In the event of divorce or dissolution, you may require an agreement on financial matters. It involves the division of assets as well as arranging the costs of daily living (maintenance).
Financial disclosure
The ex-partner of yours is obliged to give a full and transparent declarations' of the financial status of their relationship. This includes bank accounts, Superannuation, loans and investments in addition to trust assets or assets belonging to companies.
Matrimonial assets
When assets are divided, a couple divorces. What is considered the property of marital and separate owners is essential to ensure a favorable financial settlement. This topic is crucial when dealing with large amounts of assets.
Marital assets are the things that the spouse and you accumulate as a couple during your marriage. As in other states, Illinois courts are required to be aware of several aspects to divide marital assets. The court will consider the duration of the marriage and value of assets, along with the contributions from both partners to the accumulation. The court can also be able to consider any debt that was incurred as a result of the marriage.
The non-marital property is anything you owned prior to your wedding or received from another person as a gift or inheritance. If you want to retain the ownership of your separate property and assets, you can't combine them with marital property. You can be treated as having marital property if you mix your marital and separate assets and make use of these for marital use, like buying a house.
The growth of an asset that was previously separate can become marital assets. If you own a stock that you bought before your wedding, that you later invested into a mutual fund that each spouse worked hard to increase and then sell, the investment could be subject to equitable division in the case divorce.
Separate property can also become financial settlement marital property, if you swap it for other assets or services deemed by the court as comparable in value. If you have received a vacation home to perform work by yourself or your spouse then it could be considered as part of the marital estate.
It can be a complicated scenario. In order for a judge to establish an accurate and fair price the client must give full details of your assets as well as obligations. The court will make a decision based on the details you provide or may be in agreement with the valuation you have provided.
What's the significance of future appreciation on the asset?
Even though it's counterintuitive but the court must look at a potential future worth of an asset before choosing how to divide it. The original artwork is an example. It may only be worth $500 today however an appraiser who is an expert might believe it will be valued much higher later on. For the purpose of deciding on an equitable distribution, the court would be required to assess the worth of the item against other items or services.
It is vital to understand that the division of financial assets and liabilities does not have anything to do with marital fault, such as infidelity or abuse. The division of assets is more about the economics of it more than the marital issue. It is vital to have your spouse and you discuss any economic misconduct that might have taken place during your marriage to ensure that the court may take this into account when making a decision regarding the financial settlement.