Splitting Assets During Divorce

 Posted on February 19, 2026 in Property Division

Dividing what you and your spouse own together at the end of your marriage can be exhausting and stressful. Who gets the house? What happens to retirement accounts? Will you lose property you brought into the marriage? 

If you are going through a divorce in in 2026, understanding how Illinois courts split assets can help you prepare mentally and put some of your worries to rest. A Batavia divorce lawyer can help you protect your interests and work toward a fair division of assets.

What Is Marital Property in Illinois?

Illinois law divides property into two categories: "marital property" and "non-marital property." Marital property includes what you and your spouse acquired during the marriage. It does not matter whose name is on the title or account.  Marital property can include your home, vehicles, bank accounts, retirement funds, investments, furniture, and even debts.

Non-marital property belongs to only one spouse and is not divided in the divorce. Under 750 ILCS 5/503, non-marital property includes:

• Property you owned before the marriage
• Gifts or inheritances given specifically to you
• Property acquired after you are legally separated
• Property excluded by a valid prenuptial or postnuptial agreement

The line between marital and non-marital property can blur over time. If you owned a house before marriage, for example, but your spouse helped pay the mortgage or made improvements, part of the home's value might become marital property. 

How Do Illinois Courts Divide Marital Property?

Illinois courts use equitable distribution, which means the division must be fair based on your specific circumstances. Fair does not always mean a 50-50 split. The court considers many factors when deciding how to divide property. Judges look at the following:

• How long the marriage lasted
• Each spouse's financial situation and future earning ability
• The value of non-marital property each spouse keeps
• Economic circumstances of each spouse after divorce
• Contributions each spouse made to acquiring or maintaining property
• Tax consequences of the property division
• Prenuptial or postnuptial agreements

The court also considers whether one spouse wasted marital assets. If your spouse spent marital money on things like gambling or affairs, the judge may compensate you with other assets.

What Happens to the House and Other Major Assets in a Divorce?

If the house is considered a marital asset, there are a few different ways to handle it. One spouse can buy out the other's share and keep the home. This usually requires refinancing the mortgage to remove the other spouse's name. Another option is to sell the house and split the proceeds. Sometimes couples agree that one spouse will keep the house temporarily, especially if children are involved, and sell it later when the children are older.

Retirement accounts and pensions earned during the marriage are also marital property. These accounts can be divided using a Qualified Domestic Relations Order. This is a legal document that tells the retirement plan administrator how to split the funds without tax penalties.

Business division can be complicated. If one spouse owned the business before marriage, only the increase in value during the marriage may be marital property. This may be true even if the other spouse didn’t work in the business. If both spouses built the business together, the court might award it to one spouse and compensate the other with different assets, or order the business sold.

What Should I Do to Protect My Assets During Divorce?

Collect tax returns, bank statements, retirement account statements, credit card bills, mortgage documents, property deeds, and other financial documents. Make copies of everything and keep them in a safe place.

Open your own bank account if you do not already have one. This protects any income you earn after filing for divorce and gives you access to money for living expenses.

Do not hide assets or lie about what you own. Illinois courts take financial disclosure very seriously. If you try to hide property, the court can penalize you by giving more assets to your spouse. Be honest with your attorney about all assets and debts, even if you think they might not matter. 

Call a Kane County, IL Divorce Lawyer Today

Dividing assets in an Illinois divorce requires careful attention to detail and a thorough understanding of property law. You need someone on your side who will fight for your fair share.

A Batavia divorce attorney at Van Larson Law can help. Contact Van Larson Law at 630-879-9090 today for a free consultation.