When people get married, they move in with each other. This usually means buying a house together. The down payment on the house is usually non-marital (they just got married). The down payment for that house is not always evenly split between the two parties. If the couple later divorces, does the party who paid the entire down payment or the bigger share of the down payment get a credit for that down payment when the court divides their marital assets? How Illinois Courts Divide Marital Assets The first thing an Illinois divorce court does is distinguish between marital and non-marital property. “The court shall make specific factual findings as to its classification of assets as marital or non-marital property, values, and other factual findings supporting its property award.” 750 ILCS 5/503(a) Marital property is any property acquired by either party after the wedding and before the entry of the divorce judgment. “‘[M]arital property’ means all property, including debts and other obligations, acquired by either spouse subsequent to the marriage” 750 ILCS 5/503(a) “For purposes of distribution of property, all property acquired by either spouse after the marriage and before a judgment of dissolution of marriage or declaration of invalidity of marriage is presumed marital property.” 750 ILCS 5/503(b) Marital Houses vs. Non-Marital Down Payments In An Illinois Divorce If a house was purchased after the wedding, that house will be marital property and can be divided by an Illinois divorce court. An Illinois divorce court “shall divide the marital property without regard to marital misconduct in just proportions” 750 ILCS 5/503(d) The down payment on the house if it came from money earned before the wedding is non-marital property. “[N]on-marital property” [is] property acquired before the marriage” 750 ILCS 5/503(a)(6) Non-marital property stays with its original owner after an Illinois divorce. “[T]he court shall assign each spouse’s non-marital property to that spouse.” 750 ILCS 5/503(d) But, the non-marital down payment money got mixed up with the marital house. Is it all marital now and, thus, all divisible? If you’re the spouse who paid the non-marital down payment, you are going to want that down payment to be considered non-marital. If you are the spouse who did not provide the down payment, you are going to argue that the down payment is now an immutable part of the marital house and is, therefore divisible. Arguing For A Credit For […]
