Law Offices of Pepi Camerlingo, P.C.

2 types of marital asset dissipation

Wed, 16 Aug 2023 06:53:00 GMT

2 Types Of Marital Asset Dissipation

On Behalf of Law Offices of Pepi Camerlingo, P.C. undefined

While most people go into a marriage expecting it to last, life has a way of not always working out.

One issue that parties may encounter during a divorce proceeding is “dissipation” of marital assets. Dissipation, as defined by the Illinois Marriage and Dissolution of Marriage Act is the use of marital property for one’s sole benefit for a purpose unrelated to the marriage, while the marriage is experiencing or undergoing an irretrievable breakdown. Dissipation can manifest in various forms but some of the key indicators of a spouse’s intentional undermining marital assets include the following:

1. Overspending recklessly / increase in lifestyle expenditures

An uncharacteristic increase in a spouse’s spending habits, particularly on expenditures for leisure, entertainment, and other lifestyle purchases (dining out, travel and/or vacations, clothes, gambling, adult entertainment, frequent cash withdrawals) may be reason to take a closer look at your financial records to determine if a claim for dissipation needs to be filed. After all, when a spouse has historical spending habits during the entirety of the marriage, and then begins to demonstrate spending habits that are entirely new or different, during the pendency of a divorce, he or she is in turn creating a distorted picture of what the marital estate actually is.

2. Selling assets and/or moving money outside of known marital accounts

In some instances, a spouse will try to hide, remove, or relocate assets to reduce the value of a marital estate. If you notice large withdrawals of funds leaving marital accounts, with no explanation of where the funds went, it is best to alert your attorney to the curious conduct so your attorney can take steps to account for all funds moving in and out of the marital estate and restrain further depletion of the marital estate if necessary and appropriate under the circumstances.

It is important to note that it is spouse alleging dissipation that first has the burden to make a preliminary showing that dissipation has occurred before the burden shifts to the spouse charged with dissipation to refute the accusations. If the burden shifts to the spouse charged with dissipation, then he or she must prove by clear and convincing evidence how any such funds were spent.

There are other requirements to filing a proper Notice of Intent to Claim Dissipation, as set forth in the Illinois Marriage and Dissolution of Marriage Act. If you believe dissipation may be an issue in your matter, please do not hesitate to contact us to discuss further.

College contribution requirements in IL

Wed, 17 May 2023 02:37:00 GMT

College contribution requirements in IL

On Behalf of Law Offices of Pepi Camerlingo, P.C. | undefined | Child Support

As a parent, you want to see your children succeed and do well in life. Both parents have a duty of financial support for their children until they turn 18 or graduate high school with 19 years of age as the cutoff.

In Illinois, divorced parents have a duty to contribute to their children’s post-high/college educations based with certain statutory limitations pursuant to Section 513 of the Illinois Marriage and Dissolution of Marriage Act ( the educational expense requirements ).

Modification requests

Parents can either agree as to their financial contributions to their children’s post-high school/college educations or either parent may petition the court to determine this issue. You should do so as soon as you know there is a disagreement and where your child will be pursuing their post-high school education.

Educational expenses

The contributions may cover tuition and other educational expenses for both private and public colleges as well as trade schools and professional or vocational training. The law includes housing, reasonable living expenses, books and supplies and medical and dental insurance, as well as entrance exams, application fees and college preparation courses.

However, Section 513 of the law caps these expenses to what they would cost at a public university, e.g., the University of Illinois.

Court considerations

A judge will evaluate your income and your financial resources to determine each parent’s obligation. The court may also evaluate your children’s current savings, scholarships and other resources as well as their academic performance.

By law, these payments typically terminate when your child turns 23, receives a bachelor’s degree, gets married or falls below a “C” average unless otherwise agreed between the parents.

As you plan for your future, you should also prepare for the post-high school/college educational expenses for your children.

When should you consider a prenuptial agreement?

Wed, 01 Feb 2023 03:23:00 GMT

When should you consider a prenuptial agreement?

On Behalf of Law Offices of Pepi Camerlingo, P.C. | undefined | Child Support

While you may be hesitant to think about divorce before getting married, that is the ideal time to do so. It might be the only opportunity you have to protect your personal assets.

A prenuptial agreement is an excellent tool for designating which assets you want to keep separate from marital property. Once you get married, maintaining individual assets can be challenging. If you find yourself in the following situations, a prenuptial agreement might be beneficial.

You own a business

Operating a business takes a lot of dedication and money. If you started your business before getting married, and you intend to continue running the business, consider these scenarios:

Do you want your new spouse to have partial ownership of the company?
If you die, do you want your spouse to obtain the business, or should it belong to other partners or family members?
Do you want your spouse to receive financial support based on the business’s profits or future earning capabilities if you divorce?

If you answer no to these questions, a prenuptial agreement can prevent these situations.

You have children from a previous marriage

When you have children and remarry, you have two families to provide for. A prenuptial agreement allows parents to delegate life insurance settlements and disburse assets to their children despite marital property laws granting assets to the new spouse.

Without prenuptial agreements, property may transfer to the new spouse, who can then gift or award the assets to anyone. If this happens, the new spouse can prevent the children from receiving any of their parent’s property.

Knowing that prenuptial agreements protect hard-earned assets should encourage more people to realize the benefits of having one.

What are the four types of spousal maintenance after divorce?

Thu, 22 Dec 2022 21:02:00 GMT

What are the four types of spousal maintenance after divorce?

On Behalf of Law Offices of Pepi Camerlingo, P.C. | undefined | Child Support

The intention of spousal maintenance, commonly referred to as alimony, is to help one spouse maintain the standard of living they had during the marriage.

Things such as health, age, education, earning potential, length of the marriage, income and whether one spouse contributed to the other’s financial success all come into play when determining the type of spousal maintenance that is appropriate for each situation .

Temporary maintenance

Temporary maintenance is financial support during the divorce process when a couple has decided to live separately during the separation, but one spouse is unable to be financially independent. A person who receives temporary support is still eligible to receive other forms of maintenance after the divorce is final.

Permanent maintenance

A decision for permanent maintenance typically happens in cases of very long marriages. It is also awarded in cases when one spouse is unable to be financially independent or cannot maintain a good standard of living without it. In most cases, permanent maintenance ends when the receiving spouse remarries.

Rehabilitative maintenance

The intention of rehabilitative maintenance is to financially support the spouse while they receive training or education that will prepare them to enter the workforce. This support ends when the spouse graduates, earns a certification or gets a job and is able to support themselves financially.

Fixed-term maintenance

Fixed-term maintenance is financial support granted for a predetermined amount of time. It is often awarded in cases where the marriage lasted less than 10 years.

The duration of spousal maintenance and the amount of maintenance awarded depend on the individual circumstances of each marriage and the payor’s ability to pay.

Welcome To Our Blog

Tue, 06 Dec 2022 22:43:00 GMT

Welcome To Our Blog

On Behalf of Law Offices of Pepi Camerlingo, P.C. | undefined | Child Support

We established this blog to share stories and information about topics relevant to our practice. Our intent is to regularly provide posts highlighting legal issues of local, state and national interest that we think you will find interesting. Check back for updates.