Rental properties can be a point of contention in any Illinois divorce. Understanding whether or not a rental property is considered marital property will go a long way in determining how it will be divided during divorce proceedings. Anyone who plans to dissolve a marriage and owns rental properties should also understand Illinois laws and the rights and responsibilities regarding them. An attorney with experience handling these cases will be helpful during a property division hearing regarding your rental assets.
What is Marital Property?
In Illinois, marital property is most property or assets acquired during a marriage. Any property acquired before a marriage is considered non-marital property. Exceptions to marital property considerations are:
- Assets excluded in a premarital or postmarital agreement
- Property acquired through inheritance or gift
Commingling assets can turn an otherwise non-marital property into marital property. Non-marital property can become marital property if both spouses contribute to its increase in value. Contributing finances toward repairs or maintenance that accumulate an increase in value for a property by the non-owner spouse may cause the property to become a marital asset.
Is Rental Property Considered Marital Property?
Rental property can be considered marital property if acquired during the marriage. So long as the property falls under the definition of marital property, it will be considered as such. This rule is in effect regardless of whose name the property is under. A property is marital when acquired during a marriage, as is any liabilities for debts or mortgages incurred.
How is Rental Property Divided in a Divorce?
Rental property is divided up in court in the same manner as any other property. That is to say, all property is presumed to be distributed fairly and equitably. The Illinois court will consider many factors when determining what is fair and equitable, such as:
- The property’s value
- Your marriage duration
- Each spouse’s economic circumstances
- Prior marriage obligations
- Premarital agreement and postmarital agreement
- Children’s needs, if applicable
- Tax considerations
- Each spouse’s contributions
Divorcing couples may choose to divide the rental properties amicably before allowing a judge to divide the property on their behalf. So long as the divide is considered fair and equitable, a judge will normally grant the couple’s wishes.
One spouse can opt to buy out the other spouse’s portion of the rental property. This often involves an appraiser to determine the value of the property before a couple can decide on what is a fair amount for their half.
A couple could decide that other property is worth their portion of the rental property and choose to divide the assets in this way. Other assets could include retirement accounts, the family home, or other assets they deem more valuable to them.
Lastly, a couple could sell the rental property and divide the proceeds. Again, it would be important to have an appraiser value the property before engaging in a sale to ensure both parties receive an equitable and fair portion.
Contact a DuPage County, IL Divorce Attorney
Divorce proceedings bring many points of contention between couples that need to be rectified. Illinois requires all marital property to be divided fairly. To help achieve the best outcome for your share of the assets, you will want to employ an experienced Naperville, IL property distribution lawyer. [[title]] has years of experience with complex property division cases. Call [[phone]] to schedule an appointment today to discuss your options.