Is Illinois a ‘community property’ state?

Property division in a divorce can be more complicated than either spouse thinks. In general, all assets and debts will fall into one of three categories: Spouse A’s property, Spouse B’s property and the couple’s marital property. While the spouses retain their own property, states differ on how marital property is divided. Wisconsin, for example, is a community property state. Illinois, however, is an equitable distribution state.

In community property states, marital property is divided 50/50 between the spouses. Wisconsin is one of just 10 states (and Puerto Rico) that follow community property law.

Equitable distribution may result in a 50/50 split, but the decision is based on fairness rather than on equality. For example, a married couple buys an antique car, with Spouse A paying just 30 percent of the purchase price and Spouse B the remainder. If they file for divorce in Illinois, it is possible that Spouse A’s share of the value — even the increased value — will remain at 30 percent.

However, if they divorce in a community property state, the value of the car will be divided equally between them. Spouse A’s 30 percent stake will become a 50 percent stake.

What if Spouse B purchased the car with money inherited from a grandparent? Chances are that the car would not be marital property, so the full value will accrue to Spouse B.

Even if that inheritance was received during the marriage, if Spouse A was not a co-beneficiary, the entirety belongs to Spouse B. It would not be community property. The same is true of a gift made to just one spouse.

What kind of property is considered to be marital property? We’ll answer that in our next post.

Read Our

Recent Blogs

What Are the Common Mistakes to Avoid in a Divorce?

Divorce can be a stressful process, and that makes it easy to make mistakes. Some of these mistakes can cause long-lasting problems, so you…

Read More
How Can I Ensure the Best Interests of My Child in a Divorce?

Going through a divorce is tough on everyone, but it can be especially hard if you have a child that you want to protect…

Read More
How Can Domestic Violence Affect Spousal Support?

If you are the victim of domestic violence, you certainly do not want to end up paying spousal support to your abusive partner. Unfortunately,…

Read More

Contact Us Today!

  • This field is for validation purposes and should be left unchanged.
Group of attorneys