Divorce can disrupt the financial plans from your marriage, including savings you have accumulated for your child’s college expenses. If you have been making regular contributions to a college fund, you may worry about how you will continue to afford them on your individual income while also supporting yourself and your child. You should discuss your college savings plan with your spouse during your divorce negotiations, including who will control any existing savings and how to ensure that the money goes towards your child.

Types of Plans

Savings accounts from your marriage, such as a retirement plan, are considered marital assets because they are funded with marital income. Even if you keep control of the entire account after your divorce, you may need to compensate your spouse for half of the value of the account. A court may exclude your college savings account from your marital property if it classifies the account as a fund set aside for your children. The best way to do this is by creating a plan that is meant for college savings, such as a:

• 529 savings plan;
• Custodial 529;
• Coverdell Education Savings Account; or
• Trust in your child’s name.

Plan Control

If you created the college savings account before your divorce, you will need to decide which parent will be in charge of the account moving forward. Usually, one parent assumes total control of the account, though you can split the account and each receive half of its value. You can include conditions in your divorce agreement stating that:

Amazon CEO Jeff Bezos recently announced the terms of his divorce from his wife of 25 years, MacKenzie. The divorce is expected to be the most valuable in history because Bezos’s net worth of more than $110 billion makes him the richest man in the world. As part of the divorce:

• Jeff Bezos will keep 75 percent of the couple’s stock in Amazon and voting control for all of their stock;
• MacKenzie Bezos’s share will be about four percent of Amazon’s total stock, valued at $35 billion; and
• Jeff Bezos will receive all of the couple’s interest in the Washington Post and Blue Origin.

As a result of the divorce, MacKenzie Bezos will be the third-richest woman in the world. As astounding as the details of the agreement are, it may be just as impressive that the divorce has been amicable. The couple reached a quick agreement and has complimented each other publicly throughout the process. You could argue that it is easy to cooperate when both spouses are guaranteed to still be amongst the richest people in the world. However, a high asset divorce can just as easily create conflict between the spouses.

The Stakes

You likely worked hard to accumulate the wealth and assets that you share with your spouse. It is natural to want to keep as many of those assets as possible. A divorce is meant to provide financial stability to both spouses. This may mean:

Studies on the likelihood of divorce often look at factors on a personal level, such as an individual’s income, education, employment, and maturity at the time of marriage. A recent study from the University of California at Irvine instead looked at how society as a whole affects the likelihood of divorce. The researchers collected divorce data from 84 countries from 1970 to 2008. They did not include the U.S. in the study because they considered its statistics to be an outlier, but the findings of the study can still be applied to the U.S.

The global divorce rate more than doubled during the study period, increasing from 2.6 divorces per 1,000 marriages to 5.5 divorces per 1,000 marriages. Countries in Northern and Western Europe generally had the highest divorce rates, while divorce rates were lowest in Southern Europe, Latin America, and Eastern Asia. Divorce rates greatly varied amongst countries in regions such as Eastern Europe, the Middle East, and Central Asia. Some countries bucked their regional trends, such as Cuba having a high divorce rate and Ireland having a low divorce rate. Researchers found five common characteristics in many of the countries with high divorce rates:

1. High Economic Development: Countries with higher gross national incomes also had higher divorce rates. People with higher incomes may feel more secure in leaving their spouses and financially supporting themselves. They may also be less worried about the expense of divorce.
2. High Education: High levels of education often go along with economic development. The study measured education levels by the number of people who received secondary education, such as college. A more-educated person may be more capable of obtaining a well-paying job.
3. Female Independence: Countries with higher divorce rates tended to have more women who were members of the workforce. Unemployment can be an obstacle for a woman considering divorce because she is dependent upon her husband. Working women may have more confidence in themselves.
4. International Organizations: Membership in international organizations and treaties corresponded with higher divorce rates. The researchers believe that being part of these groups encourages countries to accept modern principles on individual rights, such as the right to divorce.
5. Fewer Catholics: The Catholic Church does not recognize divorce, though this does not prevent some Catholics from divorcing. However, a country with a predominantly Catholic population, such as Italy or Ireland, may be more likely to adhere to the rules of the church.

Contact a St. Charles Divorce Attorney

The U.S. shares all of the qualities that are associated with higher global divorce rates. As a nation, we are accepting of divorce and give individuals the confidence that they can support themselves after divorce. A Kane County divorce lawyer at Goostree Law Group can help you after your decision to divorce. To schedule a free consultation, call 630-584-4800. 

Some spouses have the unfortunate timing of divorcing while the wife is pregnant. Pregnancy is an emotional time for both expectant parents, though the excitement usually draws them closer. Having a child puts stress on the parents, which their relationship may be unable to withstand. In other cases, the decision to divorce just happens to coincide with the pregnancy. Illinois law does not prevent spouses from divorcing while expecting a child. However, pregnancy can change the nature of divorce, especially if it will be the couple’s first child.

Parenting Factors

Illinois law assumes that the husband is the father of any child conceived or born during a marriage. Only a voluntary acknowledgment of paternity by another man or a paternity test could break that assumption. Because the spouses will be co-parents after the divorce, their agreement must include:

• The allocation of parental responsibilities;
• A parenting time schedule; and
• Child support payments.

A parenting plan for a newborn child is different than with older children. The mother will likely care for the newborn a majority of the time, but the father also needs bonding time with the infant if he plans on being an active parent. The parents should schedule a regular time when the father can visit and hold the infant. Caring for the infant may affect the balance of incomes that determine child support payments, depending on the type of maternity leave that the mother receives and whether either parent will reduce their work hours to focus on parenting.

Taking a vacation after completing your divorce can be therapeutic. You have built up a lot of stress during the process and may need a short period of time when you can relax and enjoy yourself. It is easier to avoid reminders of your divorce by getting away from your familiar home environment. Visiting a new location may inspire a fresh perspective on your life after divorce. You can decide for yourself when the best time will be to take that vacation and where you should go. Here are four tips for making vacation plans after a divorce:

1. Identify What You Enjoy: Vacations can be very busy or very relaxed. Some people enjoy visiting new places and seeing the sites. Others like physical activities that are intensive or leisurely. You may prefer sitting on a beach or finding a quiet place where you can disconnect. This vacation should focus on what you enjoy, whether that is activity or inactivity.
2. Vacation Within Your Means: Your divorce will naturally diminish your financial resources because of the requirement to divide your marital property. You should not schedule a vacation that will break your budget. It would also look bad if you receive spousal maintenance and immediately use it on a lavish trip. If your money is tight, be creative in your vacation plans by picking a less expensive destination that you will still enjoy. A weekend trip may be more practical than a week-long stay.
3. Meeting Your Children’s Needs: Having children will affect your vacation plans. Your children deserve a vacation as well, which may delay your plans until the summer. A family vacation may be less relaxing for you and prevent you from doing some of the activities that you enjoy. You will need to fit your vacation into your parenting schedule, which may involve changing your normal schedule. You can plan a vacation without your children, but that would still require consulting with your co-parent.
4. Having Company: You have the choice of whether you will vacation alone or with others. A solo vacation gives you more freedom to relax but may be lonely. You can invite friends or family to accompany you on the trip, with the understanding that you want to avoid talking about your divorce. You should consider joining a tour group if you like structure and interacting with people who have similar interests.

Contact a St. Charles Divorce Attorney

To afford the vacation that you want, you need financial security coming out of your divorce. A Kane County divorce lawyer at Goostree Law Group can help you plan for life after divorce. To schedule a free consultation, call 630-584-4800.

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