When married couples in Illinois divorce, dividing up marital property can get complicated if one or both spouses own a business. Illinois has particular laws about classifying and splitting up business assets that add complexity.
Categorizing Business as Separate or Marital Property
Typically, in Illinois, any property acquired during marriage is considered "marital" and is divided in divorce. But there are exceptions - gifts or inheritances usually stay separate property, as does property exchanged for separate assets unless they have been commingled with marital assets. Prenups and postnups can also define separate properties.
If a spouse started a business before marriage and kept it financially independent, it may stay their separate property. But if marital money expanded the business, or the other spouse helped run it, the increase in value could be marital property.
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