Divorce can be a complex and emotionally challenging process, and one important aspect that needs to be addressed is the division of debt. In DuPage County, Illinois, the courts use a principle known as "equitable distribution" to determine how debts should be divided between divorcing spouses. Here is an overview of what you need to know about division of debt during a divorce in DuPage County.

How Debt is Divided in DuPage County

Equitable distribution means that the debts are divided in a way that is fair and just, taking into account the financial circumstances of both parties. Although couples are encouraged to find a debt allocation that is agreeable to both partners, this is not always possible. When a couple cannot decide on debt division issues themselves, the court will consider factors such as the length of the marriage, the income and earning potential of each spouse, and the ability of each spouse to pay their debts.

In some cases, the court may order one spouse to pay a certain amount of the other spouse's debts. For example, if one spouse has a higher income or more assets, the court may order them to pay a larger share of the couple's debts. On the other hand, if both spouses have similar financial resources, the debts may be divided equally between them.

Considerations about money and property are frequently among the most challenging aspects of divorce. Depending on the contents of your marital estate, dividing your assets can be both very complicated and profoundly emotional.

At the Andrew Cores Family Law Group, we are aware of how challenging divorces may be when a company or professional practice is considered to be a component of the marital estate. If you are getting divorced, it is important to understand the process of business valuation and your rights to your marital assets. 

Three Ways to Value Your Business During a Divorce

There is no one-size-fits-all method for valuing a business during a divorce, and an experienced lawyer and forensic accountant will often select one of the following three approaches:

An important part of every Illinois divorce is the marital property division arrangement. Ideally, spouses work together to devise a plan that allows both spouses to protect their interests and priorities. However, this is easier said than done. When both spouses have sentimental attachments to objects or when one spouse has an object collection of great financial worth, dividing ownership of these objects can become quite complicated. If you are thinking about divorce in Illinois and you want to protect your collectors’ items, read on.

Are My Collectibles Marital Property?

Spouses who have spent years or even decades collecting items may feel strongly that these belongings are their personal property and should not be marital property. But years of hard work invested in growing a collection does not mean it belongs exclusively to the collector if items were purchased with marital funds, and, unfortunately, both spouses’ incomes are considered marital property. An exception to this may be if a spouse bought an item and gave it as a gift to the other spouse; in this case, proving that the item was a gift may still be difficult.

Valuing Collections and Collectors’ Items

The next step in determining what will happen to collectibles in a divorce is accurately assessing the value of these items. Valuation experts are often helpful when items are unique, expensive, or difficult to compare to other items. For example, a one-of-a-kind baseball card can be hard to value when similar items are not available for comparison. In this case, a valuation expert will try to assess the fair market value of an item using special techniques and the help of other professional appraisers.

As the average age of marriage in Illinois increases, many couples are getting married and living in a home that one spouse already owns. Years later, when the couple gets divorced, determining whether the home is marital property can prove trickier than anticipated. If you are considering divorce in DuPage County, IL, and are curious about how your home may be treated in the asset division process, read on.

Is a Home Personal or Marital Property?

If one spouse already owned a home outright before the marriage, and the other spouse moved in once the marriage began, the home will likely be seen as the personal property of the spouse who previously owned it. Generally speaking, assets and debt that were owned by one spouse before a marriage remain the property of that spouse after a divorce.

However, this can get complicated if the other spouse helped pay for significant renovations or if the house was not owned in full when the marriage began. Even if one spouse never technically paid for the home because he or she was engaged in the full-time effort of raising children if the house was paid off using marital money (which is any money earned by either spouse during the marriage), at least part of the house will likely be seen as marital property.

After a couple is married, combining finances, managing budgets, and running a household for many years is a very challenging endeavor and it will likely come as no surprise to most people that financial disagreements are one of the most common reasons couples in Illinois get divorced.

During the divorce process, marital assets must be divided and distributed. As with marriage, finances during divorce can be a very contentious subject. This can be especially true when one spouse is a spendthrift, has substance abuse problems, wantonly gambles, or otherwise wastes a couple’s assets. In cases like these, a temporary financial restraining order (TRO) may be necessary.

What Is a Temporary Financial Restraining Order?

Some states have automatic financial restraining orders that kick in once someone files for divorce. But in Illinois, a spouse must apply for a TRO. A TRO allows spouses to ensure the other spouse does not waste marital property during the divorce process. Many high-net-worth couples use TROs, but anyone can get one if they are filing for divorce and are worried their spouse will be reckless with finances.