Family Law

Making sure the family house gets properly transferred in a divorce should be high on every lawyer's to-do list, according to Adam Whiteman in the ISBA's November 2017 Real Property newsletter. That means seeing to it that "the property gets quitclaimed and recorded as necessary and…the mortgage is refinanced or…some other agreement is put in place to remove the non-owning spouse from any mortgage that encumbers the property," he writes. Waiting till the divorce is over is asking for trouble.

A few of his tips:

A postnuptial agreement is "an important and effective tool in Illinois and should not be forgotten by practitioners," writes Chicago lawyers Joshua S. Singewald and Kellie Rose Bylica in the September ISBA Family Law Section newsletter.

As in the case of any contract, a postnup must be entered into voluntarily by the parties, and the familiar contract-law protections against coercion and mistake apply, Singewald and Bylica note. And Illinois law "require[s] a full disclosure of each party's assets and liabilities for every postnuptial agreement," allowing each "to make an informed decision."

So when would a married couple use one? "[I]f one spouse intends to start a business during the marriage, the business-owning spouse may want to protect his or her business in the event of divorce," Singewald and Bylica write. "Similarly…a spouse [who] makes a substantial non-marital contribution to a marital asset," such as making the down payment on a house, might want to assure reimbursement, they write. Postnups also enable the parties to allocate debt, deal with bequests to children of previous marriages, and even "[r]evise a prenuptial agreement based on current/changed circumstances."

Learn more about postnups in the September Family Law newsletter.

Divorcing clients have a range of estate planning needs, but some issues arise for nearly everyone whose marriage is ending, notes Chicago lawyer and ISBA member Lauren Evans DeJong. So be prepared to counsel your divorcing client about the following five estate-planning tasks.

Changing beneficiary designations. These include removing the soon-to-be ex as beneficiary "of [the client's] life insurance policies, individual retirement accounts, land trusts, and annuities," DeJong writes. Also review "transfer on death or payable on death bank or brokerage accounts, land conveyed by transfer on death deeds, and employee benefits."

Controlling access to online accounts. The Revised Uniform Fiduciary Access to Digital Assets Act, 755 ILCS 70/1 et seq., which took effect last year, "provides a priority system for individuals to specifically control disclosure of digital assets and content of electronic communications" on social media, email, and the like.

"Many clients will not want their…ex to have access to their e-mails, Facebook or Instagram accounts, financial or banking information, diaries, or other personal information," DeJong writes.

"Individuals can use online tools established by providers [e.g., Google's Inactive Account Manager and Facebook's Legacy Contact] to direct disclosure of digital assets," she writes. "[A]n online tool…takes precedence over any other method of directing disclosure." Another option is to draft a statement directing disclosure, which can be included in a client's will, trust, or POA.

On July 1, 2017, a major change for calculating child support obligations takes effect. Last year, Public Act 99-764 was enacted. The legislation amended the Illinois Marriage and Dissolution of Marriage Act to replace the percentage guideline formula with the income shares model for calculating child support. This is a significant change that brings Illinois in line with 39 other states and the District of Columbia, which already use the income shares model.

Since 1984, Illinois has used the percentage guideline formula to determine child support. It arrives at the child support obligation by multiplying the payor's net income by a statutorily set percentage, which increases based on the number of children. This model is now considered outdated "because it does not reflect actual child rearing costs or allocate those costs between the parents." (Find out more more in the December 2016 IBJ at http://bit.ly/2qYq8Rr). Rather, the old formula required payors to simply pay a percentage of their net income regardless of the actual child rearing costs. Oak Brook attorney Margaret A. Bennett believes the old model often caused acrimony between divorcing parents because it is not always perceived as equitable and accurate.