Peoria Legal Blog

A growing number of older people in Illinois and across the country are choosing to divorce. While many people still think of divorce as a young person's phenomenon, baby boomers' divorce statistics continue to rise. Since 1990, the divorce rate has doubled among people 50 and older. At the same time, that rate has tripled for people aged 65 and above. Divorce has become more socially acceptable and generally supported, but there are many factors that can play a role in older people opting to end their marriages.

Families that are comfortable with divorce may be more likely to have divorced members. Studies show that the daughters of divorced parents are 60 percent more likely to end their own marriages while the sons of parents who split are 35 percent more likely to do the same. It also has been revealed that people of any age who have been divorced before are more likely to do so again. Therefore, older couples who have remarried are 2.5 times more likely to choose to separate than those who are still in their first marriages. In addition, people who have been married for a relatively short time are more likely to split than those who have stayed together for decades.

People in Illinois may already be aware that getting a divorce can have a significant impact on their current and future financial well-being. However, divorce seems to affect women more negatively than it does men. According to one 2008 study, divorced women tend to experience a drop in income by over a fifth while men actually experience a rise in their income by nearly a third.

While divorced women seem to bear the brunt of the negative impact of leaving a marriage, a study that was conducted by researchers at the Center for Retirement Research has shown that the long-term financial state, such as during retirement, of the divorced women may fare better than never marrying. The important factor in their long-term financial health is getting the home in the divorce.

The decision to separate from a partner, regardless of how long the relationship has lasted, is a very personal one. Many couples experience a variety of emotions when the decision to separate has been made. This often leads to inadequate preparation. However, it's important to note that being prepared can make the divorce process much easier for Illinois couples.

Recent studies show that some couples are more likely to divorce when they have a close friend, relative or colleague who separates from a spouse. In fact, when a friend has been divorced, a couple is up to 75 percent more likely to separate. This may be because they feel they can separate and still live a satisfying life, or it may be because they know they will receive the support they need if they choose to separate.

People in Illinois who are considering divorce may want to consider how 2017's Tax Cuts and Jobs Act could affect the separation process. In 2015, over 600,000 taxpayers deducted alimony payments from their annual tax returns. Due to changes in the law, however, people who finalize their divorces after 2018 will no longer be allowed to deduct alimony payments from their taxes. In addition, the recipient will no longer pay taxes on the income. These changes will reverse nearly 80 years of legal practice on taxation and spousal support.

In 1942, the Revenue Act established that alimony payments would be tax-deductible to the payor and taxable to the recipient. In many ways, this arrangement was mutually beneficial because it enabled recipients to receive a larger amount of spousal support each month and also provided a tax benefit to the paying spouses. This tax system helped to conclude many divorce negotiations successfully. Lots of wealthy people have been rushing to complete high-asset divorces in 2018 in order to avoid the changed tax implications with alimony.