Chicago Divorce and Family Law

How can a CPA help my divorce?

2012-05-13T14:54:05-07:00

The complex situation of a divorce is never easy, and most couples will seek out a legal firm that can help them reduce the anxiety and stress that naturally result. A divorce involves the litigation process, the dividing of assets and taxation of investments. While a divorce attorney may specialize in both out-of-court settlements and lawsuits when necessary, a CPA’s assistance is often necessary for the proper dividing of substantial assets and issues related to taxation. Those who are in a divorce that will involve substantial assets and taxation issues should seriously consider working with a CPA.

Legal Matters vs. Accounting

A good divorce attorney is a trained negotiator. She knows your basic legal stance, how to put the divorce in motion, how to pursue assets in mediation and how to finalize proceedings. Also, a good divorce attorney should know her limitations and when to hire expert help. She should be open to the idea of hiring a CPA once the case’s finances move beyond her comfort level.

CPA’s are specialists in finances, investments and all things monetary, including taxation. They have earned their license by passing the uniform CPA Exam. During the process of dividing assets, a CPA will have expert knowledge on the value of each asset and how they can be legally divided. CPA’s work regularly with taxes and knowing tax law is essential in understanding how properties and businesses are assessed by the government.

Divorce attorneys and CPAs often work together to fully understand your financial situation and develop the best possible outcome for you. While it is true that a good divorce attorney might be all you need in a financially simple case, you might need a CPA for a financially complex case because accounting and all its various applications is not something that attorneys are taught in law school. Thus, even though it might seem financially beneficial to forgo outside help, the litigation of a financially complex case will often benefit from a CPA’s expertise.

Redistribution of Assets

In today’s world, assets vary widely and often have numerous facets. For instance, many people are fully or partially self-employed in their own businesses which can range from services that staff employees that have established client lists to IT products that involve intellectual property patents. While any divorce attorney gains experience, through years of work, in division of such assets, no one person can be an expert in everything, especially since the law is subject to constant revision.

Often, assets interconnect. For instance, businesses of self-employed clients may also involve use of the home as part of the business. This means that the sale of a house could force business relocation which could lead to a loss of clientele or immediate income. All potential losses and gains should be part of a fair division of assets. Having both a CPA and divorce attorney can help with achieving the best financial outcome for all parties involved.

Investment assets can create further complications and require a highly educated and experienced CPA. Anyone involved in such a complex divorce should certainly seek expert assistance.

Resolving Tax Issues

If a new year passes during the divorce, it will cause yet another effect: tax implications. No one enjoys dealing with tax law, and having experienced a recent division of assets as well as having changed their marital status from “married” to “single” can cause distinct challenges. A CPA not only advises on the distribution of goods, but on the best possible tax situation or filings for the client. The rigorous efforts of a divorce can be somewhat alleviated in knowing that annual taxes will not present an additional headache.

Divorce Attorneys and CPAs

Whether a person’s assets are large or small, if the finances are complex, it is often good to consider allowing your attorney to work with a CPA. The attorney will handle all legal aspects and will typically let the CPA review all accounting and financial-related aspects of the divorce. The two can work hand in hand throughout much of the process in order to gain the best financial outcome for their client. Divorce law and financial know-how are two entirely different subjects of expertise, yet knowledge of both are necessary in many divorces. When dealing with a financially complex divorce, allowing your lawyer to obtain the help of the best CPA for your situation if often a good idea.

My awesome paralegals

2012-01-16T07:42:10-08:00

When I was fresh out of law school I had visions of providing clients with the highest quality of service regardless of their income. However, reality sunk in when I started my solo practice.

No matter how hard I tried to keep my fees under control, no person of modest means could afford me. Between office tasks and legal work, I was always overworked and underpaid. If I lowered my fees, I wouldn’t earn enough to cover office expenses and pay off my student loans.

Then, I hired Katelyn.

