Asset Division Attorney in Schaumburg, IL
As an asset division attorney, I know that one of the most complex parts of a divorce proceeding is the equitable distribution of assets between spouses. This is especially true when there are many high-net-worth assets that the couple secured during their marriage. During the process, not only is your physical property subject to division, but your debts and marital assets are as well.
At the Law Office of Fedor Kozlov, P.C., in Schaumburg, we can guide you through the asset division process and help you differentiate between marital and separate assets. Our attorneys assist you during negotiations with your spouse and their lawyer to make sure that your financial interests are protected and you remain financially stable after the divorce.
Settling Debt Division During a Divorce
The equitable distribution of assets is based on two important factors, i.e., differentiating between separately owned and marital assets, and proper valuation of marital assets. Generally, marital assets include any property acquired during the course of the marriage, regardless of in which spouse’s name they are in. On the other hand, separate assets refer to property bought by either spouse separately, which may or may not have been used by both partners. In case a piece of real estate was bought before marriage and was remodeled using money from a joint account, the amount of appreciation till the divorce becomes a part of a marital asset.
During a divorce, the court takes into account numerous factors during an equitable asset division, including:
- Home and other real estate
- Insurance policies
- Social Security benefits
- Pensions
- Retirement investments and accounts
- The current income of each spouse
- Custody of the children
- The contribution of each spouse to the marriage, including homemaking and financial contributions
- Interests in closely-held or family-owned businesses
Frequently Asked Questions About Asset Division In Illinois
What is “equitable distribution” in Illinois?
In Illinois, the legal framework for dividing marital property is called “equitable distribution.” This model aims to divide assets fairly, taking into account the unique circumstances of each marriage rather than necessarily splitting everything equally down the middle.
While many might assume this means a straightforward 50/50 split, the reality is that the court assesses various factors to ensure that the distribution is just. Key considerations include each spouse’s financial situation, the duration of the marriage, individual contributions (both financial and non-financial), and the future needs of both parties, particularly if children are involved.
What counts as marital property?
Marital property encompasses all assets and debts that either spouse acquired during the course of the marriage, regardless of whose name is listed on the title or account. Examples of what is typically considered marital property include:
Real Estate – Homes, condos, and any other real property purchased during the marriage.
Bank Accounts and Investments – Joint and individual accounts opened during the marriage, including savings and investment accounts.
Retirement Accounts and Pensions – Any retirement benefits or pensions accrued during the marriage, which may include 401(k) plans, IRAs, and other forms of retirement savings.
Vehicles – Cars, trucks, or other vehicles purchased during the marriage.
Business Interests – Any businesses established or operated during the marriage.
Debts – This includes credit card debt, personal loans, and mortgages to name a few.
Non-marital property—which refers to assets acquired before the marriage, specific gifts, or inheritances—generally remains with the original owner unless it has been combined with marital assets in such a way that it cannot be separated.
How does the court determine who gets what?
When evaluating how to divide marital property, Illinois courts consider a range of factors to achieve an equitable outcome. These factors include, but are not limited to:
Length of the Marriage – Longer marriages may result in a more equal distribution of assets.
Income and Earning Potential – The court takes into account each spouse’s income, career prospects, and overall earning capacity.
Contributions to the Marital Estate – This includes both financial contributions, such as salaries and savings, as well as non-financial contributions like homemaking, child-rearing, and any sacrifices made for the sake of the family.
Dissipation of Assets – If one spouse has irresponsibly squandered or hidden marital assets, the court may adjust the division to account for that.
Custody Arrangements – If children are involved, the court will consider their best interests, which may include housing stability.
Tax Consequences – The potential tax implications of any property division also influence court decisions.
Prior Agreements – Any prenuptial or postnuptial agreements in place will also play a significant role in the division process.
The ultimate goal of the court is to ensure that both parties leave the marriage with a fair share of the marital assets and liabilities, promoting a balanced resolution for both individuals.
Can we divide property without going to court?
Yes, couples have the option to negotiate a property settlement agreement without resorting to court intervention. This typically involves both parties, often with the assistance of attorneys or professional mediators, coming to a mutual agreement about how to divide their assets and debts. The negotiation process can allow for more personalized outcomes compared to a court ruling. If both parties come to a consensus and the court evaluates and approves the terms as fair and lawful, the agreement is incorporated into the final divorce judgment, settling the matter outside of a trial.
What happens to the marital home?
The marital home can be treated in several ways during the divorce proceedings:
Sale of the Home – The property may be sold, and the profits will be divided between the spouses in a way that reflects their respective stakes in the property.
