Many people going through a divorce assume that marital property will automatically be divided 50/50. In Illinois, that is not necessarily the case.
Illinois follows a principle known as equitable distribution, which means marital property is divided based on what is considered fair under the circumstances rather than automatically split equally between spouses.
But before property can be divided in an Illinois divorce, there is another important question: What is considered marital property?
What Is Considered Marital Property in Illinois?
Generally, property acquired during the marriage may be considered marital property. However, determining whether an asset is marital or non-marital is not always straightforward.
A home purchased during the marriage may be relatively simple to classify. Other assets can raise more complicated questions, including:
- A business started before the marriage that increased in value during the marriage
- An inheritance received by one spouse and later used for marital expenses
- A retirement account funded both before and during the marriage
- Property owned before the marriage that increased substantially in value
- Bank or investment accounts containing both marital and non-marital funds
How an asset was acquired, how it was used, and what happened to it throughout the marriage can all be important when determining whether it is considered marital property.
What Is Non-Marital Property in an Illinois Divorce?
Certain assets may be considered non-marital property, including, in some circumstances, property acquired before the marriage, inheritances, and gifts made specifically to one spouse.
However, the way an asset is handled during the marriage can complicate its classification.
For example, questions may arise when inherited funds are placed into a joint account, marital funds are used toward property owned before the marriage, or a separately owned business grows during the marriage.
Determining whether an asset is marital or non-marital may require looking beyond whose name appears on the account, deed, or title.
Does Equitable Distribution Mean a 50/50 Split in Illinois?
No. Equitable distribution does not automatically mean an equal 50/50 division of marital property.
Once marital property has been identified, a number of factors may affect how the marital estate is ultimately divided. Depending on the circumstances, these may include the length of the marriage, each spouse’s financial circumstances, contributions to the marital estate, and other relevant considerations.
In some divorces, an equal division may be appropriate. In others, an equitable division may look different.
Why Property Classification Matters During Divorce
Understanding which assets are marital and which may be non-marital can have a significant impact on the financial outcome of a divorce.
This can be especially important when a marital estate includes assets such as:
- Real estate
- Businesses or ownership interests
- Retirement accounts
- Investments
- Inheritances
- Other significant or complex assets
Understanding how your property may be classified and divided can help you make more informed decisions as you navigate the divorce process.
Frequently Asked Questions About Marital Property in Illinois
Q: Is marital property always divided 50/50 in an Illinois divorce?
A: No. Illinois follows equitable distribution, which means marital property is divided in a manner considered fair based on the circumstances. An equitable division is not necessarily an equal 50/50 split.
Q: What is considered marital property in Illinois?
A: Generally, property acquired during the marriage may be considered marital property. This can include real estate, retirement accounts, investments, business interests, and other assets. How and when an asset was acquired and how it was used during the marriage can affect its classification.
Q: Is property I owned before marriage considered marital property?
A: Property acquired before marriage may be considered non-marital property. However, what happens to that property during the marriage can affect the analysis, particularly if marital funds are contributed to it or assets are combined.
Q: Is an inheritance considered marital property in Illinois?
A: An inheritance received by one spouse may generally be considered non-marital property. However, questions can arise if inherited assets are combined with marital assets or used in ways that make it more difficult to distinguish between marital and non-marital property.
Q: What happens to a retirement account in an Illinois divorce?
A: Retirement accounts can contain both marital and non-marital portions, particularly when contributions were made both before and during the marriage. Determining what portion is part of the marital estate can be an important step before addressing how the account may be divided.
Q: What happens to a business during a divorce in Illinois?
A: How a business is treated can depend on factors such as when it was established, how its value changed during the marriage, and the circumstances surrounding each spouse’s involvement. Business ownership and valuation can make property division more complex.
Q: Questions About Marital Property or Property Division in Illinois?
A: Every marital estate is different. If you are considering divorce and have questions about marital property, non-marital property, or equitable distribution in Illinois, the Kelleher + Holland Family Law team can help you understand how these issues may apply to your particular circumstances.
Contact us today to speak with a member of our Family Law team.
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This post is for informational purposes only and does not constitute legal advice. Contact our team for guidance specific to your situation.