top priority. We will work aggressively to advocate on their behalf.

Contact Masters Law Group Today

Illinois is a community property state, which means that all of the marital property is divided equally between the spouses. This can have a significant impact on child custody arrangements, especially if one spouse intends to leave the state or country.

If you have found yourself in a situation where your former spouse has unlawfully fled the country with your child, you should contact your attorney right away. At Masters Law Group, we can handle the process of contacting domestic and international governments to ensure that your rights are being protected.

Our attorneys 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”). Our experienced attorneys will provide you with detail-oriented representation as each case is unique. Contact our Chicago office to schedule a consultation today.

I Need a Divorce. Help!

If your marriage is in question, you may be the one who is deciding “Should I stay or should I go”? While the process can seem overwhelming, there are things you can do to get through this difficult adjustment. If you’ve decided divorce or separation is the only way forward, here’s what you should know.

If you have decided to get divorced, you may have concerns about the cost, time commitment, and stress associated with the process. Which is why Masters Law Group works tirelessly in order to make the divorce process easier on you, for you and your children.

If possible, an amicable relationship with your ex can lead to a more straightforward divorce, because it won’t (usually) involve going to trial. An amicable or somewhat amicable divorce will often result in a quick(er) divorce.

As an ordeal that can be draining mentally and financially, it’s important to be prepared. Whether you are in search of Divorce Mediation, a Contested Divorce, Uncontested Divorce or Legal Separation, here’s what you need to know.

Is a Quick Divorce Possible?

Divorce is a stressful experience, and it’s important to get through it as quickly as possible in order to mitigate stress on everyone involved. Especially the children. The divorce process does not have to take years or even months. If you’re able to come to an agreement with your spouse about custody, visitation, spousal support, and division of property, your divorce can proceed through divorce court rather quickly.

The easiest type of divorce, which takes the least amount of time, is called an uncontested divorce. In Illinois, this is also referred to as “dissolution of marriage”. This relatively fast divorce happens because all of the major issues have been agreed upon by you and your spouse. Both parties agree on all the key terms of the divorce, including: Dividing marital property, Child custody and Parenting Time schedule.

Do Uncontested Divorces Take Less Time Than Contested Divorces?

A contested divorce is one where the parties cannot agree on some or all issues. It may involve a trial, and it may involve lengthy settlement meetings. It may also involve digging into your spouse’s finances, which takes a lot of time and energy.

There are many reasons why divorce can be contested. Typically, one party feels that they have not been treated fairly in some way during the divorce process and wants to fight for what they feel is their right. If you are going through a contested divorce, it is important to know what your options are so that you can make an informed decision about how to proceed with your case.

An uncontested divorce, however, takes a lot less time because you agree with your spouse on various issues. Here are a few examples:

  • Custody
  • Visitation
  • Child support
  • Spousal support
  • Division of assets
  • Life and health insurance policies

In the long run, an uncontested divorce will save you time and money in legal fees, will reduce stress, and will get you through the court system much faster than a contested divorce.

Divorce Mediation

Anger. Resentment. Bitterness. These are some of the feelings that many people associate with family law issues. It is often true that litigation – the traditional mode of dispute resolution – breeds these kinds of feelings. Fortunately, there are other ways to deal with family disputes that lead to much happier, healthier results: Mediation.

Mediation is considered an alternative dispute resolution process where an impartial or neutral mediator helps guide you and your spouse in settlement efforts – hopefully helping you reach a final agreement.  Unlike judges, a mediator has no authority to make decisions for you or your spouse. Their job is to keep you and your spouse’s focus on your needs and interests instead of fault and rights.

When a couple begins divorce mediation, they either choose the mediator in advance or one may be appointed by the court, with the court deciding how to split the costs.  Both spouses provide documentation to support their viewpoint regarding disputed issues, while the mediator works with both sides to find a resolution. The goal of the mediator is to reach an agreement between the two parties, therefore it is critically important to work with your divorce mediator attorney to ensure that the proposed solution is truly fair and equitable to you.

Legal Separation

Your first thought may immediately go to divorce, and that is understandable due to it being the most common approach to seemingly irreconcilable differences. However, you have another option that is less permanent that is worth considering. There is a large difference between deciding to be physically separated from your spouse and legally separated from them.

A divorce means your marriage is 100% legally over, the court can assist in determining the allocation of parental responsibilities, parenting time, and child support. The court can also determine spousal support and divide property. Couples that have decided they can’t reconcile may be ready for an immediate divorce. However, even if you believe you will ultimately file for a divorce, a legal separation is worth to consider.

A legal separation is a less permanent option, meaning you’re living apart but still legally married. If you don’t think you can live with your spouse, you can file for legal separation. Obtaining a legal separation does not prevent you or your spouse from obtaining a divorce later. Legal separation is less emotionally taxing than divorce because the permanence of a divorce isn’t there which still allows for the legal relationship to exist between the married couple. The court can order a separation between you and your spouse, and it would include similar aspects to a divorce such as allocation of child support and custody arrangements.

Getting Started

Part of divorcing is figuring out who gets what. A good place to start is to make a list and keep proper documentation of personal items that belong only to you, such as jewelry, family heirlooms, or photos and papers that have special meaning to you. If necessary, give these items to a trusted family member or friend for safekeeping.

It’s essential to have your financial paperwork organized and in one place, such as a file or binder. Start by collecting and making copies of your legal documents, including:

  • Marriage documents: Agreements and marriage license
  • Tax returns: Federal and state tax returns for the past five years
  • Real estate: Deeds, appraisals, cost basis of home, mortgages, rental property records
  • Business documents: Receipts, tax returns, payroll information, and any registrations, patents, or trademarks
  • End-of-life plans: Will, power of attorney, advance healthcare directive

If you have trouble finding any documents (or your spouse is making it difficult), your attorney can help.

Do You Need an Attorney for Divorce?

Hiring an experienced legal advocate that is well-versed in family law will be the best option for you moving forward. They can help explain this process to you and is the greatest way to ensure the best possible outcome that is custom and unique to your family’s situation.

Illinois Legal Aid Online provides a  guided interview that will ask you a series of questions related to this topic and then the program will complete the forms for you. It is free to use.

To see the overall process of getting a divorce in Illinois when you have children, please  click here.

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.

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.

 

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.

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.