Is Illinois a Community Property State or an Equitable Distribution State?

 Posted on July 10, 2025 in Asset Division

Illinois is an equitable distribution state. Unlike a community property state, your assets are divided fairly rather than strictly equally. The first step in dividing property during Illinois divorce proceedings is to categorize your assets and debts as marital or non-marital. Working with an experienced DuPage County, IL divorce attorney ensures you understand your rights and what you can do to protect your assets, even in an uncontested divorce.

What Counts as Marital Property in Illinois?

According to Section 503 of the Illinois Marriage and Dissolution of Marriage Act, marital property refers to assets and debts acquired by either spouse during the marriage. This means that funds, retirement benefits earned during the marriage, real estate purchased while married, and even certain business interests can fall under marital property.

It is important to note that the law presumes that any property acquired during the marriage is marital unless proven otherwise. Even when an asset is officially in one spouse’s name, it can still be subject to equitable division. Courts consider several factors when dividing marital assets fairly. The length of your marriage and each spouse’s contribution to the marital estate will play a role in the court’s final decision. The court will also consider your economic circumstances.

What Counts as Non-Marital Property in Illinois?

Unlike marital property, non-marital property remains under the ownership of one spouse. Examples of non-marital property can include:

• Assets gifted to or inherited by one spouse

• Property owned by a spouse before the marriage

• Income from non-marital property, if it is not commingled

• Property excluded by a valid prenuptial or postnuptial agreement under the Uniform Premarital Agreement Act

• Compensation for personal injury damages, excluding lost wages

• Property acquired after a legal separation judgment

The line between marital and non-marital assets is not always clear. Our attorneys will work with you to ensure that you receive a fair distribution and that your separate property remains yours.

What Can Complicate the Division of Assets in an Illinois Divorce?

Commingled assets can make property division more complex. Commingling occurs when non-marital property becomes so intertwined with marital property that it loses its separate identity. For example, depositing inherited funds into a joint bank account and using them for shared expenses commingles them. The court normally classifies inheritance as non-marital. However, in this case, it could be marital property.

High-asset divorces can introduce further complications, as these cases often involve business interests and large asset portfolios. Valuing these assets accurately can require expert appraisals, forensic accounting, and detailed analysis of financial records. Disputes may arise over hidden assets, business goodwill, or tax implications of dividing certain property. The emotional stakes in high-asset divorce can also add layers of conflict and make negotiations more challenging.

Schedule a Consultation With a Lombard, IL Divorce Attorney Today

Dividing property in an Illinois divorce can be complex. Significant assets or complex financial issues make it more complicated. The Wheaton, IL divorce lawyers at A. Traub & Associates can help protect your interests and guide you through the process. Call us today at 630-426-0196 to schedule a consultation and discuss your legal options.