Buyout – One spouse may choose to keep the home by buying out the other spouse’s share, which could involve a payment or restructuring of other assets to account for the value of the home. –
Custodial Arrangements – Courts frequently award the home to the custodial parent to ensure stability for the children, particularly if the home is their primary residence.
The court will consider various factors, such as the contributions made by each party toward the home, the home’s equity, existing mortgage obligations, and the overall best interests of any children involved, when deciding how to handle the marital home.
Are retirement accounts and pensions divided?
Yes, retirement accounts and pensions are regarded as marital property and are subject to division under Illinois law, provided that contributions were made during the marriage. To avoid tax penalties and ensure a smooth transfer of these accounts, a Qualified Domestic Relations Order (QDRO) is typically required. This legal order allows for the division of retirement assets without triggering tax liabilities. Courts may either split these accounts directly or offset their value against other assets during property division.
What if one spouse handled all the finances or earned most of the income?
Even if one spouse was the sole financial provider or managed the couple’s finances, Illinois law states that both spouses are entitled to a fair share of the marital property accumulated during the marriage. Courts recognize that non-financial contributions—such as caregiving, homemaking, and emotional support—are vital to the marital partnership. As such, these contributions will also be taken into consideration during the asset division process, ensuring that both spouses are treated equitably.
Can asset division be modified after divorce?
In most cases, once the property division has been finalized, it cannot be modified. However, exceptions may arise if new evidence of fraud, concealment, or significant clerical errors comes to light after the judgment has been issued. On the other hand, child support and spousal maintenance (alimony) are more flexible and can be modified if either party experiences a substantial change in their financial circumstances, such as a job loss or a significant increase in income.
What is “dissipation of assets”?
Dissipation of assets refers to instances where one spouse misuses marital assets for purposes unrelated to the marriage after the breakdown of the relationship. Examples of this misappropriation might include spending substantial amounts on an extramarital affair, gambling heavily, or deliberately hiding or isolating funds from the other spouse. Courts retain the authority to penalize the dissipating spouse by compensating the other party with a larger share of the remaining assets as a means of rectifying the unjust loss.
Do prenuptial or postnuptial agreements affect asset division?
Yes, legally enforceable prenuptial and postnuptial agreements can significantly influence the outcome of asset division during a divorce. Such agreements can lay out specific instructions regarding the distribution of assets and debts, and they will be upheld by courts provided they have been created voluntarily, involve full financial disclosure, and meet legal requirements. However, challenges can arise if such agreements are deemed unconscionable—meaning they are unreasonably unfair—or if the proper legal processes were not followed during execution.
How are debts divided in Illinois?
Debts incurred during the marriage, such as mortgages, credit card debts, and personal loans, are typically classified as marital liabilities, which means they must be divided fairly between both spouses. Courts look at various factors to determine this division, including who benefits from the debt (e.g., which spouse has had access to the funds or resources) and who is better positioned to repay it. Conversely, non-marital debts—those that were accrued by one spouse before the marriage—generally remain the responsibility of the spouse who incurred them.
What if we own property in another state or country?
Illinois courts have the jurisdiction to divide properties located outside the state or internationally, provided they are categorized as marital property. However, the division and enforcement of assets across state or national borders can sometimes complicate the process, requiring extra legal steps and cooperation with courts in other jurisdictions. It is crucial for both parties to be open and transparent about all assets, no matter where they are located, to ensure a complete and fair resolution during the divorce proceedings.
How Our Illinois Attorneys Can Help in Asset Division
When you hire our asset division attorneys, they carefully listen to you during the initial consultation and develop a complete understanding of your case. We untangle your finances and conduct a proper valuation of your assets so that we can work out the terms and conditions of a fair settlement. We also guide you on whether the division of your assets is better through mediation or should you go for dispute resolution methods. Our asset division lawyers are well-versed in the property division laws of Illinois.
If you decide to avoid the litigation process, we will assist you in negotiating with your spouse and their lawyer to reach a mutual agreement and work out several other aspects of divorce. This method is mostly preferred because it is cost-effective and saves both spouses from additional stress and frustration. If you want to go with dispute resolution, we will represent you in court and protect your rights.
Contact Our Schaumburg Asset Division Attorneys
At the Law Office of Fedor Kozlov, P.C., we have successfully represented clients in both negotiations and court proceedings and managed to protect their best interests. For more information about asset division during a divorce and how our attorneys can help you,contact the Law Office of Fedor Kozlov, P.C., today at (847) 241-1299 to schedule a consultation.
