As part of a divorce or dissolution, you could need to reach an agreement on financial matters. This includes arrangements for daily life expenses (maintenance) and also how you split your assets.
Financial disclosure
Ex-partners must provide "full and open declarations" regarding his or her financial circumstances. It includes banks, loans as well as superannuation and investments. the trust and company assets.
Matrimonial assets
Assets have to be divided when couples divorce. The issue of what is separated from marital property is a key factor in a financial settlement. This is especially important in cases of large sums of assets.
The assets that you and your spouse have accrued together with your spouse in the course of the course of your marriage is considered the joint property. Like other states, Illinois courts have to take into account several factors when dividing marital assets. The court must consider the duration of the marriage and value of assets, in addition to the contribution by both spouses to the accumulation. A court could also consider any debt which was due in the course of marriage.
The property that is not marital you owned prior to your wedding day or that you received from another person as a gift or inheritance. Your separate property however you are not permitted to mix it up with marital property. The law allows you to consider having marital property if you combine your separate and marital property and utilize them for marital purposes including buying a home.
Additionally, the increase in the value of an individual property can turn it into marital property. In the example above, if possess a piece of stock that you purchased before the wedding and then transferred to a mutual fund that you and your spouse have worked hard to increase the value of, it might be susceptible to equitable distribution during a divorce.
If you exchange separate property for assets or services that the court deems to be equivalent in worth, they can be considered a part of the marital estate. If you were given an apartment for vacation in exchange for a job performed by your spouse or you then it could be considered an asset of marital property.
This is a difficult situation. You have to declare all the assets and liabilities you have to the court in order for it to arrive at an accurate estimate. If you agree with an estimate, but the court is obliged by law to make an assessment based upon that information.
What about the value of future appreciation in the investment?
Though it may appear contrary to common sense, a court is also considering the possible value of an object when deciding the way it will be distributed. The original artwork such as a painting, for instance, might only be worth $500 today However, an expert appraiser could believe it to be worth much more later on. The court must weigh this worth against other services and assets being made available in order to reach a the appropriate decision regarding equitable distribution.
The separation of debts and assets is not connected with marital crimes like adultery or abuse. Separation of assets financial settlement is more about the economics of it as opposed to marital problems. Therefore, it is vital to have your spouse and you be open about any mishaps in the economy which may have occurred during your marriage to ensure that the court will consider this when making a determination about the settlement of financial assets.