Every divorce involves the allocation of marital property. This includes assets as well as liabilities. In order to avoid complications in the divorce process at any point, it’s important to compile a complete list of every asset and liability – both those acquired during your marriage and those acquired prior to your marriage. This includes every asset and liability titled in your name individually and jointly with your spouse.
Why It’s Important to List All Assets and Liabilities in a Divorce
The listing of assets and liabilities plays a critical role in establishing an equitable divorce settlement for both you and your ex-spouse. If you intentionally omit or falsify information regarding your assets and/or liabilities, you may find yourself facing serious consequences, including the possibility of being found in contempt of court.
How Does Illinois Divide Assets and Liabilities in a Divorce?
Illinois is an “equitable division” state, meaning you and your ex-spouse are not required to divide your assets and liabilities equally ( i.e. each of you receiving 50%).
However, before the allocation of marital property can be completed, you will need to determine each and every marital and non-marital asset and liability.
If you acquired anything before the marriage, have received an inheritance, or was gifted something during the marriage, that property is likely considered your separate, non-marital property and is not subject to allocation. There are a few other exceptions that aren’t required to be listed. You can find a full list of exceptions to listing assets and debts in a divorce here.
What Your Assets Include
Your assets include all possessions, properties, accounts, businesses, investments, or any items that have an associated cash value.
Examples of Assets to List in a Divorce
Here is a list of some of the most common assets listed in divorce cases. Please note that the list below is meant only for illustrative purposes and is not meant to be an exhaustive list of all assets. Contact an experienced Illinois divorce attorney for a full list.
- Personal and shared bank accounts
- Retirement accounts
- Real estate properties
- Income properties
- Recreational vehicles such as trailers, boats, motorcycles, etc
- Life insurance policies
- Stocks and bonds
- Intellectual property
- Personal property
What Your Liabilities Include
Your liabilities include any you’ve accumulated during your marriage as well as during your divorce.
Examples of Liabilities to List in a Divorce
Here is a list of some of the most common debts listed in divorce cases. Please note that the list below is meant only for illustrative purposes and is not meant to be an exhaustive list of all liabilities. Your attorney will be able to advise you of any other liabilities you will need to include.
- Mortgage loans
- Home equity loans
- Debts owed to the IRS
- Personal loans
- Auto loans
- Unpaid medical bills
- Credit card bills
- Student loans
A Divorce Attorney Can Assist You with Listing Assets and Liabilities in Your Divorce
It is important to make sure you understand how your marital property will be allocated between you and your spouse in a divorce.
Contact the Law Office of David A. King, P.C., today to discuss your divorce case with our seasoned attorneys.