Chicago Asset Tracing Lawyer
Divorces can be complicated, especially when it comes to property division. When is property separate and when is it marital? It’s not always so cut and dry.
Married couples acquired property during the mariage, but each party also brings property into the marriage. It’s common for separate property to become commingled, or mixed, with marital property. So in the event of a divorce, it’s up to the property owner to trace the origins of the property if they want to prove that it’s nonmarital in nature and therefore not subject to split.
This is called asset tracing and there are many ways to go about it. Seek legal help from a Chicago asset tracing lawyer from Birnbaum Gelfman Sharma & Arnoux, LLC. We’ll assess your situation and help you find the right method so you can protect what’s yours.
This method involves tracing separate property from its inception through its present state. For example, a person who is claiming an inheritance as separate property may document the receipt of the inherited money into a personal bank account and show the activity that has occurred in the account since then. If the funds were used to make a purchase, such as a home, then the owner would have to provide documentation showing the funds transferring out of the account as well as any documentation for the purchase of the home to prove the separate property.
Community Out First
Also known as the exhaustion method, it operates under the assumption that marital/community funds are used to pay for any marital/community expenses before the separate funds kick in. The marital/community funds are assumed to be withdrawn first, while the separate funds sink to the bottom. For example, an inheritance check of $100,000 is deposited into a joint accountant and there is another $50,000 in marital/community funds. Over time, $75,000 is withdrawn from the account for living expenses. Under this method, the remaining $75,000 in the account is considered separate property.
Minimum Sum Balance
This method is a little trickier to prove and trace. Under this method, the owner of the assets needs to add up the total of the deposits considered to be separate property. If the balance of the account never drops below the sum of those deposits, those contributions are considered to be separate property. Therefore, the owner needs to do their due diligence and prove that the account balance never fell below the amount claimed as separate property.
Contact Birnbaum Gelfman Sharma & Arnoux, LLC Today
The best way to avoid property issues is to keep your own property separate, but that’s not always so easy to do. In the event of a divorce, though, you’ll need to prove that assets are actually yours.
Protect what’s yours. The team at Birnbaum Gelfman Sharma & Arnoux, LLC will help you keep your property separate. Schedule a consultation with a Chicago asset tracing lawyer by filling out the online form or calling (312) 863-2800.