Children and Family Practice Group DIVORCE BASICS JoAnn Villaseñor Supervisory Attorney Children and Family Practice Group

MARRIAGE Who can marry and what does that mean? Not just a man and a women. Same sex marriages recognized in Illinois since 6/1/2014.

MARRIAGE Contractual Agreement Solemnized in a civil or religious ceremony. Provided a valid license has been obtained and all other requirements are met. A civil union can be converted to marriage by applying for marriage license.

DIVORCE ISSUES Grounds Basic grounds for divorce: Irreconcilable Differences; Separated at least (6) months; Resident of state and county for (90) days before filing or (90) days at time of prove-up. Other fault grounds: physical cruelty, mental cruelty, adultery have been abolished.

DIVORCE ISSUES Maintenance All of the child-related remedies, plus… Maintenance – Factor One: Entitlement – 504 (a) - Looks at each party’s ability to work; - Standard of living during marriage; - Needs of each party; - Realistic earning expectations; - (14) factors in total.

DIVORCE ISSUES Maintenance Maintenance - Factor Two Amount and Duration: Amount is a calculation of gross income of both parties. 30% minus 20% = Maintenance amount Recipient total income cannot exceed 40% of total joint income Duration is a percentage of total years of marriage up to date of filing. 0-5 years: duration is 20% of total years 20 year marriage can result in permanent maintenance

DIVORCE ISSUES Division of Debts and Assets Division of Debts and Assets – In General Any debt incurred is marital. Any asset acquired is marital. Division will be equitable, starting point is 50/50. Except debt or asset stemming from non- marital or pre-marital But this is subject to exceptions: Student loan debt remains debt of person who incurred it. Personal injury award from pre-marital injury. Part might go to spouse who cared for injured person.

DIVORCE ISSUES Retirement Accounts Pensions and Retirement Accounts The marital portion is that which accrued during the marriage. Regardless of when the account began accruing; Except for pensions in pay status that accrued before the marriage. Different Types: Defined Benefit – traditional payment per month. Defined Compensation – 401K type, fixed sum of money. Other government pensions (Military, Railroad, Post Office)

DIVORCE ISSUES Retirement Accounts Is there a retirement account? Who is the employer? Does employee belong to a labor union? Look at the paystubs – for union dues and/or pension withholdings. Look at the W-2’s Box 12 codes denote deductions for assorted retirement plans. Box 13 may be checked for “Retirement Plan”

DIVORCE ISSUES What to Look For

DIVORCE ISSUES Box 12 Codes Box 12 codes are: A -- Uncollected Social Security or RRTA tax on tips B -- Uncollected Medicare tax on tips C -- Taxable costs of group-term life insurance over $50,000 Code D -- Elective deferral under a 401(k) cash or arrangement plan. This includes a SIMPLE 401(k) arrangement. E -- Elective deferrals under a Section 403(b) salary reduction agreement F -- Elective deferrals under a Section 408(k)(6) salary reduction SEP G -- Elective deferrals and employer contributions (including nonelective deferrals) to a Section 457(b) deferred compensation plan

DIVORCE ISSUES Box 12 Codes H -- Elective deferrals to a Section 501(c)(18)(D) tax-exempt organization plan J -- Nontaxable sick pay K -- 20% excise tax on excess golden parachute payments L -- Substantiated employee business expense reimbursements (nontaxable) M -- Uncollected Social Security or RRTA tax on taxable cost of group-term life insurance over $50,000 (former employees only) N -- Uncollected Medicare tax on taxable cost of group-term life insurance over $50,000 (former employees only)

DIVORCE ISSUES Box 12 Codes P -- Excludable moving expense reimbursements paid directly to employee Q -- Nontaxable combat pay R -- Employer contributions to your Archer medical savings account (MSA) S -- Employee salary reduction contributions under a Section 408(p) SIMPLE T -- Adoption benefits (not included in Box 1) V -- Income from exercise of nonstatutory stock options W -- Employer contributions (including amounts the employee elected to contribute using a Section 125 cafeteria plan) to your health savings account (HSA)

DIVORCE ISSUES Box 12 Codes Y -- Deferrals under a Section 409A nonqualified deferred compensation plan Z -- Income under a Section 409A on nonqualified deferred compensation plan Code AA -- Designated Roth contribution under a 401(k) plan BB -- Designated Roth contributions under a 403(b) plan CC -- For employer use only DD -- Cost of employer-sponsored health coverage EE -- Designated Roth contributions under a governmental 457(b) plan

DIVORCE ISSUES Real Estate Value of House – Gross value minus balance of mortgage = equity. Who is living in the House? Client and kids Status of Mortgage: Who is paying it? Is it current? Does our client want the house