Who Is Entitled To The High-Value Assets During A Divorce?

 Posted on January 27, 2023 in Division of Property

Illinois is an equitable distribution state, meaning that each party is entitled to a fair share of marital assets. Marital assets are items that were acquired while the parties were married. It does not matter if it was simply one of the parties that were making these purchases, if it was purchased or earned during the marriage, then both parties are entitled to it. The exception to this is if the asset was obtained through inheritance or gift.

High-value marital assets are one of the biggest issues that prolong divorces and make them more complex than they need to be. If the parties are willing to discuss these matters with a level head, they may be able to negotiate a fair divide between their assets. If they cannot reach an agreement, the court divides marital assets according to the “equitable distribution” doctrine.

Dividing High-Value Marital Assets

When going through a divorce with high-value assets, both parties need a full understanding of all the assets they own and acquired during their marriage and the value of these assets. The value of these assets is often up for debate, so it is recommended to have them professionally valued by an appraiser. Here are some important assets that the spouses may need to address:

• High-Value Purchases (jewelry, artwork, collectibles, etc.) - These items can be high in financial value, but also in sentimental value. This is an example of when the parties may want to consider getting these items appraised to confirm their value. Knowing and understanding their worth may help the parties decide on a fair agreement for how to divide them.

• Investments - It is easy to assume that splitting up any type of investment would be simple. However, it is important to consider the tax consequences that may follow if a party is considering selling these assets.

• Co-owned Businesses - If a business was established or purchased during the marriage, this is likely a marital estate. In this case, the parties will need to negotiate and find a way to fairly divide their business. If the business was acquired by a party before the marriage, this would be considered a non-marital estate. However, the increase in the business’s value may be a marital asset.

• Real Estate Properties - One spouse may buy out the other spouse’s share of the real estate properties or they can sell the properties and divide the profits. Either way, these decisions will take careful negotiation.

• Retirement Plans - Retirement assets are often divided using a qualified domestic relations order (QDRO).

Contact a Kane County Divorce Lawyer

Aurora divorce attorney Matthew M. Williams knows how complex divorce is and the tension caused when deciding how to divide assets. For legal assistance during the asset division process, contact The Law Office of Matthew M. Williams, P.C. at 630-409-8184.

Source:

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