The dissolution of a marriage necessitates the division of the marital estate (all assets accumulated during the marriage), which is often a significant source of contention. When the parties vehemently disagree over the disposition of valued assets, negotiations may fail, leading to a contested divorce. Understanding whether Illinois employs the principle of equitable distribution or community property is essential. For counsel and proficient representation during this challenging time, we encourage you to contact an experienced Peoria County Marital Property Division Lawyer.
How Is Marital Property Divided During an Illinois Divorce?
In Illinois, couples are initially encouraged to divide their marital property outside of court, either through negotiation or mediation. However, if the parties cannot reach an agreement, the court will intervene. Illinois operates under the principle of equitable distribution. This means the court does not automatically divide property 50/50. Instead, the court considers each party’s current situation and future needs to determine a fair division, using a specific set of factors. The following factors are typically taken into account to determine a fair split:
- The length of the marriage
- The age and health of each spouse
- Each spouse’s contributions, including non-financial ones (homemaker, childcare)
- The lifestyle established during the marriage
- Any pre- or post-nuptial agreements
- Any relevant custody matters
- Any dissipation (If a spouse wasted marital assets)
- The tax consequences
What Counts as “Marital Property” in Illinois?
Generally, all assets and debts accumulated during the marriage are considered marital property. Title ownership is typically irrelevant. If an asset was acquired using income earned or effort expended during the marriage, it is presumed ot be marital property, regardless of whether it is titled solely in one spouse’s name. Nevertheless, exceptions exist for property acquired through a gift or inheritance. Additionally, complexities arise when non-marital assets are mixed (commingled) with marital assets.
Marital property can include:
- Income earned by either party during the marriage
- Real estate
- Credit card debt
- Retirement accounts and pensions
- Savings, investments, and business interests
- Stock options and deferred compensation
Conversely, separate property is defined as any assets owned prior to the marriage. Separate property is exempt from equitable distribution. Examples of such assets may include personal injury compensation, gifts received from third parties, inheritances acquired during the marriage, and any other property held before the commencement of the marital union.
How Are Retirement Benefits Divided?
It is essential to note that dividing retirement benefits often requires a Qualified Domestic Relations Order (QDRO) in Illinois. This vital legal instrument mandates the equitable division of retirement benefits during a marriage. It achieves this by directing the plan administrator on how to allocate a portion of the funds to a former spouse, child, or dependent (the “alternate payee”). It also permits the alternate payee to receive these benefits without immediately incurring taxes or penalties. Given the complexity of retirement plan language, it is in your best interest to engage a qualified attorney.
At Butler, Giraudo, & Meister, P.C., we are dedicated to fighting for your best interests throughout the legal process. Connect with our legal team today to safeguard your hard-earned assets.
