Equity Division of Assets during a Divorce
During a divorce, a couple’s house is usually the most expensive financial asset that needs careful division. Like sharing responsibilities in child custody, equity division of a house – or other financial asset, is also an important part of the divorce agreement. The way equity division happens and what assets can be divided are governed by the Illinois Marriage and Dissolution of Marriage Act. As per the law, marital property is all property that includes debts and other obligations pending by either spouse during the course of the marriage.
Considering the fact dissipation is possible, which can help hide assets of either spouse, consulting an experienced family law attorney can help accumulate all marital and non-marital assists in orderly manner, while providing a way to negotiate an agreed equity division beneficial for both parties.
Properties that are Non-marital
The law exempts non-marital properties from equity division, and provides relief to a spouse who bought items for their personal use or acquired it under the following conditions:
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Assets received as part of a gift or in exchange of other legacy property,
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Property acquired or exchanged before marriage,
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Property acquired through a previous spouse judgment,
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Properties that are permanently exempted as per a previous agreement,
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Property acquired before marriage and used as collateral for non-marital assets. If said property was used as collateral for marital assets, it should be reimbursed as per the agreement,
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Any increase in value of the non-martial property is exempt,
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Properties acquired by selling any non-marital property.
During divorce proceedings for equity division, the court will make factual findings of its own to ensure non-marital properties are accurately classified.
Division of Marital Assets
There is a variety of physical and financial assets the court may consider for equity division given the fact the assets were acquired after the marriage. Following assets are not exempt:
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Properties acquired after the marriage are valued at fair market value. The price of a house – based upon any mortgage payments due, or share of equity a spouse contributed, should be reimbursed and the asset sold after valuation. Either spouse can purchase and reimburse the share of the other spouse and retake possession of the asset,
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Pension funds valued under the Illinois Pension Code,
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Stock options or similar financial assets,
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Any life insurance policy will be transferred to a former spouse as beneficiary.
If the court finds fit, it can establish a different fund or trust and transfer a portion of equity to assist the best interest of any children.
If you wish to learn more about equity division and other family law issues or want to schedule a free consultation, contact Law Office of Fedor Kozlov at 847-380-5193 to speak with an experienced divorce and family law attorney.
