When a marriage involves significant assets, the divorce process can become more complex, and protecting your wealth becomes a top priority. In Illinois, high-asset divorces often involve complex and intricate legal issues, from business valuations to the division of retirement accounts, real estate, and other valuable holdings. The key to protecting your wealth is understanding Illinois’ legal framework and ensuring that your interests are represented at every step.
At our firm, we understand the emotional and financial strain that a divorce can bring, especially when substantial assets are at stake. Divorce doesn’t just end a marriage; it requires us to disentangle years or even decades of financial interdependence. This process involves identifying and valuing marital property and addressing issues like spousal support, taxes, and protecting inherited or premarital assets. Illinois divorce laws outline how these issues are handled. Our attorneys follow these laws closely to ensure a fair and equitable outcome for our clients.
The Basics of Asset Division in Illinois
Illinois is an equitable distribution state, which means that marital property is divided in a fair, though not necessarily equal, manner. According to the Illinois Marriage and Dissolution of Marriage Act (IMDMA) (750 ILCS 5/503), any assets acquired during the marriage are considered marital property and subject to division. This includes income, real estate, investments, and retirement accounts. However, assets that were owned by one spouse before the marriage or were received as gifts or inheritances may be considered non-marital property, provided they were kept separate from marital assets.
In high-asset divorces, one of the primary concerns is determining what constitutes marital and non-marital property. For example, using inherited funds to purchase a home with both spouse’s names on the deed will complicate your divorce case. This is why our firm will work hard to trace the origin of funds to protect our clients’ non-marital assets from being included in the marital estate.
Valuation Of Complex Assets
A significant challenge in high-asset divorces is the accurate valuation of complex assets. This includes businesses, real estate, stocks, and retirement accounts. In Illinois, all marital assets must be valued. Illinois law, particularly under 750 ILCS 5/503(d), outlines the factors that courts must consider when distributing marital assets, including the length of the marriage, the financial circumstances of each spouse, and any contributions one spouse made to the acquisition or preservation of the asset.
Business ownership often becomes a major issue in high-asset divorces. If one or both spouses own a business, the business must be valued. Our divorce attorney will make sure that this valuation is conducted fairly, as an incorrect valuation could significantly impact the financial outcome of the divorce.
Spousal Maintenance And Its Impact on Wealth
Spousal maintenance (also known as alimony) is another important issue in high-asset divorces. Illinois courts can award maintenance based on several factors, such as:
- the income and property of each spouse,
- the needs of each party,
- the length of the marriage, and
- the standard of living that was established during the marriage.
When the stakes are high, the duration and amount of spousal maintenance can be substantial. Our legal professionals carefully analyze each case and fight for your best interests.
Tax Implications
High-net-worth divorces often have tax consequences. The division of retirement accounts, the sale of real estate, and the sale of stock all have tax implications that must be addressed. For instance, dividing certain retirement accounts may require a Qualified Domestic Relations Order (QDRO) to avoid early withdrawal penalties and tax liabilities. Our attorney will work closely with financial advisors to structure settlements in a way that minimizes the tax burden for our clients.
Call Our High-Asset Divorce Attorney In Chicago For Dedication Legal Representation
If you are facing a high-asset divorce in Chicago, protecting your wealth requires experienced legal representation. Attorney Michael C. Craven understands the unique challenges of high-net-worth divorces and is committed to securing the best possible outcome for our clients. Contact our high-asset divorce attorney in Chicago at (312) 621-5234 to schedule a consultation. We represent clients throughout all of Chicago, Illinois and surrounding areas, and are ready to help you safeguard your financial future.
