Menu
Search

May 11,2019

Property Division

How Are Marital Investments Divided In A Divorce?

HomeBlogProperty DivisionHow Are Marital Investments Divided In A Divorce?

Marital property is subject to equitable division in Illinois, including investment assets. The equitable division of property may result in an equal division of assets in a divorce action; however, equitable is not equal. If the parties cannot reach a settlement agreement regarding property division, the court determines an equitable distribution of property based on the evidence presented to the court and applicable laws. An Illinois divorce attorney can provide the legal advice necessary to protect your right to a fair division of investment property during your divorce.

What is Investment Property?

Investment property may include mutual funds, stocks, commodity accounts, bonds, stock options, and retirement accounts. Real estate might be considered investment property if it was purchased to generate income, to take advantage of certain tax benefits, or to profit from the appreciation of the property. Rental property is a common example of investment real estate.  Property acquired during the marriage is marital property unless a spouse can prove otherwise.

Valuing Investment Assets for Property Division

One of the most difficult aspects of dividing investment assets during a divorce is establishing a value for the investment, especially real estate. A financial account is typically easier to value than stocks because stock values can change substantially from day to day when the stock market is volatile. However, if an account contains both income or investments made during the marriage and amounts earned or deposited before the marriage, the calculation of the marital portion of the asset can become more complex.

Real estate investments can be the most difficult to value because you must consider the actual fair market value of the real estate if it were sold, but you must also calculate the potential for generating income when calculating the value for property division.

In some cases, expert witnesses and financial professionals may be required to assist in the valuation of investment assets. Individuals the parties may consider retaining to assist with the valuation of investment property include realtors, financial advisors, stock-brokers, certified public accountants, appraisers, and forensic accountants.

Requesting a Temporary Restraining Order

If a divorce is particularly antagonistic, a spouse may consider filing a petition requesting that the judge grants a Temporary Restraining Order (TRO) regarding investment assets. A TRO prevents one of the spouses from attempting to divest or dispose of assets during the divorce proceeding. The assets are “frozen” so that neither spouse can transfer, liquidate, or other dispose of assets pending a final order of the court.

If a spouse believes the other spouse may attempt to conceal or liquidate investment assets, the spouse may want to request a TRO in the initial divorce petition. A party may request the judge to sign the TRO ex parte without a hearing. After the assets are protected, a hearing may be held to determine if further restrictions are necessary to protect marital assets.

Contact an Illinois Divorce Attorney to Discuss Your Situation

Your situation is unique. Therefore, you do not want to base your decisions on general information or the outcome of another case. It is always best to consult an Illinois divorce attorney as soon as possible to discuss your case and the steps you should take to protect your best interests and your financial future.  Contact the Illinois property division attorneys at Goodman Law Firm today for help.

Share:

Facebook Twitter shop insta

Archives

LATEST POSTS

Related Posts

Financially Untangling Yourself from Your Spouse

06 Jan 2021

Getting a Fair Property Settlement in your Illinois Divorce On the surface, dividing assets during a divorce may seem straightforward.  In Illinois, all marital property acquired during the marriage must…

Things You Should Know About Your Illinois Divorce

05 Jan 2021

Every divorce proceeds in unique ways, and no two are ever exactly alike. There are, however, some divorce basics that apply to every Illinois divorce. If you’re facing a divorce,…

Preparing for Your High Asset Divorce

23 Dec 2020

Divorce is complicated, but a high asset divorce is that much more so. One of the components of divorce that’s most likely to become contentious is the division of marital…

Feel Free to Ask a Question

We are here to answer any questions you may have about our legal services and how we can help with your family law problem.

We make every effort to return your email
or call the same business day or within 24 hours.

At Goodman Law Firm, we take your privacy seriously. Please leave us only a private cell phone number or private email address where you may be reached.

Call Now Button