It is possible that you have deal with a financial problem within the divorce process. It includes agreements for your daily living expenses (maintenance) and also how you divide your assets.
Financial disclosure
Your former partner is required to give full and open information' regarding their financial circumstances. It includes bank accounts, loans and superannuation funds, as well as investments, trusts or assets of the company.
Matrimonial assets
The assets must be divided when couples divorce. The issue of what is marital and what is separate property can make or break a financial settlement. This is crucial for people with significant assets.
Your marital assets amassed with your spouse over the course of wedding are considered jointly owned property. In the same way as other states, Illinois courts must look at a range of variables to divide marital assets. This includes the length of the marriage, as well as the value of the assets as well as the contribution of each party to their accumulation. Also, the court will take into account any debt that was incurred in the process of marriage.
Non-marital property refers to anything you owned before your wedding day or that you received from someone else as a present or inheritance. You can keep your separate property but aren't allowed to mix it with any marital assets. If you add an amount that is marital to your property that is separate and later use the commingled property for reasons related to marriage including the purchase of homes, the courts can make it a marital asset and share it with the soon-to-be ex-spouse.
The growth of an asset that was previously separate can be transformed into marital assets. For example, if you have a stock you bought before the wedding and then put into a mutual fund with your spouse, which you invested in to the point of becoming subject to equitable distribution in the event of a divorce.
Separate property may also be considered marital property when you trade it in exchange for assets or services that are deemed by the judge to be comparable in value. You can include a vacation house in the marital property if you got it as a reward or incentive for your efforts or those of your spouse.
As you can financial settlement imagine, this can get complicated. The requirement is to report all the assets and liabilities you have before the court to establish the most accurate amount. You may agree to an appraisal, however the court is required under law to render a ruling based on that information.
What is the worth of future appreciation on an asset?
While it may seem counterintuitive but the court must look at a potential future value of an asset when choosing how to divide the asset. The original art work may only be worth $500 but an appraiser might believe it's worth much more. The court will have to weigh this worth against various other items and services provided to arrive at a the decision on equitable distribution.
It is vital to understand that the separation of assets and debts does not necessarily have to do with the marital faults, like an affair or abusing. In fact, the division of the assets have a lot more to do matters than all the other issues that could be a part of the wedding. It is important to discuss with your spouse any financial misconduct during the union. It will enable the court to take it into consideration while deciding the settlement.