What Property is Included in the Marital Estate in Illinois?

 Posted on February 08,2022 in Divorce

When married couples divorce, they must address several important financial concerns. The assets and debts accumulated by the spouses during the marriage will need to be categorized, valued, and divided. According to Illinois property division laws, most assets accumulated by the spouses during the marriage are included in the marital estate. Both spouses have a right to an equitable portion of the marital estate in a divorce. However, property division is not always this straightforward.

Property Accumulated During the Marriage

As a general rule, most property acquired by either spouse is part of the marital estate. This includes wages, bonuses, commissions, tips, and any other income earned by the parties. Real estate, vehicles, and household items purchased by the couple are typically marital property. The increase in value of an asset during the marriage may also count as marital property. For example, the increase in value of a small business or a spouse’s retirement accounts will likely count as marital property–even if the asset was acquired before the marriage.  It should be noted that most property accumulated during the marriage is marital property regardless of who officially holds the title to the property.

Assets That Are Excluded from the Marital Estate

Some types of property are excluded from the marital estate. Property or funds acquired by either spouse through inheritance belong solely to the spouse who inherited the assets. Gifts are also excluded from the marital estate. Prenuptial agreements and postnuptial agreements may also be used to exclude property from the marital estate. For example, a business owner may use a prenuptial agreement to classify his or her business as a non-marital asset.

Commingled Assets May Lose Their Identity

Property division can be very complicated when property is comingled or mixed together. When marital assets and non-marital assets are mixed, the assets may lose their identity. Consider a woman who gets a $10,000 inheritance from her father. If she deposits this money into a shared checking account, the money may lose its identity as non-marital and be included in the marital estate. Similarly, a non-marital business may be considered a marital asset if both spouses contribute time, money, or effort into growing the business.

Contact a St. Charles Property Division Lawyer

If you are getting divorced, contact the skilled Kane County divorce attorneys at Goostree Law Group. Our team understands the intricacies of Illinois divorce law and can help you address property division, child-related issues, and more. Call our office today at 630-584-4800 for a free case evaluation.

Source:

https://www.ilga.gov/legislation/ilcs/documents/075000050k503.htm