Zimmerman & Walsh, LLPFindLaw IM Template2024-03-15T21:53:10Zhttps://www.zimwalsh.com/feed/atom/WordPress/wp-content/uploads/sites/1100538/2020/01/cropped-site-icon-32x32.pngOn Behalf of Zimmerman & Walsh, LLPhttps://www.zimwalsh.com/?p=483452024-03-08T22:53:17Z2024-03-15T21:53:10ZOutlining a plan
Creating a comprehensive financial plan that includes budgeting, asset evaluation, debt management and long-term financial goals can help you navigate the financial challenges of divorce. You may want to look into how to protect assets, minimize tax implications and secure financial stability post-divorce.
It is vital to understand how your finances could change after divorce. For example, you may need to pay spousal support or child support. You should understand how the state calculates child support if you have kids. According to the Illinois Attorney General, various factors can affect how much a parent has to pay, such as the number of kids and the income of each parent.
Setting goals
Developing a clear understanding of one's financial situation and setting realistic financial goals are key steps in the divorce planning process. It is important to gather all relevant financial documents, including bank statements, tax returns, property deeds and investment accounts. This can help ensure a thorough evaluation of assets and liabilities. By organizing financial information, people can make informed decisions that support their financial well-being during and after divorce.
Taking steps to establish financial independence can help individuals transition to single financial status with confidence. For example, opening individual bank accounts and creating a budget based on post-divorce income. By proactively managing finances, you can navigate the financial complexities of divorce successfully.]]>On Behalf of Zimmerman & Walsh, LLPhttps://www.zimwalsh.com/?p=483432024-02-29T21:05:47Z2024-03-01T21:05:32ZLife events
Major life events such as marriage, divorce, the birth of children or grandchildren, or the death of a spouse or beneficiary can significantly impact your will. Updating your will ensures that it reflects your current situation and desires.
Asset changes
Over time, your financial situation may evolve. You may acquire new assets, such as property, investments or valuable possessions or you may dispose of existing ones. Updating your will allows you to account for these changes and ensure that your assets get distributed according to your wishes.
Beneficiary changes
Relationships with beneficiaries may change over time. You may want to include new ones, remove individuals who are no longer relevant or adjust the distribution of assets among them. Updating your will enables you to reflect on your current intentions regarding inheritance.
Legal requirements
Laws and regulations governing wills and estates may change. Updating your will ensures that it complies with current legal requirements, minimizing the risk of disputes or challenges to its validity.
Executor or guardian selection
If the individuals you previously designated as executors or guardians are no longer suitable or available, you should update your will to appoint new ones. This ensures that you entrust responsible individuals with managing your estate or caring for your dependents.
By regularly reviewing and updating your will, you can provide peace of mind for yourself and your loved ones, knowing that your affairs are in order.]]>On Behalf of Zimmerman & Walsh, LLPhttps://www.zimwalsh.com/?p=483392024-02-16T17:55:34Z2024-02-16T17:55:34ZOwnership of the home
The first consideration is to determine who has legal ownership of the property. If one spouse owned the residence before the marriage or acquired it through inheritance or a gift during the marriage, they may have a stronger claim to remain in the home. However, if the property is jointly owned, both spouses typically have equal rights to reside there unless a court decides otherwise.
Custody arrangements
The presence of children can impact the decision about who stays in the home. Courts often prioritize the well-being and stability of the children, aiming to minimize disruption to their lives. Therefore, the court may grant exclusive use of the residence to the custodial parent.
Financial considerations
Financial factors also play a big role in determining who can remain in the home. If one spouse can afford to maintain the residence independently, the court may allow them to remain, especially if they have been the primary breadwinner. If neither spouse can afford the property on their own, they may need to sell it and divide the proceeds between them.
When deciding who gets to stay in the home, courts strive to reach a decision that is fair and equitable to both parties.]]>On Behalf of Zimmerman & Walsh, LLPhttps://www.zimwalsh.com/?p=483372024-01-30T03:20:34Z2024-02-02T03:19:43Z1. Funeral instructions
Wills are typically read days or even weeks after a person's passing, making them an impractical place for immediate funeral instructions. Instead, discuss your funeral arrangements with your loved ones directly or leave these instructions in a separate document that can be easily accessed when needed.
