Anderson & Boback Logo

Post-Separation Purchases and the Effects on the Divorce

Categorized as Property Division

One of the first recommendations we make after a client retains us is to avoid any and all purchases of big-ticket items until after the divorce. Sometimes our clients diligently listen to us, often times they do not. Here are a couple of scenarios if you have purchased a property/car, or gifted large amounts of money to someone during the divorce:

Marital Property – One scenario would be that the property, or the funds used to purchase the property, would be labeled marital property and would then be subsequently divided 50/50 at the time of the divorce. If you purchased a house or a car, any mortgage or car notes would also be taken into consideration and only the equity would be divided at the divorce.

Dissipation – If the property you purchased is now in someone else’s name (a significant other, extended family member or children outside of the marriage), then the property would not be considered marital. However, the money used to purchase said property could be considered dissipation and will be balanced against you at a final distribution of assets. In other words, if you spent $5,000 on a car for your mother, the final distribution could be offset so that your ex could get $2,500 more from your pension or other asset.

Non-Marital Property- The best case scenario would be that the purchase is considered marital. For example, you used the money in a marital savings account to pay off debt that was in your name alone but incurred during the marriage. The debt would likely be considered marital, so any funds used to pay off that debt would also be considered marital.

To avoid any complications, it is advisable to hold off any big-purchases until after the divorce. However, if the purchase has already been made or needs to be made necessarily, talk to an attorney beforehand so that the best strategy that would be the least damaging to you can be applied to your case.

Was this information helpful?

You May Also Like

A cohabitation agreement is an agreement or contract entered into between two people living together in the same household who are in a romantic relationship but not married. With more millennial couples choosing to live together, whether planning to marry…

When going through a divorce it's not uncommon to think "I never want to get married again!" But later, you may fall in love again and be ready to venture into marriage again. If you are planning to remarry, you…

While doing an initial consultation with an individual looking to get divorced, I have found it is common to get questions about whether it is possible for a divorcing couple to work together with an attorney to do a collaborative…

No one likes to pay spousal maintenance (formally called "alimony" or referred to as spousal support). When you are employed and your ex refuses to work, there is a greater reluctance to want to pay maintenance. In Chicago divorces, there…

Finding the best child custody lawyer in Chicago may seem like a daunting and intimidating process if you have never been involved in a legal dispute. This is especially true when it comes to a custody case involving your children…

Parenting disputes, and accusations of being a bad or unfit parent, are extremely common in the world of divorce, juvenile, and family law. Many parents enter the courtroom with a laundry list of accusations of poor parenting against the other…

Anderson & Boback small logo

Download our Divorce Planning Guide today!

Get the information you need to prepare for divorce with our free resource Guide to Planning for Your Divorce.

What our clients are saying

Why Choose

Schedule a Discreet Consultation Today!

    Firm Overview

    Anderson & Boback is a highly-respected, experienced Chicago family law firm, skilled in negotiation and litigation. When divorce and other family law issues make your life chaotic and uncertain, you want your case resolved as quickly and fairly as possible. Call Now 312-715-0870