Illinois property division Archives

If you are approaching divorce in Illinois, you may wonder how the law treats the division of marital property. Here’s what you need to know.

Divorce is a difficult and emotional process that can be made even more complicated by the division of property between spouses. Marital property includes more than your family home. The legal definition of an asset in a divorce is anything that has a real value. Assets can include tangible items that can be bought and sold such as cars, properties, furniture, jewelry and even cryptocurrencies such as Bitcoin.

Illinois is an equitable distribution state, which means that marital property is divided fairly, but not necessarily equally, between the spouses. This is in contrast to community property states, where marital property is divided equally between the spouses.

The Strain of Property Division on Divorcing Couples

The division of property that you and your spouse have shared for years can seem especially tricky, often introducing fresh grievances or re-igniting old ones in the process. Here are some of the reasons why property division can be difficult in divorce:

Emotional attachments to property: Couples may have emotional attachments to certain properties, such as a family home or heirloom, which can make it difficult to negotiate a fair division.
Disagreements about what is fair: Spouses may have different ideas about what is a fair division of property. For example, one spouse may argue that they should receive a larger share of the marital property because they earned more money, while the other spouse may argue that they should receive a larger share because they contributed more to the household.
Complexity of assets: Couples may have complex assets, such as businesses, investments, or retirement accounts, that are difficult to value and divide.
Difficulty agreeing on values: Even when the assets are not complex, it can be difficult to agree on the value of the assets, especially if they have appreciated or depreciated in value since they were acquired.
Legal complexities: Property division in divorce can be a legally complex process, and couples may struggle to understand the relevant laws and regulations.
Fear of financial instability: Divorce can have a significant impact on a person’s financial stability, and couples may be afraid of the financial consequences of a property division that they perceive as unfair.

Equitable Distribution in Illinois

As mentioned, Illinois is an Equitable distribution state, meaning that a court will divide the marital property in a way that is fair and just, taking into account various factors such as:

The contributions each spouse made to the acquisition, preservation, or increase in value of the marital property;
The length of the marriage;
Primary caregiver status for the child/children;
The economic circumstances of each spouse at the time of the property division;
Any prenuptial or postnuptial agreements between the spouses;
The age, health, and occupation of each spouse;
The needs of each spouse; and
Any other factors the court deems relevant.

Marital property in Illinois includes all property acquired by either spouse during the marriage, regardless of how it is titled, except for property acquired by gift, inheritance, or a property acquired in exchange for property acquired before the marriage.

Non-marital property, on the other hand, includes property acquired by a spouse before the marriage, property acquired by gift or inheritance, and property acquired in exchange for non-marital property.

Tax Consequences

You will want to be sure to understand how the decisions you make about the division of your property will affect the taxes owed by both you and your spouse.

For instance, if you sell your home or other assets during your divorce, you may be required to pay capital gains taxes. Understanding and addressing tax-related issues will help you avoid financial problems that may arise after you complete your divorce.

Community Property Laws in Illinois

Illinois is not a community property state. Community property states, such as California and Texas, divide marital property equally between the spouses regardless of the contributions each spouse made to acquiring or maintaining the property.

In a community property state, property acquired by either spouse during the marriage is considered community property, and each spouse has an equal interest in it. This includes income earned during the marriage and any property acquired with that income.

Illinois and other equitable distribution states, on the other hand, divide marital property in a way that is fair and just based on the factors discussed above.

Hidden Assets

It is not uncommon for parties to hide their assets from their ex’s and the courts to help swing the distribution of property in their direction.

When it comes to property division, it’s important to make a list of all assets and debts that you and your spouse share. This includes assets that are solely in your name or your spouse’s name. This involves everything from retirement accounts and investments to real estate and personal property. Having a detailed inventory of your assets will help your lawyer build a stronger case and ensure that you receive a fair settlement.

It’s also crucial to be honest with your lawyer about any challenges you may face during the divorce process. This includes concerns about child custody or your spouse hiding assets or income.

Getting the Legal Help You Need

If you are facing divorce in Illinois, you might decide you want an attorney to help you with your case. It is important to get an experienced lawyer when discussing property division after divorce for several reasons:

Knowledge of the law: A divorce attorney will have a deep understanding of the laws and regulations that govern property division in your state, including the factors that a court will consider when dividing marital property. This knowledge will be invaluable in helping you negotiate a fair and equitable division of property.
Objectivity: Divorce can be an emotionally charged process, and it can be difficult to negotiate property division when you are feeling hurt, angry, or resentful. A divorce attorney can provide an objective perspective and help you make decisions that are in your best interests.
Protection of your rights: A divorce attorney will work to protect your rights and ensure that you receive a fair division of property. They will help you identify assets that may be subject to division and make sure that those assets are valued correctly. They will also help you understand your options for negotiating a division of property, including mediation and litigation if necessary.
Avoiding mistakes: Property division can be a complex process, and it is easy to make mistakes that could have long-lasting financial consequences. A divorce attorney will help you avoid these mistakes and ensure that you are making informed decisions about your property division.
Negotiation skills: A divorce attorney will have strong negotiation skills that can be invaluable in reaching a fair and equitable division of property. They will work to find creative solutions to complex property division issues and help you achieve your goals.