2. Jointly owned property
Including jointly owned property in your will can lead to confusion and legal complexities. Assets held jointly typically pass directly to the surviving owner(s) outside of the probate process. Attempting to dictate the distribution of jointly owned property may not be legally effective and could cause disputes among heirs.
3. Conditions on inheritances
While it is understandable to want to incentivize certain behaviors or accomplishments among your heirs, imposing conditions on inheritances in your will can sometimes create more problems than solutions. Conditions that are overly restrictive or difficult to enforce may lead to resentment and legal battles among beneficiaries.
4. Digital assets
In today's digital age, it is important to plan for what will happen to your online accounts and digital assets after your passing. However, including passwords and login information in your will can pose security risks. Instead, create a separate document or use a digital asset planning service to manage your digital estate securely.
By being aware of what not to put in your will, you can ensure that your final wishes get carried out smoothly.]]>On Behalf of Zimmerman & Walsh, LLPhttps://www.zimwalsh.com/?p=483352024-02-22T15:28:27Z2024-01-31T20:15:10ZEstate planning is only for the wealthy
It may shock you to learn that only 46% of individuals over 55 years of age had any kind of estate plan in 2023, and many think only wealthy individuals need a will or estate plan.
However, if you have personal belongings, savings, digital and other assets, you should consider planning your estate. Without a plan, the state may distribute your assets according to default laws, which might not align with your wishes.
Estate planning is only for the elderly
Unforeseen circumstances, such as accidents, illnesses or unexpected events, can affect individuals of any age. Having an estate plan in place helps ensure that those handling your estate know and follow your desires.
Only married couples need estate plans
Everyone, regardless of marital status, should have a plan in place. Estate planning is not just about distributing assets to heirs. It also involves decisions about healthcare, guardianship and more. Single individuals need to consider these aspects just as much as married couples do.
Creating a will is sufficient
While a will is an important component of estate planning, it is not the only document needed. A comprehensive estate plan may include a power of attorney, a living will and other documents. Each document serves a unique purpose, contributing to a well-rounded estate plan that covers various aspects of life and death decisions.
Estate planning is a dynamic process that you can adjust as your life circumstances change. Starting early allows you to prepare for the unexpected and adapt your plan as needed.]]>On Behalf of Zimmerman & Walsh, LLPhttps://www.zimwalsh.com/?p=483332024-01-18T19:40:22Z2024-01-18T19:40:22Z1. Understand your financial situation
Before embarking on the divorce journey, it is important to have a clear understanding of your current financial situation. Take stock of your assets, liabilities and income. Create a detailed budget that outlines your monthly expenses. This knowledge will empower you to make informed decisions during the divorce process.
2. Build an emergency fund
Divorce often brings unforeseen expenses, and having a financial safety net can provide much-needed stability. Start building an emergency fund by setting aside a portion of your income regularly. Aim to accumulate at least three to six months' worth of living expenses. This fund can serve as a cushion during the transitional period.
3. Establish individual credit
In many marriages, financial accounts are joint, making it challenging to establish individual credit. Begin the process of building your credit by opening personal accounts in your name. This includes credit cards, bank accounts and other financial instruments. A solid credit history will not only contribute to your financial independence but also facilitate smoother transitions as you navigate post-divorce life.
4. Plan for post-divorce expenses
Anticipate the financial changes that divorce may bring to your life. Consider factors such as housing costs, allocation of parental responsibilities and potential spousal support. Having a clear plan for managing post-divorce expenses will enable you to make informed decisions about your financial future.
Even with a low rate of 1.3 divorces per 1,000 population, Illinois still has its fair share of couples separating. While a challenging process, staying on top of finances can help lay the groundwork for a stable future.]]>On Behalf of Zimmerman & Walsh, LLPhttps://www.zimwalsh.com/?p=483312024-01-11T19:56:04Z2024-01-11T19:56:04Z1. Establish a will
An important aspect of estate planning is the establishment of a will. Regardless of age or financial standing, having a document outlining where assets should go in the event of unforeseen circumstances is key. A will ensures that personal belongings, financial assets and other possessions end up in the right place, providing peace of mind and avoiding potential complications.
2. Designate beneficiaries and keep them current
Designating beneficiaries on financial accounts, insurance policies and retirement plans is necessary during estate planning. Younger people may overlook the importance of keeping these designations current. Life circumstances change, whether through marriage, the birth of children or other significant events.
