Asset Division

 Asset Division / Examples of Divorce Assets / Distribution of Property / Allocation of Debt

Asset Division

Asset division in divorce is complex, and it requires an attorney with knowledge of accounting, asset valuation, tax issues, and other financial matters.  It also requires an attorney who has experience with family law judges and understands how they tend to treat various items of property.

Illinois is an "equitable distribution" state, which means that property acquired during the marriage will be divided in an equitable manner.  However, equitable does not always mean that assets will be divided equally.  A family law court could award all marital property to one party, if that is what the judge determines to be equitable under the circumstances, although that result would be unusual.

Property you bring to the marriage, along with gifts and inheritances received during the marriage, are separate property and yours to keep.  However, for separate property to remain separate, the owner needs to keep his or her name on the property and keep the spouse‘s name off.  In addition, separate property and marital property can‘t be commingled.  Any increase in the value of separate property is marital property and will be divided equitably.

In all property divisions, spousal support is like a wild card.  The judge can use it as a balancing tool to make the division of assets fairer, or award more assets to avoid the need for spousal support.

At the Steele Law Firm, our attorneys are qualified to provide a comprehensive analysis of:

• Tracing separate property and determining which assets are marital and which assets have remained separate
• Determining the divorce value of martial assets, which may differ from the book value
• Determining how much assets have increased in value during the marriage
• Valuing businesses and professional practices
• Valuing trust assets, stock options, and retirement assets
• Determining the tax ramifications of various distribution options

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Examples of Divorce Assets

Some of the assets that require valuation in divorce settlements include real property such as homes, business property, time shares, ranch land, and vacation homes; banking assets; businesses and professional practices; livestock; retirement pensions and 401k plans; stock options; trust interests; inherited assets; art and antiques; vehicles; wine, sports memorabilia or other collectibles and debt accumulation.

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Distribution of Property

As a general rule, property acquired by either spouse prior to the marriage is considered non-marital property and will therefore be assigned to the spouse to whom the property belongs. Property acquired by either spouse subsequent to the marriage is considered marital property and is subject to division.  However, like most issues in a divorce case, there are certain exceptions to this general rule.

Pension funds, like other property, acquired subsequent to the marriage are considered marital property.  However, unlike other types of property, certain portions of a pension fund may be non-marital and therefore not subject to division.  The portion of the pension fund subject to division is the increase in the value of the funds from the date of marriage to the date of judgment for dissolution of marriage.

Property division does not have to be equal. As provided by Illinois law the court will consider several factors in its determination of appropriate equitable division of property.

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Allocation of Debt

Like property, debt is generally considered marital when it is acquired by either party subsequent to the marriage.  However, the misuse of property and/or acquisition of debt by one party subsequent to the irreconcilable breakdown of the marriage may be characterized as dissipation and will be the exclusive responsibility of the party who incurred the debt.  Debt allocation is determined by the court using the same factors as those used to determine the appropriate division of property.

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If you are going through a divorce, you need the advice and assistance of a skilled, experienced divorce attorney to help you protect all of your assets. 

Call the Steele Law Firm at (312) 893-5888 today to learn more about how we can help you.