Financial Experts Are Encouraging Wealthy Clients to Divorce Before 2019 – Is It Sound Advice?

Illinois divorce lawyersDivorce can be an expensive process, and there are many financial pitfalls that can further increase its cost. For the wealthy, things are about to get even riskier. Starting in 2019, the tax credits afforded to those paying alimony will be gone, and that can lead to some significant financial losses. The cost is so great, in fact, that many financial advisors are telling their clients to get divorced before the beginning of next year. Unfortunately, this may not be the best option for your case.

For the Love of Money – Rushing Your Case Could Have Severe Consequences

Money is one of the biggest and most frequent sources of contention in divorce – and for good reason. You may already have to scale back your life to accommodate the division of assets that typically occur in a divorce. What is more, you may be ordered to pay alimony to your former spouse. Should this happen, you may want to try and avoid the loss of the tax credit.

Unfortunately, if you rush things, you may make an even bigger mistake. Perhaps you may be so rushed that you fail to ensure your business is properly valued. As such, you may end up having to sell it, or you may lose more of your other marital assets. Alternatively, you may make decisions that are not in your best interest, such as selling the family home rather than using it as trade-out for a more valuable asset (i.e. projected business or investment profits, a portion of your retirement account, etc.). You may even make decisions to appease your ex-spouse’s requests, just to complete the divorce faster. Sadly, doing so could have irreversible, long-term consequences, such as:

  • Extreme financial loss;
  • Reduced decision-making power in your child’s life;
  • Business losses (including complete closure);
  • Losing the right to intellectual property;
  • Excessive and increased alimony payments;
  • Less time with your children; and
  • Being unable to retire as comfortably as you had planned.

None of this means that you cannot expedite your divorce; it simply shows that a rushed divorce may not be the right path. Instead, parties should consult with their lawyer to determine what course may provide the moneyed party with the best possible outcome.

Contact Our DuPage County Divorce Lawyers

At Stock, Carlson, Oldfield & McGrath, we work hard to protect the financial well-being of our clients. Learn more about how our seasoned DuPage County divorce lawyers can help to mitigate the potential financial losses Illinois divorce. Call 630-665-2500 and schedule your confidential, personalized consultation with our offices today.

Source:

http://fortune.com/2018/07/09/trump-tax-reform-alimony-deductible/?xid=gn_editorspicks

 

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