Divorce causes changes in multiple areas of a person’s life, but one that is often overlooked is a spouse's tax bill. Regardless of the time of year when you divorce, your next tax return is likely going to be affected by such a profound life change. You will likely lose certain exemptions and deductions, but you may also gain some. The important thing is to ensure an active role in how your divorce decree is written, so you can have as much control as possible over the tax consequences for both you and your ex-spouse.

Alimony and Child Support

Perhaps the most unpleasant surprise for so many is the tax consequences of alimony and child support. While the parent with the majority of the parenting time will be granted child support in all but the most unusual Illinois divorce cases—child support is a duty owed to the child or children, not to the ex-spouse—alimony or spousal support is a different matter. To determine whether such payments are warranted, the court will consider a host of factors, such as the income of both parties, the amount of support given during the marriage if one spouse had to leave the workforce for some reason—including giving birth or obtaining an advanced degree—and the actual current needs of each spouse.

During a divorce, the general advice from friends and experts is to avoid dating, especially if you have children. It can present a distraction from proceedings, and in some cases, can actually wind up affecting the asset distribution of your marital estate or your ability to receive spousal support. Even after your divorce is final, it is a good idea to tread carefully in terms of getting back on the proverbial horse.

Dating During Can Be Messy

There is no legal prohibition of dating during divorce proceedings. However, it is frowned upon, especially if there are children involved, because it can provoke strong feelings, especially if you are the one who instituted proceedings. To a hurting ex-spouse, dating so soon can seem like flaunting a new relationship in their face, and they may look to make you pay for it, so to speak. It is not uncommon to hear of soon-to-be ex-husbands and ex-wives deliberately drawing out proceedings or complicating asset division solely to inconvenience their spouse, even if it means they might pay more in attorney’s fees.

More and more people are pursuing a divorce at relatively later stages of life for a variety of reasons. However, even if you are young, it is, nonetheless, a good idea to take steps to understand retirement accounts and Social Security payments, because one day, you may need to use them, divide them with your spouse or ex-spouse, or both. You can also ask an experienced attorney for assistance.

How Social Security Works

During one’s working lifetime, taxes are withheld from each paycheck, some of which are used to pay into Social Security. When that person reaches the appropriate age, that money is used to help support him or her, as a way of giving back what a person has put into the system. Because of this, a person’s eligibility for Social Security is based, among other factors, on how many “work units” they have worked over their lifetime. If one has accumulated 40 units—roughly 10 years’ worth of work, which does not have to be continuous—and he or she is over 62 years old, they are generally eligible to receive Social Security payments.

If you get a divorce in Illinois, and you have children, you will almost certainly be required to pay child support if you are the parent with less parenting time. It is the policy of the state that children are owed support from both of their parents if at all possible, so that right is not vested in either you or your spouse. You may or may not be asked to pay spousal support, also called maintenance, depending on the specifics of your case. Whether you are required to pay one or both, however, it is possible to request a modification to both of these payments if it is deemed appropriate.

Child Support Changes

Child support may be modified every three years without any other cause, or it may be modified when there is a “substantial change in circumstances,” most often due to a change in the supporting parent’s income. While every judge will define “substantial”’ differently, the law does stipulate a minimum standard—specifically, a deviation of at least 20 percent (but no less than $10 per month) from the existing order. Judges are not required to order child support strictly according to statutory guidelines, but if they do not, they must enter a finding regarding why the guidelines were not appropriate.

While many Americans work for large companies, more and more are starting their own businesses—and for a variety of reasons. However, taking on this responsibility can mean extra headaches if you and your spouse ever wind up in divorce court. A business is an asset—in most cases, a marital asset—and like any other property acquired during the marriage, it must be valued and apportioned in accordance with the law. It may not be necessary to divide the business itself, but some manner of arrangement must be made that is equitable to both spouses.

Equitable Distribution and Asset Division

When left to the court to decide, asset division in Illinois is governed by the principle of equitable distribution. In other words, the state’s policy in divorce cases is to divide all marital property as fairly as possible. This means that unlike in community property states, the marital assets will not necessarily be divided equally; instead, they will be divided in the fairest method possible. If one spouse makes significantly more than the other, for example, the higher-earner may receive fewer marital assets because they have the means and the capital to acquire more.