How Are Different Kinds of Assets Divided in Illinois Divorces?

 Posted on August 29, 2025 in Divorce

When a couple gets divorced, Illinois law requires an equitable distribution of marital assets; however, "equitable" does not always mean equal. The court considers many factors when deciding which spouse gets what. For families in McHenry County and Kane County, understanding how different types of assets are treated under Illinois law is a crucial step in setting realistic expectations and preparing for negotiations.

As of August 2025, Illinois continues to follow the rules outlined in the Illinois Marriage and Dissolution of Marriage Act (750 ILCS 5/503). These statutes explain how property is classified and divided when spouses separate. If you are thinking about divorce, talk to our McHenry County, IL divorce lawyer. We have decades of experience and can help you through even the most complex asset division negotiations. 

Dividing Marital vs. Non-Marital Property in a Divorce

The first step is determining whether a given asset is marital or non-marital. Marital property generally includes assets obtained during the marriage, regardless of which spouse’s name is on the title. Non-marital property includes assets acquired before the marriage, inheritances, or gifts specifically given to one spouse.

Sometimes arguments about ownership of property come up when non-marital and marital property become mixed together. For example, if one spouse owned a home before marriage but both contributed to paying the mortgage, the court may consider the home partially marital. These situations often require detailed financial records and sometimes expert testimony to sort out.

Dividing Managing Real Estate and Homes in a Divorce

Real estate, including the family home, is often one of the most valuable and emotionally charged assets in divorce. The court may award the home to one spouse, especially if children will continue to live there, or it may order the home sold and the proceeds divided. Investment properties and vacation homes are also divided based on their classification as marital or non-marital.

Dividing Retirement Accounts and Pensions in a Divorce

Retirement accounts, pensions, and 401(k)s are frequently among the largest assets in a divorce. Illinois law allows for these accounts to be divided using a Qualified Domestic Relations Order (QDRO). This order enables funds to be transferred without tax penalties. The division is based on contributions made during the marriage, while money invested before marriage may remain non-marital.

Dividing Business Interests and Ownership in a Divorce

When a spouse owns or operates a business, property division becomes even more complex. The court may order a business valuation to determine how much, or which parts, of a business are marital vs. non-marital. Business assets are not often simply liquidated; instead, one spouse may retain ownership while compensating the other with different assets or payments.

Dividing Personal Property and Debts in a Divorce

Furniture, vehicles, bank accounts, and other personal property are divided equitably, just like larger assets. The court also considers marital debts. Credit cards, mortgages, and student loans taken out during the marriage are generally divided along with the assets.

Contact a McHenry County, IL Divorce Lawyer

Dividing property in divorce is complicated, and each case requires careful analysis. For nearly 30 years, The Thomas Law Office has helped families manage challenging financial issues in divorce. Call 847-426-7990 today to schedule a consultation with a Kane County, IL property division attorney. Our team has the experience and resources to guide you through the process and pursue a fair resolution.