4 Things to Consider in a High-Net-Worth Divorce in Illinois

 Posted on May 21, 2024 in Illinois Divorce

The legal process for divorce in Illinois is complex, but it is even more so for high-net-worth divorces. A high-net-worth divorce is one where at least one spouse has a significant amount of wealth. Illinois law does not specify a number, but a divorce involving assets totaling $1 million or more is generally considered to be a high-net-worth divorce.

When it comes to this kind of divorce, it is best to seek out an Illinois divorce lawyer who understands the financial issues that a high-net-worth couple will need to address. This article will discuss four such issues.

Property Division

In any divorce, both spouses are entitled to what Illinois law calls marital property. This refers to assets that were acquired by either spouse during a marriage, with certain exceptions. If a spouse earned something or bought something during the marriage, the other spouse is entitled to their fair share of it. 

If the marital assets exceed $1 million, the situation becomes more complicated. This is because the court, perhaps with the help of a forensic accountant, needs to figure out how to divide assets like:

• Investments

• Real estate

• Businesses

• Overseas assets

Alimony

Another consideration in a high-net-worth divorce is alimony, also known as spousal support or spousal maintenance. While a court will order alimony based on certain factors, the financial earning ability of each spouse is one of the main factors. If a spouse has significant wealth and the other spouse needs financial support, the court will usually order the former spouse to pay spousal maintenance for some period of time.

Business Valuations

Where there are high-net-worth assets, there is often a business. In divorce, the value of a business is usually divided between spouses. This in itself is a complicated procedure because a business has to first be valued. There are several ways this can be done:

• Income approach: The business is valued according to its current, past, and projected revenue.

• Market approach: The business is valued against similar businesses that were recently sold on the market.

• Asset approach: The business is valued according to its assets, including physical assets like real estate or other assets like intellectual property.

Taxes

There are tax considerations that couples going through high-net-worth divorces will need to address. Some assets, in order to be divided, may need to be sold. When they are, they will be subject to taxes. For example, if a couple decides to sell their house and split the money, they will both need to pay taxes on those funds.

Contact a St. Charles, IL High-Net-Worth Divorce Lawyer

If you are about to go through a high-net-worth divorce, avoid hiring any old divorce lawyer. Find a Kane County, Illinois divorce attorney who has a keen understanding of the complex financial issues that will come up in your case. Tim Weiler is both an experienced divorce attorney and a certified financial litigator, which means he is extensively trained in the complex financial matters that come up in a high-net-worth divorce. Call Weiler & Associates, Inc. at 630-331-9110 to start simplifying your divorce today.