Arlington Heights, IL 60005
What Happens to Gifts and Inheritance in an Illinois Divorce?
The asset division process of divorce can get complicated, especially when you have a significant amount of property. Inheritance and gifts of value count as assets in Illinois, and the laws that govern them are specific. If you have questions about what will happen to your assets in a divorce, an Arlington Heights, IL divorce attorney can explain how Illinois family courts categorize separate and marital property and what situations can make the process more complex.
Are Gifts Considered Marital Property in Illinois?
In general, gifts belong to the person who received them, making them separate property. However, there are unique circumstances to consider, and ultimately, property characterization can change from case to case. For example, wedding gifts are typically characterized as marital property because they belong to both spouses. However, sometimes a wedding gift is specifically given to one spouse, which could make it separate property.
Gifts exchanged between spouses are typically considered non-marital property. For example, in a 1994 Illinois divorce case, the husband created an IRA for his wife and contributed to it for years. During the assets division process of the divorce, he tried to claim it was marital property, calling it a retirement investment. However, the court ruled that his contributions were a gift and characterized the account as separate property belonging to the wife.
Is Inheritance Divided During an Illinois Divorce?
Because Illinois is an equitable distribution state, assets are split based on what is fair, which does not always result in a 50/50 split. Where inherited assets are kept, how they are used, and to what extent they are mixed with marital property will all play a role in determining whether they are divided in a divorce.
Can You Protect Inheritance Before Divorce in Illinois?
Protecting inheritance is often a proactive process. Some common ways that people ensure inheritance remains separate property in the event of divorce include:
-
Signing a prenuptial or postnuptial agreement that identifies inheritances as non-marital assets
-
Avoiding the commingling of funds
-
Maintaining detailed records of how inheritance is kept and used
-
Placing inheritance into a trust
The commingling of funds can make it more difficult to understand where your inheritance may stand in a divorce, but an experienced legal representative can offer insight.
Contact a Rolling Meadows, IL Asset Division Attorney Today
If you have questions about the division of gifts and inheritance in an Illinois divorce, you likely have more assets and liabilities to consider. The Arlington Heights, IL divorce lawyer at the Law Offices of Donald J. Cosley will handle every aspect of your case, speaking with you directly and offering personal and knowledgeable representation. Call 847-253-3100 to schedule a free consultation today and find out how an experienced attorney can protect your rights during divorce.