When you go through a divorce or dissolution, you may require an arrangement for financial compensation. This involves dividing assets, and planning for daily expenses of living (maintenance).
Financial disclosure
Ex-partners are required to make "full and honest disclosure" concerning his or her financial circumstances. This covers loan accounts, bank accounts, superannuation, investments and trust assets or corporate assets.
Matrimonial assets
When a couple gets a divorce, assets must be split. financial settlement The question of what constitutes marital and what is separate property can make or break an agreement on financial matters. This is especially important in cases of large sums of assets.
Marital assets are the things that the spouse and you accumulate together during the wedding. Similar to other states Illinois courts must take into account several factors when dividing marital assets. The factors include the time span of the marriage, the worth of the assets and the contribution of each party to the accumulation of these assets. A court could also look at what amount of debt that was due in the process of marriage.
Non-marital assets refer to those you owned prior to the date of your marriage or you acquired as a gift or inheritance from a third party. If you want to retain the ownership of your separate property but you are not able to combine it with marital property. You can be treated as having marital property if mix your marital and separate property and utilize them for marital purposes including buying a home.
The appreciation of an asset that was previously considered to be separate may even be turned into marital assets. If you own a stock that you purchased prior to your wedding and then you invested it into mutual funds both of you as well as the other spouse fought hard for and then sell, the investment could be subject to an equitable distribution in the event of divorce.
Separate property could also turn into marital property if you exchange the property for another asset or services that are deemed by the court as equally valuable. You can include a vacation home into the marital estate if you received the property as a reward for your efforts or those of your spouse.
As you can imagine, it's not easy to figure out. You must disclose all the assets and liabilities you have before the court to determine an accurate estimate. The court may take a decision on your disclosures and may also agree with the value you provide.
How much is the future value of a particular asset?
Although it might seem contrary to reason, the judge also takes into account the worth of a specific item when deciding on how it should be allocated. The original artwork is an example. It may just be worth $750 today, but an expert appraiser might believe it will be worth much more later on. To determine an equitable distribution, a court will need to weigh up its value against other items or services.
It is important to note that the division of the debt and assets does not directly relate to marital fault, such as the abuse or infidelity. The division of assets are more economic as opposed to marital problems. Therefore, it is vital to have your spouse and you talk about any financial mishaps that could have been committed during the marriage so that the court may examine this in making their decision on the settlement of financial assets.