In Illinois, the division of assets during a divorce follows the principle of equitable distribution. This means that the court divides most marital property in a way that it deems fair, though not always equal.
However, when it comes to inherited wealth and assets, the rules can be different.
Inheritance as non-marital property
Inherited wealth is generally non-marital property by Illinois marital property definitions. This means that if one spouse receives an inheritance, it typically remains that spouse’s individual property and is not subject to division during a divorce. However, this protection is not absolute and can depend on how the individual handles the inherited assets throughout the marriage.
If the inherited wealth remains separate from marital assets, it is more likely to remain with the spouse who inherited it. For example, if a spouse inherits money and keeps it in a separate bank account under their name only, the court is more likely to view it as non-marital property. Similarly, if a spouse inherits real estate and keeps it solely in their name, that property might not split during the divorce.
When inheritance becomes marital property
Problems can arise if inherited assets commingle with marital property. Commingling can happen if one spouse mixes inherited wealth with marital assets. For example, if someone deposits inherited wealth into a joint bank account or uses it to pay for a shared home, the court may consider it as marital property. Once inherited wealth becomes marital property, it is subject to asset division during a divorce.
Another factor to consider is appreciation. If the value of inherited assets increases during the marriage, the increase might become marital property. This is especially true if both spouses contributed to that appreciation. Such a thing commonly occurs when both spouses contribute to the improvement of an inherited home, leading to an increase in value that is subject to division.
To avoid complications, it is important for individuals to keep inherited assets separate and clearly distinguish them from marital property. This can help ensure that inherited wealth remains protected during a divorce.