3. Make health care plans
While it may seem premature, establishing powers of attorney and drafting health care directives is important for younger generations. These documents grant trusted individuals the authority to make financial and health care decisions on someone else’s behalf. Taking these steps early provides protection, ensuring that someone the individual trusts can make decisions aligned with their preferences.
According to Kiplinger, 78% of millennials consider building multigenerational wealth important. In contrast, just 45% of members of older generations say the same. Taking these steps is about planning for the future, and it is also about embracing a responsible, forward-thinking approach to financial well-being.]]>On Behalf of Zimmerman & Walsh, LLPhttps://www.zimwalsh.com/?p=483292023-12-27T19:55:06Z2023-12-27T19:55:06Zhave wills at all. Those without wills may need to draft them and designate guardians within them after a divorce to protect the interests of their children.
Distributing property and assets
Divorce often involves the division of marital property. This can impact your overall estate. Reassessing your assets, including real estate, investments and personal property, is key. Updating your estate plan to reflect changes in ownership and distribution ensures that your wishes align with the post-divorce reality.
Addressing changes in relationships
A divorce may lead to changes in relationships and dynamics. Revisit your health care directives and power of attorney documents to ensure the designated individuals align with your current relationships and support network. Making these adjustments provides clarity. It also helps avoid potential conflicts in the event of a medical emergency.
In the aftermath of a divorce, taking the time to revisit and revise your estate plan helps provide peace of mind for the future. It also makes things easier on your loved ones after your passing.]]>On Behalf of Zimmerman & Walsh, LLPhttps://www.zimwalsh.com/?p=483272023-12-12T17:42:12Z2023-12-12T17:42:12ZHow a life estate works
A life estate is a legal arrangement that allows a homeowner to share ownership of a property with someone else. The homeowner, as the life tenant, maintains full control and use of the home as long as the tenant lives. The other person is the remainderman, who receives ownership of the home after the tenant has died.
Creating a life estate involves filing a special deed, called a life estate deed. This document names the life tenant and remainderman. It establishes that the tenant is the owner for life, but will pass the ownership interest to the remainderman following the death of the tenant.
The positives of using a life estate
Without the need for probate, establishing a life estate allows you to save time and legal costs compared to using a will. Additionally, a life estate guarantees you a place to live since the deed specifies your lifetime rights over your property. It also provides certainty that your chosen heir will eventually inherit the home.
Downsides of a life estate
Part of the problem with a life estate is that the life tenant cannot sell the home or take out loans without permission from the remainderman. You give up certain amounts of control over the residence due to the arrangement. It is usually not possible to change or revoke a life estate without consent from both parties.
In addition, a life estate does not protect a remainderman from debt. Creditors can place liens on the home. Finally, if the remainderman dies before the tenant, the ownership share passes to the heirs of the remainderman. This development means the tenant loses control over the eventual recipient of the home.
Life estates allow homeowners to guarantee eventual inheritance of their property while still living on it. However, the inability to change course down the road may necessitate further estate planning to add protections.]]>On Behalf of Zimmerman & Walsh, LLPhttps://www.zimwalsh.com/?p=483252023-12-06T01:57:44Z2023-12-06T01:57:44Z1. Income adjustments
Following a divorce, your household income is likely to change. Whether due to the division of assets or adjustments in maintenance and allocation of parental responsibility, it is important to have a clear understanding of your post-divorce financial standing. Take stock of your income sources, factoring in any potential changes, and create a realistic budget that aligns with your new financial reality.
2. Asset division
The division of assets is a central aspect of divorce, and it can significantly impact your financial well-being. From the family home to investments and retirement accounts, assess the value of each asset and understand their division. Prepare for potential trade-offs, and consider the long-term implications of asset division on your financial goals.
3. Debt management
Divorce often involves the distribution of debts acquired during the marriage. From mortgages and credit card balances to loans, understanding and managing these financial obligations is a must. Develop a clear plan for debt allocation, and work toward a fair distribution that considers both parties' financial capacities.
4. Insurance considerations
From health insurance to life and property insurance, update your policies to reflect your new circumstances. This includes removing your ex-spouse from policies and ensuring that you have adequate coverage for yourself and any dependents. Overlooking these adjustments could lead to potential financial risks down the road.
In 2021, Illinois had a divorce rate of 1.3 divorces per 1,000 population. While every divorce is different, approaching the financial implications of it with a strategic mindset is important for a smoother transition.]]>