Breadwinner Vs. Intangible Support
Many divorcing couples have the same question: how much should the non-income-earning spouse receive from the breadwinning spouse due to intangible support?
It is common for the non-breadwinner to claim that she was part of a 50/50 partnership with the breadwinner. She contends that he would not have been able to bring home his salary without her help. On the other hand, it is common for the breadwinner to disregard any intangible support and claim that he would have been just as successful without his wife's support. If the judge agrees with the non-breadwinner's point of view, she could be awarded a portion of the husband's future earnings, such as compensation or stock options.
In dividing assets, the judge can take more into account than just the investment accounts and house. This means that you have to provide as much detailed information as possible regarding your financial situation. In order to ascertain income and create a list of assets stating who owns what and when it was acquired, it is imperative to collect all financial documents:
- pay stubs
- bank statements
- tax returns
- etc.
- stock options and other employee benefits
- upcoming tax refunds
- frequent flier miles
- season tickets to cultural or sporting events
Any asset, financial or real, acquired during a marriage is considered marital property and will be divided. Illinois state law dictates that property is divided "equitably". This does not mean 50/50. The judge will take into consideration the following in order to divide the property:
- the duration of the marriage
- the earning capacity of each spouse
- each spouse's contribution to the accumulation of assets, whether paid by a company or intangible support performed in the home
A divorce financial planner can help you determine the current value of each asset as well as the future value. In some cases, a lump-sum distribution is more attractive then multiple distributions because the value may decrease over time. A divorce financial planner can also help you avoid any unforeseen tax consequences or transactions costs. For example, if not done correctly, although you may be awarded all or a portion of your husband's pension, you could face a penalty from the IRS. In any divorce that includes marital property or other assets, it is prudent to consult a divorce financial expert.
Remember that lawyers are trained in law, not finance. A divorce financial planner is crucial to a well-rounded "divorce team". By enlisting the help of experts you will have a much higher chance of receiving the most equitable settlement possible. Don't risk your future.