Tracing and Commingling Assets In An Illinois Divorce by Russell D. Knight

Описание: Tracing and Commingling Assets In An Illinois Divorce by Russell D. Knight

Tracing and commingling are major issues in an Illinois divorce, especially when premarital assets become mixed with marital property. Under Illinois law, non-marital property is generally assigned back to the original owner, but the process becomes more complex when transactions occur during the marriage.

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A Chicago divorce lawyer often sees spouses assume that tracing will automatically protect non-marital assets. In reality, Illinois divorce courts apply strict rules. Commingling can cause non-marital property to lose its identity, leading to transmutation into marital property. This is why tracing requires detailed proof, often supported by bank statements and complete financial records.

The Illinois Marriage and Dissolution of Marriage Act, including 750 ILCS 5/503, defines how marital property and non-marital property are classified. Property acquired after marriage is presumed marital property, and the burden of proof falls on the party claiming an exception. Clear and convincing evidence is required to overcome the marital property presumption.

Russell D. Knight of the Law Office of Russell D. Knight helps clients address disputes involving tracing, reimbursement, and non-marital claims in an Illinois divorce court. These disputes often involve real estate, joint checking accounts, mortgage payments, and commingled funds that were used to purchase newly acquired property.

Illinois law allows reimbursement when one estate contributes to another, even when transmutation occurs. However, reimbursement is not available when contributions cannot be traced or when the court determines the transfer was intended as a gift to the marital estate. Forensic accounting is often necessary in cases involving long-term commingling and fluctuating asset values.

Retirement accounts receive different treatment. Pension benefits, individual retirement accounts, and other tax-deferred accounts may include both marital and non-marital portions without full transmutation. Division is handled through a Qualified Domestic Relations Order (QDRO) under ERISA and 26 U.S. Code § 414(p).

Tracing also becomes essential when dissipation of assets is alleged. A notice of dissipation can require full accounting of marital property spent during an irreconcilable breakdown of the marriage. Courts may award funds back to the spouse who did not dissipate assets, and documentation is critical.

Illinois divorce does not require an equal division of marital property, but an equitable division based on contribution and financial factors. Russell D. Knight, an Illinois divorce lawyer with extensive family law experience, provides direct guidance for clients facing commingling, tracing disputes, and property division issues in Chicago divorce cases.

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