An experienced divorce attorney can help you navigate the complex process of property division and ensure that you receive a fair and equitable division of property.

Conclusion

Divorcing couples may struggle with property division because of emotional attachments, disagreements about what is fair, complex assets, difficulty agreeing on values, legal complexities, and fear of financial instability. It is important for couples to work with experienced divorce attorneys who can guide them through the process and help them reach a fair and equitable property division agreement.

If you are going through a divorce in Illinois and have questions about property division, contact the award-winning attorneys at Masters Law Group. Our highly experienced divorce lawyers are ready to guide you through the process and ensure that your rights are protected.

Set up your consultation here today.

Marital property is any property or money that either spouse got during the marriage. If you cannot come to an agreement, a judge will have to make decisions about dividing your property and debt, and also about spousal support.

Illinois may boast some of the lowest divorce rates in the nation, but think twice before you dub the state a lover’s paradise. In 2019, there were 1.3 divorces per thousand inhabitants in the state. However, this figure is a decrease from 1990, when the divorce rate was 3.8 divorces per thousand inhabitants.

One of the most controversial parts of the divorce process is often the division of marital property. Divorcing couples have the option of dividing property on their own with the help from a mediator, but couples who can’t reach an agreement will require court intervention. Illinois courts divide marital assets and debts according to “equitable distribution.”

Unlike other states that divide the marital estate exactly in half, Illinois instead considers a variety of factors to determine an asset division arrangement that is fair and reasonable on both ends. Here’s a couple of factors to consider when determining property division in Illinois.

Dividing and Distributing Assets

The first step in dividing property during a divorce is deciding whether property is marital or separate. Marital property includes most assets and debts a couple acquired during marriage. Separate property is if a spouse owned it before getting married or acquired it during marriage as a gift or inheritance.

There are many factors at hand when you try to split up assets such as, how much each side has contributed (income, debt, as a homemaker etc.), the value of property, property hidden or destroyed in the course of the marriage, the length of a marriage and more:

Economic circumstances of each spouse
Child upbringing costs
Existing court maintenance orders
Financial contributions from previous marriages
Prenuptial or postnuptial agreements
The status of each spouse (i.e. age, health, occupation, employability)
Consequences of tax reallocation from a property division

Similar to property, debt is divided in a divorce. “Marital debt” means debts that a couple gets while they are married. Spouses are responsible for each other’s expenses for the family during their marriage. Marital debt can be divided in a divorce case.

One thing to keep in mind is that the court is obligated to ignore marital misconduct when dividing property unless it had an immediate impact on the property or assets of the marriage. The main goal of the property division is to be fair. It won’t always be an even split, it could turn into a 60/40 split or 70/30 as long as the court deems it to be fair.

Once the court has determined what is and isn’t marital and separate property, they will assign a monetary value to each item. Determining an item’s value can help both the couples and the judge determine whether a specific property distribution is fair and equitable. A spouse with more assets and a high earning career can potentially take on most of the debts in a divorce, while the lower-earning spouse could receive a greater share of the assets. An example of this would be if one of the spouses has a high net worth or owns complex assets, the property division process can become especially complicated since they are liquid assets.

Couples can divide their assets and debts on their own by reaching a divorce settlement agreement. A settlement agreement should resolve all issues in your divorce. A judge will review any proposed settlement agreement and must approve it before your divorce can become final.

Divorce Mediation

As previously mentioned, working together with a mediator to come to an agreement over the dividing of the property will help the divorce move more quickly. This where instead of going to court and leaving the division of your hard-earned property and assets to court, you can opt to settle matters amicably. You can discuss the property division in the presence of a third party – or mediator – who will host the negotiations and help you and your spouse in reaching a fair settlement.

Final Thoughts

Ultimately, trying to determine the division of marital and separate assets can be a lengthy process. One way to speed this process up is to do an audit of all of your household items. Make a detailed list and then go through it line by line with your spouse. If and when couples have trouble communicating, going through a family law attorney may be your best option.

If you are considering filing for divorce, the first step you should take is to contact our Chicago-based law office. When you need the assistance of an experienced family court attorney in the greater Chicagoland Area, we can help. We are dedicated to providing our clients with exceptional service and support, guiding our clients through the entire divorce process.

If you are going through a divorce and want an experienced property division attorney to handle your case, do not hesitate to call. Contact us here today to schedule your complimentary consultation.

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Illinois Property Division in Divorce