Married individuals who belong to the baby boomer generation are most likely to get divorced. In fact, 40% of baby boomers were already divorced as of 2010. A couple who has been married for decades usually has more assets such as real estate, Social Security benefits and retirement accounts. If you’re an Illinois resident entering a high-asset divorce, here are some important things to know.
Property in a high-asset divorce
Tangible or intangible items that have monetary value are classified as assets in all types of divorces, including a high-net-worth divorce. This means that a couple who is getting a divorce might take advantage of these assets by cashing out on an insurance policy or withdrawing funds from a bank account.
Other examples include real estate or land. Personal property can also be assets. Personal property defines the non-real estate items people own such as family antiques, jewelry or vehicles.
Money or cash equivalents can also be assets. These include retirement plans, stocks and bonds, annuities, life insurance and bank accounts.
How are debts handled?
If you’re involved in a high-asset divorce, you may be dealing with debts. These could include multiple mortgages for residential or commercial properties, leisure vehicle loans, watercraft loans or insurance policies, and credit cards with high spending limits. It is best for spouses to work out which debt each party will pay during and after the divorce.
Divorcing couples can also settle financial matters pertaining to their marital debts in court. The judge will likely assign the debt to the spouse whose name is on the debt, but couples don’t want to leave these important decisions to judges should try to negotiate the terms in a settlement.