Katelyn had just graduated with a BS in paralegal studies and she wanted to put her knowledge to good use. At the time, I wasn’t aware of how useful paralegals could be so I just gave Katelyn office tasks. Katelyn, not happy with the situation, eventually managed to wring legal work from me.

And then I had an epiphany: Smart paralegals are just as helpful in a law office as a lawyer. Yet, they bill at less than half the hourly rate of an attorney. If we use paralegals, our client’s legal fees can be lowered without sacrificing our quality of service.

Now I work with two brilliant paralegals, Katelyn and Tim. They handle the routine day-to-day legal tasks, pleadings and motions. They do legal research, keep track of deadlines and — on slow days — they even beat me at scrabble.

There are times I wish Katelyn and Tim were full-fledged attorneys. They can’t give legal advice and they can’t attend court hearings. Yet, this is a small price to pay for working with two of the smartest and hardest working people I know.

Attorney Marie in the news

2012-05-12T12:33:16-07:00

Here are some of the recent family-law or legal articles that I authored or which quoted me:

Illinois State Bar Journal: Substituting a Judge as of Right.(August 2010). In this article I review when (and how) you can use your right to substitute the judge in your case.

Chicago Tribune: Finding Your Missing Piece. (March 28, 2010). The author analyzes what makes for long lasting relationships. After discussing successful relationships, she writes:

Hooray for the triumph of love, but, but, but … how can you be sure that it’ll work forever?
Unfortunately, you can’t, said divorce attorney Marie Fahnert. She said she has divorced plenty of once-great couples who grew apart, lost communication or lost trust.
But the good news: The qualities that “make for a good marriage are actually the same things that make for a good divorce,” she said.
The other day, I read a momentarily comforting motto on the back of a beer can: “Clarity is overrated,” it said.

Me: InFocus Magazine: Get Married Stay Married. (June 2010)(page 47) On its wedding issue, the magazine asks experts what makes marriage work. My advice: Maintain trust.

Recipe for a happy divorce

2012-01-14T19:41:17-08:00

Maintaining happiness (or some semblance of it) through your divorce might not be as difficult as you think. According to scientists, the following things make us happy:

Virtues: Our sense of wisdom, justice, compassion for others,
Gratitude: Appreciating what we have and expressing it to ourselves and others,
Savoring: Enjoying the moment and taking time to smell the roses,
Engagement: Being in our activities for the experience of it (“being in the zone”),
Living a meaningful life: Doing things for others and helping others.

Studies of the Danish (the happiest people on earth) show that low expectations also make us happy. If our expectations are low, then we become happy when things go unexpectedly well. Also, Denmark’s social safety net ensures people the basic necessities of life.

How can you go through a “happy” divorce?

Remember that you are in control of the things that make you happy (see 1-5 above).
Approach the divorce—and the associated child-custody, division of property, maintenance issues—with realistic expectations.
Reach an agreement with your spouse and litigate as few things as possible. This will save you money and—like the Danish—you won’t have to worry about the basic necessities of life.

Chicago divorce: Online info.

2012-01-14T17:51:44-08:00

If you are divorcing in Chicago, you can find an amazing amount of crucial information about your divorce without lawyers or private investigators. Here are a few websites that you should know about:

Your Divorce Docket (Cook County Clerk of Court): Here you can find an outline of your case. Although you cannot read the actual pleadings filed, you’ll know the date of your next court date, the judge assigned to your case and if any motions were filed. (Tip: make sure that after entering the information you click the “Search Now” button with your mouse. It will not work if you simply click the “Enter” key on your keyboard).
Assessed value of a property and PIN number (Cook County Assessor’s Office): Find out the assessed value of any property. Of course, theoretically, you should know the assessed value of your property. However, sometimes your spouse will have taken care of the finances and your want to double-check the numbers.
Deeds and Trusts (Cook County Recorder of Deeds): Come here if you want to know the owner of a property, its refinance history and whether the property is in a trust.