Illinois couples going through a high-asset divorce have just as many concerns as those with an average financial situation. Two major issues of concern are property and debt division. This is what to expect while going through a divorce.
Property division in divorce
Illinois is an equitable distribution state, meaning assets are divided in a way deemed fair by the court. That doesn’t necessarily mean that everything is split 50/50 between spouses in a high-asset divorce; instead, the judge will order property division to occur equitably based on each person’s financial situation. Factors that help determine this include the length of the marriage, economic circumstances, each spouse’s financial contributions and other aspects like prenuptial or postnuptial agreements. If the marriage produced children, the court also considers how each party has provided for and raised them when determining property division.
Some property is considered “separate” such as anything owned before the marriage, inherited or gifted solely to one spouse. As long as this property has not been commingled, it remains separate and isn’t subject to division.
Dividing debt in divorce
Debt division is similar to property division in a high-asset divorce as it isn’t divided 50/50. The court examines each spouse’s contributions to the debts and each person’s financial situation when deciding how debt should be divided.
Debts incurred by one spouse before marriage are separate and that person’s sole responsibility. Anything jointly acquired after the marriage might be more complex. For example, if you and your spouse took out a mortgage on your home and owe on it, you’re both obligated to pay it off if only one of you chooses to keep the home.
Many high-asset divorces involve prenups. If this is the case, you may have it easier where property and debt division is concerned.