Dividing property is typically necessary during divorce proceedings. Spouses must identify their marital property and then negotiate reasonable or fair terms for splitting up those assets as a means of separating their finances and lives.
As an equitable distribution state, Illinois prioritizes a fair outcome when spouses split their property during divorce proceedings. Determining what is truly marital property and what is separate, nonmarital property is a key component of a fair property division settlement.
What’s considered marital property in Illinois?
Illinois state law treats almost everything acquired during marriage as marital property. The income of both spouses is marital income, and any assets acquired with that income could be marital property that both spouses technically own jointly.
It does not matter if one spouse earns far more than the other or if only one spouse has their name on ownership paperwork. The date of acquisition and the capital used to acquire the assets are generally what determine if property is potentially divisible during divorce.
What is separate property in Illinois?
There are several types of assets that are usually separate when spouses divorce. Property owned before marriage can remain the separate property of the spouse who initially owned it in many cases. Assets received as gifts from people outside of the marriage may constitute separate property as well. Inheritances received before or during the marriage are usually separate property as well.
Commingling is a concern in some cases. If spouses deposited inherited money into a joint account, added one another to ownership paperwork or used marital resources to improve or maintain separate property, then that may raise questions about whether the property remains fully separate or is now partially marital property.
Is a business marital or nonmarital property?
Business holdings can be especially critical for people to assess during property division negotiations. A business started prior to marriage or inherited from a family member may be the separate property of one spouse.
However, the use of marital income to invest in the company or unpaid contributions could affect the ownership of the company and what happens during property division proceedings. Business owners often need help reviewing financial records and validating what a business is worth, in addition to determining if it is at risk as marital property.
Those with high-value marital property, including businesses and professional practices, may need to proceed cautiously to protect their interests during divorce. Working with an experienced Illinois divorce attorney can help people identify separate property and push for fair property division terms when they divorce.