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Tips for Dividing Marital Assets During a Time of Economic Uncertainty

Posted on in Asset Division

Algonquin divorce attorney asset division

Under any circumstances, divorce can put a financial strain on couples as they prepare to divide their assets. This aspect of the divorce process may be even more difficult during the COVID-19 pandemic, a time when property valuations can suffer due to the struggling economy and many people are concerned about job security. However, with the assistance of a skilled divorce attorney and the willingness to explore alternative solutions, you may be able to reach an agreement that protects both spouses from excessive financial hardship.

How Are Assets Divided in an Illinois Divorce?

Under Illinois law, most assets acquired by either spouse throughout the course of the marriage are usually considered marital property. During a divorce, marital property is to be distributed equitably, meaning that the division is usually not 50/50 but instead based on factors including the length of the marriage, the terms of any prenuptial or postnuptial agreement, child custody arrangements, and each spouse’s contributions to the acquisition of marital property. Each spouse’s health, financial situation, and earning potential are also considered, meaning that if one spouse has been impacted more severely by COVID-19, assets may be distributed accordingly.

Accounting for the Challenges of COVID-19 in Your Divorce Agreement

You may stand the best chance at reducing financial hardship if you and your spouse are willing to use divorce mediation, which allows you to come to a collaborative resolution. Specific strategies to consider for your division of assets during the coronavirus pandemic may include:

  • Maintaining joint possession of certain assets: Because homes, businesses, and other properties may be valued lower during the recent economic downturn, you and your spouse may choose to retain joint ownership of certain properties until a later time when valuations have stabilized and you can ensure a fair distribution.

  • Agreeing to a distribution based on a percentage of assets: Alternatively, you and your spouse could agree before your divorce that each of you will receive a certain percentage of marital assets, but calculate the actual dollar amounts based on valuation at a future date.

  • Including spousal support in your agreement: Spousal support is common for any Illinois divorce in which there is a financial imbalance between spouses, and if one or both spouses have suffered financially due to COVID-19, this should be considered in your divorce agreement. Spousal support payments can also be legally modified in the future after a significant change in income.

While it is not always feasible, you may also decide it is best to delay your divorce entirely until you and your spouse are able to achieve a more stable financial footing.

Contact a Kane County Divorce Lawyer Today

At the accomplished Law Offices of Benedict Schwarz, II PC, we have experience with both divorce litigation and mediation, and we can advise you as to the best approach for achieving a fair division of assets during or after the COVID-19 pandemic. We are committed to helping our clients maintain their quality of life during this challenging time. Contact a St. Charles divorce attorney today at 847-428-7725 to request a free consultation.

 

Source:

https://www.ilga.gov/legislation/ilcs/documents/075000050k503.htm

 

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