Understanding Inheritance and Marital Assets in Illinois
Getting a divorce in Illinois can be a complex and challenging legal situation. Different states have different laws when it comes to divorce and separation, especially regarding property distribution.
All U.S states follow either a community or equitable property distribution approach. Illinois follows an equitable approach to dividing marital assets.
Marital assets include anything acquired after the date of marriage regardless of whose name it is in, with a few exceptions, such as:
- property acquired before the marriage and not put into joint ownership;
- property acquired by gift or inheritance and not put into joint ownership; or
- property to remain in one party’s name by a pre or post-nuptial agreement.
In community property states, everything acquired during the marriage is usually split equally. In Illinois, a court can split property equally or can award different amounts (ownership interest) as it may determine to be fair and equitable.
But are inherited assets considered a marital asset in Illinois?
The short answer is no. The inherited property would be nonmarital property unless they are co-mingled (putting them into joint ownership with your spouse). From our team at Diamond Legal in McHenry, Illinois, here’s a closer look at what this means for you and your spouse.
Marital Property and Separate Property
Marital property refers to all assets that a couple earns or acquires during their marriage, including:
- Trains, Planes, and Automobiles (yes, we did that on purpose…)
- Real Estate
- Pets
- Jewelry
- Money
- Pensions, IRAs, 401k, Employment Benefits
- Stocks and Bonds
- Businesses
Marital Property can also include debts and other obligations that either spouse acquires during the marriage.
Everything that a person owns before their marriage –including property they received as a gift or inherited — is separate (non-marital) property. This property type is not divided and is retained by the person who owns it.
Some examples of non-marital property are:
- a gift or an inheritance from a third party,
- a gift between spouses, or
- property converted to non-marital property by legal agreement.
Note that any gift or inheritance received by any of the two spouses should be documented. So when the court asks, they should be able to show their legal ownership of their separate assets on paper.
If I Inherit Money, is it Marital or Non-Marital Property?
If you get the money and keep it separate from other money, it will usually remain non-marital property.
If you commingle it by either putting it in a joint account or mixing it with marital funds, it may become marital property.
Here is the list of things that can potentially turn your non-marital property into a marital property:
- Depositing your inheritance money or money received as a gift in a joint bank account with your spouse.
- Taking out a mortgage as a couple on non-marital real estate.
- Re-titling things to be in both names.
Contact an Illinois Family Law Attorney Today
Whether or not you have proof of your non-marital assets, our attorneys at Diamond Divorce Law are ready to dedicate themselves to your cause. We’ve helped clients navigate divorce and all the family law difficulties that go with it for decades, and we’re ready to help you. Whether it’s handling the division of assets or fighting for your rights in child custody and support, our team has the experience and knowledge to guide you through the process.
It’s important to remember that just because something may be considered non-marital property doesn’t mean it won’t be subject to negotiation during a divorce. If you have concerns about protecting your assets or want to ensure a fair distribution of property, it’s crucial that you seek advice from a qualified family law attorney.
At Diamond Legal, we understand the emotional toll that a divorce can take on individuals and families. That’s why we strive to provide compassionate and personalized representation for each of our clients. We know that every family is unique and requires individualized attention, which is why we will work closely with you to understand your specific needs and goals.
Contact us today to schedule a consultation with one of our experienced family law attorneys. We can help you navigate the complex legal process of divorce and protect your assets during this difficult time.