High-asset divorce cases in Illinois bring unique challenges due to the complexity of the financial matters involved. As experienced divorce attorneys, we understand that high-net-worth individuals often have substantial assets, including businesses, investments, real estate, and retirement accounts. Illinois is an equitable distribution state, meaning that assets aren’t always split 50/50 but rather in a manner that’s considered fair by the court. This distinction adds another layer of complexity when determining what constitutes a fair division. In these cases, it’s essential to identify, evaluate, and classify assets accurately to ensure a fair outcome. Let’s now discuss some of the key challenges that often arise.
Valuation Of Assets
Accurate valuation of assets during a divorce is very important. Some assets, such as businesses, real estate, retirement plans, and stocks, require professional appraisals. According to Illinois law, all marital property must be valued and disclosed, as outlined in 750 ILCS 5/503. Disagreements often arise regarding the worth of these assets, which can lead to prolonged disputes. In some cases, it is necessary for us to work closely with financial experts to ensure assets are appropriately valued to protect our clients’ interests.
Business Ownership And Division
Business ownership often becomes a contentious issue in high-asset divorces. Determining whether the business is marital property or separate property can be challenging. Illinois courts will consider factors like whether the business was started before or during the marriage and the extent of each spouse’s involvement. According to 750 ILCS 5/503, even if one spouse is the sole owner, the other spouse may still be entitled to a portion of the business’s value. Protecting business interests requires strategic planning, whether through negotiations or litigation.
Hidden Assets And Financial Discrepancies
In some high-asset divorce cases, one spouse might attempt to hide assets or underreport income to protect their financial interests. Illinois law requires full financial disclosure, but this doesn’t prevent attempts at deceit. Forensic accountants are helpful when searching for hidden assets or discrepancies. Failure to disclose assets can lead to legal consequences, including the possibility of the court awarding a more significant portion of assets to the honest spouse.
Tax Implications
Tax considerations play a role in high-asset divorce cases. The division of assets, including stocks, bonds, retirement accounts, and real estate, can create tax consequences. Transferring assets could also trigger tax liabilities. Understanding how Illinois and federal tax laws interact ensures that both parties are aware of the potential ramifications.
Complex Investment Portfolios And Retirement Accounts
High-asset individuals often have diversified investment portfolios, including stocks, bonds, real estate holdings, and retirement accounts. Dividing these assets can be challenging. Illinois law treats the growth in value of these investments during marriage as marital property. Properly dividing these assets requires financial expertise to avoid unintended tax penalties and ensure compliance with legal requirements.
Illinois High-Asset Divorce Case FAQs
What Makes A Divorce Case A “High-Asset” Divorce?
A divorce is considered “high-asset” when it involves substantial assets, such as business ownership, investment portfolios, real estate holdings, retirement accounts, and other high-value properties.
How Does Illinois Handle The Division Of Marital Property In High-Asset Divorce Cases?
Illinois follows the equitable distribution model under 750 ILCS 5/503, meaning that marital assets are divided fairly but not necessarily equally. The court considers various factors, such as the length of the marriage, each spouse’s contributions, and future financial needs, to determine a fair distribution.
Can A Prenuptial Agreement Impact The Outcome Of A High-Asset Divorce?
Yes, a valid prenuptial agreement can significantly impact the division of assets in a high-asset divorce. Illinois courts will generally uphold prenuptial agreements, provided they are fair, entered into voluntarily, and do not violate public policy. However, any ambiguities or outdated terms could be contested during the divorce.
What Happens If One Spouse Attempts To Hide Assets During The Divorce Process?
Illinois law requires full disclosure of all assets during a divorce. If a spouse is found to be hiding assets, the court can impose penalties, which may include awarding a larger share of the marital property to the other spouse or holding the dishonest spouse in contempt. Utilizing forensic accountants is a common strategy to uncover hidden assets.
Call Us To Schedule A Free Consultation With Our Chicago High-Asset Divorce Lawyer
If you’re facing the complexities of high-asset divorce in Illinois, Bruning & Associates, P.C. has the experience and knowledge to protect your financial interests. Contact our Chicago high-asset divorce lawyers at Bruning & Associates, P.C. by calling (815) 455-3000 to schedule a free consultation. Let us help you navigate the complexities of your divorce and protect your financial future. Our legal team understands the nuances of Illinois divorce law and can provide the guidance you need to achieve a fair resolution. We serve clients in Chicago, Crystal Lake, Schaumburg, and the entire Chicagoland metro area.
