Frequently Asked Questions
- Will I be able to receive spousal support (alimony)?
- Will I lose my pension?
- Who should keep the house?
- Is my IRA, in my name only, considered marital property?
- How do we figure how much child support should be paid?
- What is a QDRO and why do I need one?
- I want a divorce, but I'm worried about how it will affect me financially.
Child Support Questions
- How much child support will I receive (or have to pay)?
- Will a judge decide the amount of the child support or can my spouse and I decide on the amount?
- What if my spouse doesn't pay child support he or she has been ordered to pay?
- What about college expenses; can I have my spouse contribute to future costs?
- Can I change the amount of child support once the settlement is finalized?
1. Will I be able to receive alimony?
There are several tests for spousal support (alimony) including need, ability to pay, length of marriage and the age and health of both parties. It is important that you consult a financial planner in order to determine how the specifics of your case may impact your ability to receive spousal support.
2. Will I lose my pension?
Pensions and retirement plans are considered marital assets. Depending on the state you live in, the portion which was earned before your marriage could also be considered a marital asset. However, may be possible to retain your pension and offset it with other assets.
3. Who should keep the house?
This is a complicated question. Many factors must be taken into consideration such as who is retaining custody of the children. Also, it is vital that you pinpoint exactly what it will cost to maintain the home, factoring in taxes and inflation and figure out if you will have enough income (not including any child or spousal support payments) to live comfortably in the home. It is important to keep in mind that it may not be in your best interest to retain the home if you must give up other liquid assets. Remember, house equity is not liquid and will not provide income. Whether or not to keep the house is one of the most critical decisions you will make during the divorce process. You should contact a divorce financial planner who is an expert in this area and is able to guide you.
4. Is my IRA, in my name only, considered marital property?
Everything acquired during the marriage, no matter whose name it's in, is typically considered marital property. In some states, the increase in value of separate property could also be considered marital. You should consult a financial planner when debating whether or not to retain the IRA due to tax and penalty considerations imposed by the IRS.
5. How do we figure how much child support should be paid?
Every state has Child Support Guidelines that are mandated by the state. Contact your divorce financial planner for the guidelines in your state.
6. What is a QDRO and why do I need one?
A Qualified domestic relations order or QDRO is a legal order subsequent to a divorce that splits and changes ownership of a retirement plan to give the divorced spouse their share of the asset or pension plan. The Judgment of Divorce is not sufficient to divide up qualified plans, a QDRO is needed. In order to protect your assets, be sure to obtain qualified advice in this area from a specialist.
7. I want a divorce, but I'm worried about how it will affect me financially. (...especially in the current economic climate. Is it a bad idea to divorce in a recession like this?)
As in most things divorce, it's complicated. Our houses won't sell, our loan and credit options have dried up and our paycheck just doesn't go as far as it used to. Add to that the strain of divorce and you could have a recipe for disaster. For those thinking twice about divorce, I've compiled five financial tips in this article to help you decide whether to stay or go.
Child Support FAQ
1. How much child support will I receive (or have to pay)?
All states have guidelines that must be followed in determining the amount of child support to be paid to the custodial parent. Child support must meet these guidelines, though they can be exceeded. In Illinois, the guidelines are as follows:
| # of Children | % Net Resources |
| 1 | 20 |
| 2 | 28 |
| 3 | 32 |
| 4 | 40 |
| 5 | 45 |
| 6 | 50 |
2. Will a judge decide the amount of the child support or can my spouse and I decide on the amount?
It is best to come to an agreement before you go before a judge, since otherwise the judge will decide the amount for you. In deciding an acceptable amount, the state guidelines must be met, but can also be exceeded. As a certified financial divorce planner, I am a skilled negotiator and advocate who can give you the best chance for a more equitable settlement.
3. What if my spouse doesn't pay child support he or she has been ordered to pay?
If a spouse ordered to pay child support is found to be not fulfilling his or her obligation, the state's most common response is to garnish the non-custodial parent's wages. The custodial parent may also file for a court hearing in which the non-custodial parent could be subject to jail time or having his or her tax refund withheld to pay the back child support. In order to avoid this complexity, as a certified financial divorce planner, I can facilitate a settlement that includes provisions to help ensure payment of child support.
4. What about college expenses; can I have my spouse contribute to future costs?
College costs should always be addressed in divorce settlements. I can include provisions in the divorce agreement that will state which parent pays for which expenses based on their ability to pay, and also help ensure that the payments will be made.
5. Can I change the amount of child support once the settlement is finalized?
It is important to include a re-evaluation provision in the original divorce agreement, allowing the settlement to be revisited at set times. If this provision is in place, I am able to analyze the settlement, taking into account current economic situations of each spouse and general market conditions, in order to renegotiate where necessary.