Divorce can be a very unpleasant and difficult process, and one of the most challenging parts of it is the division of property. Illinois is an equitable distribution state, which means that marital property is divided fairly, but not necessarily equally. Many people make common mistakes during the property division process, which can result in getting less than what they are entitled to. In this article, we will discuss how to avoid common mistakes during Illinois property division.
- Mistake #1: Failing to Properly Identify and Value Assets
- Mistake #2: Letting Emotions Guide Decisions
- Mistake #3: Failing to Understand the Difference Between Marital and Non-Marital Property
- Mistake #4: Agreeing to a Settlement Without Proper Legal Advice
- Mistake #5: Failing to Consider Tax Implications
- Conclusion
Mistake #1: Failing to Properly Identify and Value Assets
One of the biggest mistakes people make during property division is failing to identify all of their assets. All assets must be disclosed during the divorce process, including bank accounts, real estate, retirement accounts, businesses, investments, and personal property. Failing to disclose an asset can have serious legal consequences.
Another mistake people make is failing to properly value their assets. It’s important to have a professional appraisal or valuation of assets, especially when dealing with real estate or businesses. Without proper valuation, one spouse may end up with an asset that is worth much less than they thought.
Mistake #2: Letting Emotions Guide Decisions
Divorce is an emotional time, and it’s easy to let those emotions guide decisions. However, it’s important to remember that property division is a legal process, and decisions should be made based on what’s fair and equitable, not what feels right in the moment.
It’s also important to avoid making decisions based on spite or revenge. Trying to hurt your spouse by taking certain assets or requesting spousal support beyond reasonable limits can result in a long, drawn-out legal battle that can be emotionally and financially draining.
Mistake #3: Failing to Understand the Difference Between Marital and Non-Marital Property
In Illinois, marital property is any property acquired during the marriage, while non-marital property is property acquired before the marriage or through inheritance or gift during the marriage. Non-marital property is exempt from property division, while marital property is subject to equitable distribution.
One common mistake people make is assuming that all property acquired during the marriage is marital property. However, there are exceptions, such as property obtained through inheritance or gift that was kept separate from marital assets. It’s important to have a clear understanding of the difference between marital and non-marital property to ensure that property division is fair and equitable.
Mistake #4: Agreeing to a Settlement Without Proper Legal Advice
It’s tempting to try to settle a divorce quickly, especially when emotions are high and it seems like the easiest way to move on. However, agreeing to a settlement without proper legal advice can have serious consequences. Without a clear understanding of your legal rights, you may end up settling for less than what you’re entitled to.
It’s important to consult with a qualified family law attorney before agreeing to any settlement. An attorney can help you understand your legal rights, assess the value of assets, and negotiate a fair settlement.
Mistake #5: Failing to Consider Tax Implications
Property division can have significant tax implications, especially if there are assets such as retirement accounts or real estate involved. It’s important to consider the tax consequences of property division when negotiating a settlement.
For example, dividing a retirement account may result in tax penalties and additional fees. Transferring ownership of a home may trigger capital gains taxes. A qualified accountant or financial advisor can help you understand the tax implications of property division and make informed decisions.
Conclusion
Property division can be one of the most challenging parts of a divorce, but avoiding common mistakes can help ensure a fair and equitable outcome. By identifying and valuing all assets, keeping emotions in check, understanding the difference between marital and non-marital property, seeking legal advice, and considering tax implications, you can ensure that your property division process goes as smoothly as possible. Remember that divorce is a legal process and that making informed decisions with the help of qualified professionals can help you move forward with confidence.