Archive for the ‘Asset Division’ Category

Deciding Which Spouse Keeps the Family Home in a Divorce

April 10th, 2015 at 5:35 pm

family home, division of property, Illinois divorce attorneyDivorces are often fraught with uncertainty. Will I have to pay alimony? Who will get custody of the kids? Who gets to keep the house? During this difficult process, it is crucial that you keep yourself grounded and educated about how divorces work. Multiple factors play into which spouse keeps the family house after a divorce, if either spouse keeps it at all. In some cases, the couple is required to sell the house and split the proceeds.

If you want to keep your family home following your divorce, talk to your spouse about your desire and why it is important to you. If you choose to divorce through mediation or collaborative law, you will need to work with your spouse to develop a settlement that achieves both of your goals. After discussing your intention to keep the house with your spouse, the next step is to speak with an attorney about your rights, legal options, and how your case’s unique circumstances may affect your opportunity to keep your house.

The Family Home as Marital Property

The most important factor used to determine a house’s position and rightful ownership during a couple’s property division process is whether or not the house is considered to be marital property. Generally, marital property is any property that was purchased or significantly developed during the marriage. If you and your spouse purchased the home together after marrying, your home is marital property. Likewise, if either partner owned it prior to the marriage but the spouse made mortgage payments or significantly contributed to the home’s value through improvement projects after marrying, it may be considered to be marital property.

Under the Illinois Marriage and Dissolution of Marriage Act, Illinois is an equitable distribution state, which means that marital property is not necessarily split 50/50 during a divorce. Rather, it is divided between the spouses according to each partner’s contribution to the property during the marriage and their needs following the divorce.

Factors Considered When Determining Which Spouse Keeps the House

One of the most prominent factors considered when the court must determine which spouse keeps the family home is which spouse has primary custody of the couple’s children. If the court determines that it is in the children’s best interest to remain in the home and, by extension, their community and school district, the court may award the family home to the parent with whom the children will live most or all of the time. Sometimes, this award is temporary and the couple is required to sell the house once the youngest child turns 18.

Even if a spouse is awarded the home, that spouse may be required to buy out his or her former partner’s interest in the home. In some cases, the higher-earning spouse may be required to continue to pay for the home’s insurance or mortgage as part of a support arrangement. Either of these scenarios may be a possibility for you, depending on your current economic circumstances and your divorce’s details.

Chicago Divorce Attorneys

Call 312-345-9999 to schedule your free legal consultation with the skilled Chicago divorce attorneys at Anderson & Associates, P.C. to learn more about how the court may determine who keeps the family home in your divorce. We proudly serve our clients in five convenient locations: Wheaton, Orland Park, Northbrook, Schaumburg, and downtown Chicago.

Be Wary of Hidden Assets in Divorce

March 13th, 2015 at 8:00 am

hidden assets, division of property, Chicago family law attorneysWhen a couple has reached the end of their marriage and divorce is imminent, both spouses are not often equally prepared. Frequently, the partner with more financial control has begun to plan to for the future and, in some cases, may be taking steps to manipulate asset valuation so as to individually benefit when property is divided in the impending divorce. Although undervalued or hidden assets may be more common among wealthier divorcing couples, lower net-worth families can be affected as much or more by the deceptive and illegal practice.

Who Hides Assets?

Few married couples share responsibility for the family’s finances equally. In many situations, one spouse is responsible for the household budget by paying bills, managing investments, and making all or most major financial decisions. He or she typically maintains unfettered access to all joint accounts and monetary resources. The partner with control of the family’s money is often the one with most opportunity and temptation to use the situation to his or her advantage. However, if the spouse tasked with financial responsibility is not the primary wage-earner, the spouse with the higher income may be inclined to keep assets and resources away from joint accounts, while putting money aside for the post-divorce future.

Where to Find Hidden Assets

While those who hide assets typically do so for one reason – affecting the division of property to his or own benefit – the methods used may differ greatly depending on the situation. Financial experts, however, have identified several of the most common ways a partner may attempt to hide marital assets:

  • Easily Undervalued Purchases: New artwork for her home office or parts for the classic car he is restoring may be more valuable than they seem.
  • Reporting Lower Income at Tax Time: Despite the risk of an IRS audit and subsequent penalties, only officially reported income is used in most financial analyses.
  • Paying More at Tax Time: An intentional overpayment to the IRS or other creditors may be recovered at a later date, presumably to be refunded after completion of the divorce proceedings.
  • Investment Transfers: Stock accounts may be transferred to relatives, business associates, or dummy companies, again, to be recovered later.
  • Physical Hidden Cash: Sometimes, hiding assets may be as simple as putting cash in safety deposit box or under the bed in a shoebox.

Help in Uncovering Hidden Assets

There are countless ways in which a determined individual can try to affect the outcome of property and asset division in divorce. With the rise of digital technology, it has become much more difficult, though, to keep hidden assets from being discovered by legal and financial professionals. Forensic accountants are specifically trained to identify and quantify irregularities in financial records, and in conjunction with a qualified lawyer, can provide invaluable assistance to many complex divorce situations.

If you have reason to believe your spouse has been hiding assets and a divorce seems imminent, our team is ready to go to work for you. Contact an experienced Illinois property division attorney today at Anderson & Associates, P.C. We offer convenient office locations in Schaumburg, Wheaton, Northbrook, Orland Park, and downtown Chicago.

Dividing Marital Assets During Divorce

February 6th, 2015 at 10:33 am

Illinois dividing assets, Chicago property division lawyerYou or your spouse has filed for divorce, and the question on your mind is: “Who gets what?” Most married couples bring assets into the marriage and accumulate additional property during the course of the marriage. Then, when a married couple separates, everything must be divided. The division of assets can be hard, and sometimes get heated, when divorcing couples do not agree with what the other should get.

It can be confusing to understand how assets are divided during divorce proceedings. Even if both parties agree the marriage is no longer working and to file for divorce, figuring out what is considered marital assets can be complicated. Illinois is an “equitable distribution” state, meaning the division of property and assets is not necessarily equal, but rather what is fair for both parties.

If the parties cannot agree on how their property will be divided, a judge will decide how to equitably divide the assets by analyzing several different factors. The length of marriage, value of all assets, what each party brought into the marriage, income and earning potential of each spouse, and standard of living during the marriage are just some of the factors that the court will examine. Dividing marital assets can be easy if neither person wants to keep anything and both parties agree to sell everything and split the profits. The situation gets more complicated if the parties can’t agree, or if the divorce involves intangible assets, which can make the proceedings take longer.

All property [houses, 401(k)s or pension plans, bank accounts, stocks, boats, cars, etc.] no matter how they are titled, can be considered marital assets if they were acquired during a marriage. Even if a house is titled in one party’s name, it can be considered marital property if it was bought during the marriage or if money from a joint account is used to pay for the mortgage, repairs, or upgrades. Classifying and dividing marital assets is not a straightforward process and can become overwhelming for many.

If you are considering filing for divorce, or your spouse has already filed for a divorce, contact one of our Chicago property division attorneys. Anderson & Associates, P.C., assists clients in Illinois from one of our five offices conveniently located in downtown Chicago, Schaumburg, Wheaton, Northbrook, and Orland Park. We are experienced in family law proceedings that range from simple to complex divorce. We can help you understand your next step.