Dividing all of your debts and assets can seem like a complicated part of your Illinois divorce. You have a lot going on in your life financially, and divorce doesn’t necessarily make it any easier. However, the right legal representation can help you fairly and equitably divide those debts and assets. Illinois law focuses on equitable division of assets, even if that division is not perfectly equal. Understanding these nuances can be tricky without the advice of legal counsel.
At Kulerski & Cornelison, our team serves families DuPage and Cook counties. We help you handle the financial and other aspects of your divorce.
Illinois Is an Equitable Distribution State
Illinois uses the equitable distribution model to determine how your assets and debts should get split up. The court looks at how to divide it all up fairly, considering all of the circumstances. Importantly, fair doesn’t mean that the division will be completely equal.
When thinking about, assume that courts presume that the fairest thing will be a 50/50 split, but that your unique circumstances could impact that. Also understand that there is a lot that goes into this decision, and your attorney can help you understand how it might impact your particular case.
What is the Difference Between Marital and Non-Marital Property?
In making decisions about your case, the court has to know what is marital property and what is not. Marital property are the assets you acquired during your marriage. It may not matter if only one person is on the title to the property. Common marital assets include:
- Your home
- Vehicles
- Retirement accounts
- Investments
Non-marital property includes things you acquired before you were married. It can also include things you inherited or were given as a gift to you individually. You must show that the property is non-marital, otherwise it is part of the court’s division. Non-marital property could aslo become marital if it is commingled with other assets, or for other reasons. Your attorney can help you sort through this legal grey area.
Marital vs. Non-Marital Debt
Just like your assets, there is also a difference between marital and non-marital debt. Marital debt are usually the obligations you incurred during your marriage. This often includes:
- Mortgages
- Car loans
- Credit cards
- Medical bills
A non-marital debt is usually one you incurred before your marriage. These are then the responsibility of the spouse that incurred them. One of the most common examples is a student loan you got before you were married, but there are many other possibilities as well.
Factors That Courts Consider When Making Property Division Decisions
The judge in your case will consider many factors when determining how to divide the property and debts:
- The length of your marriage
- Financial contributions to the marriage
- Non-financial contributions, like stay-at-home parenting
- Economic circumstances for each spouse
- Custody arrangements
- Pre-marital v. marital debts and assets
- Tax consequences of allocating property
- Any agreements between the spouses
Common Assets Divided in Illinois Divorces
- Real Estate: The marital home is often the most significant asset. Courts may order its sale or award it to one spouse.
- Retirement Accounts: Pensions, 401(k)s, and IRAs are divided using Qualified Domestic Relations Orders (QDROs).
- Business Interests: If one spouse owns a business, valuation and division can be complex.
- Personal Property: Cars, furniture, and household items are divided equitably.
- Investments and Bank Accounts: Stocks, bonds, and savings accounts are included in the marital estate.
Common Debts Divided in Illinois Divorces
- Mortgages
- Home Equity Loans
- Balances on credit cards
- Car Loans
- Student Loans (if incurred during marriage)
- Medical Bills
Get Help With Debt and Asset Division in Your Illinois Divorce
The right Illinois divorce attorney is ready to help with your case. We understand how to calculate the value of your debts and assets and seek their equitable division. The law in this area can be complex, subject to both technical and equitable principles that impact the court’s decision. We help you sort through all of this and even help negotiate a resolution.
At Kulerski & Cornelison, our family law attorneys are ready to help. Contact us today for a consultation of your case.