Divorce can be an emotionally and legally turbulent process, particularly when it comes to dividing assets acquired during the marriage. In Illinois, the division of commingled assets can add an additional layer of complexity. In this blog, we will explore the factors that influence the division of commingled assets in an Illinois divorce, providing clarity on who may be entitled to them and how these decisions are made. Discuss with your divorce attorney how commingled assets may be a factor in your divorce and how such assets should be equitably divided. 

A Simple Way to Understand Commingled Assets

Commingled assets refer to funds or properties that have become mingled or mixed during the course of a marriage. For instance, if money from a rental property owned by just one spouse is deposited into a joint bank account and spent on marital expenses, the money becomes commingled and may no longer be the sole property of the spouse who owns the rental property. In Illinois, determining the status of these assets and ensuring a fair division can be challenging, as the court follows equitable distribution rather than a precise 50/50 split. When it comes to commingled assets, the court will consider various factors, including:

• The intent of the spouses when they deposited the funds

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Deciding what to do with the family home is often one of the most difficult aspects of a divorce. It is important to know what key factors to consider when deciding whether to fight for the house or let your partner have it, providing you with the understanding you need to make an informed decision. If you are going through a divorce and are deciding whether to fight for the marital home, discuss the matter with your attorney before you make any lasting decisions. 

Economic Considerations 

Of course, financial considerations play a crucial role in determining whether to fight for the house. Consider things like the mortgage balance, property value, and ability to maintain the home independently. Assess whether you can afford the mortgage, taxes, insurance, and maintenance costs. With the assistance of your divorce attorney, consider consulting with a financial advisor to fully understand the potential impact and long-term financial responsibilities before reaching a decision. 

Emotional Bond 

In many divorces, both spouses have a deep emotional connection with the home. Whether staying in the house will help or hurt your healing process is worth considering. Divorce is a very emotional time. You do not want your judgment to become clouded simply because you have an emotional attachment to the home. Sometimes, it may be better for your emotional well-being and that of your children if you start fresh in a new place without the memories and associations tied to the marital home. 

When a couple of modest means decides to divorce, they can expect a fairly complicated process, particularly when it comes time to divide assets. However, when a couple with significant assets gets a divorce, everything that is complicated about a divorce where the couple has “average” assets is amplified significantly. In a high-asset divorce, the stakes are higher, and the complexities often require specialized legal knowledge. Today, we will be discussing what is most important to know regarding high-asset divorce cases. If you are looking to dissolve your marriage and you and your spouse are coming to the table with significant assets to divide, contact an attorney with knowledge in this area so they can assist you with the unique challenges involved in such cases. 

Defining a High-Asset Divorce

A high-asset divorce typically involves significant financial holdings. Though there is no universally accepted threshold for what qualifies as high-asset, couples with a combined net worth of one million dollars and up are often considered a part of this category. High-value assets such as real estate, businesses, investments, retirement accounts, stocks, and luxury items are all common aspects of cases involving high-asset divorces. 

Three Challenges in High-Asset Divorces

The first challenge in high-asset divorce is, of course, asset division. In Illinois, the equitable distribution of assets is a fundamental aspect of divorce proceedings. In high-asset cases, the sheer volume and variety of assets can make the process arduous. Valuing and dividing complex holdings, like multiple properties, intricate investment portfolios, or offshore accounts, may require the specialized knowledge of a financial professional like a forensic accountant. 

Credit card debt is an issue for so many people across the United States. You may be shocked to learn that in 2021, a typical American's average amount of credit card debt was $5,525. If not taken care of proactively, credit card debt can significantly hinder people financially. Sometimes, debt may be carried for years and become a tremendous burden.

While credit card debt is an issue for most Americans, it becomes an even bigger issue in the event of divorce. If you and your spouse are pursuing a divorce, you may be interested in what happens to credit card debt. If you are getting a divorce and are concerned about how credit card debt will be handled, consider contacting a knowledgeable Illinois divorce attorney who will ensure your rights remain protected throughout the divorce process. 

How Is Credit Card Split in Illinois Divorce? 

Understand that if the credit card debt were acquired during the marriage, the creditor would likely cite you and your spouse as the party responsible for it. On the other hand, if either spouse incurred the debt before they became married, the debt is likely to be considered personal debt and must be paid for by whoever bought the items.

Few people know how challenging and complex the financial side of a divorce truly is. There are so many financial considerations that need to be made when a divorce is taking place. If the divorcing parties have children, which parent will pay child support? Or how will the distribution of marital property be handled? All of these financial questions and more arise when going through a divorce.

During divorce proceedings, an incredibly challenging subject and often an area of contention is whether each spouse is truthful regarding financial information. The situation can become even more complicated if one spouse acts in a way that causes financial harm to the other. For example, suppose you are getting a divorce and believe your spouse is recklessly indulging themselves in expenditures unrelated to the marriage, like using money to fuel a gambling or drug addiction. In that case, you may be able to file for a dissipation of assets claim. To understand how to proceed while ensuring your rights and best interests are protected, contact an experienced divorce attorney who has worked with cases where the dissipation of assets was a factor during divorce proceedings.

What Constitutes a Dissipation of Assets? 

All assets acquired by either spouse during a marriage are referred to as the marital estate. During a divorce, couples must split up the marital estate equitably. Unfortunately, there are certain cases where the reckless actions of a spouse led to a drop in the value of the marital estate. In some instances, these reckless actions may constitute dissipation of assets. If a spouse behaves in such a manner, the other spouse should bring these matters to the court's attention to ensure that the marital estate is divided appropriately. Asset dissipation can look like a lot of different behaviors, including the following: