How Exactly Does "Equitable Distribution" Work in an Illinois Divorce?

 Posted on February 09, 2026 in Asset Division

The prospect of dividing their shared property is one of the most common reasons spouses delay getting divorced for years, even decades. The prospect of divvying up your belongings – and possibly fighting over them for months or years – can feel like too much to bear, even if your marriage is clearly at its end. 

Under Illinois law, decisions about what happens with a couple’s property are made following an "equitable distribution" model. This means the court tries to divide marital assets and debts in a way that it considers fair, but that does not necessarily mean an equal split.

But what exactly does this mean for you? Will you have to fight over every little thing in court, or can you settle beforehand if you have a good attorney? If you need answers to these questions in 2026, our Hillside, IL family law attorney can help you understand how the rules of property division in divorce will apply to your case.

What Counts as "Marital Property" in Illinois?

750 ILCS 5/503 addresses how property is divided in divorce. Before any decisions are made about who will get what, you must first understand whether each of our assets is marital or separate property. 

"Marital Property" 

Marital property includes all assets the couple acquired during the marriage, whether acquired solely by husband, acquired solely by wife, or acquired by husband and wife together. This typically includes a house, car, bank accounts and/or other items that were bought while the couple was married. 

Many people are surprised to learn what items count as marital property, especially in high-net-worth divorces, or marriages that have lasted for many years. For example, expensive season tickets to sporting events or opera houses purchased during the marriage are marital property, even if only one spouse attended the events. The same applies to country club memberships, frequent flyer miles accumulated during the marriage, and even rewards points on credit cards.

Animals and pets are also legally considered property in Illinois, which means expensive animals like horses and farm animals are marital property, and the family dog and/ or cat is marital property as well. Judges can consider a pet’s well-being when it makes sense to do so, but at the end of the day, pets are property and will typically go to one spouse or the other. 

Other unusual types of marital property include: 

• Cryptocurrency purchased during the marriage;
• Lottery winnings;
• Valuable social media accounts with monetization potential;
• Certain parts of personal injury settlements;
• Professional practices like dental offices or law firms that grew during the marriage; and,
• Stock options that have not yet vested.

Separate Property 

Separate property covers assets owned before marriage, as well as inheritances or gifts given directly to one spouse. These assets are typically safe from division, but that won’t necessarily stop your spouse from trying. 

The main question about separate property becomes whether it was truly kept apart from marital property. For example, if you owned a classic car before marriage and kept it titled only in your name without using marital funds for maintenance or improvements, it remains your separate property, even if your spouse loved to drive it. An inheritance from a parent stays separate as long as you never deposited it into a joint account, or used it to buy something with your spouse.

Gifts given specifically to you are separate property as well. This might include jewelry from your parents, or artwork gifted to you from a friend. 

Mixed Property 

Sometimes, property is a mix of both marital and separate. For example, a retirement account started before the marriage is often added to during the marriage; in this case, it could be part separate and part marital. 

For hybrid property like this, the spouse keeps the portion they owned before the marriage, while the part gained during the marriage is divided fairly, but this is easier said than done. You may need to hire financial experts, or accountants, or obtain detailed records to trace which part of the asset is separate and which part is marital.

Can We Agree to Divide Our Marital Property However We Want in a Divorce? 

One of the most important things to understand about your divorce is that the judge overseeing your case will strongly encourage the two of you to create a divorce settlement agreement without resorting to litigation. In fact, very few divorce cases actually end up being fully litigated.

If a divorcing couple can’t resolve their disagreements about property, a judge can (and often will) require the couple to attend mediation together. If mediation still doesn’t result in an agreement, the judge will allow discovery to proceed. However, once discovery is complete, judges will still often hold a pretrial hearing in which they will review the facts with both attorneys and make a recommendation for a settlement, based on what the judge sees as the most likely outcome of the case. 

Only if this approach is unsuccessful do divorcing spouses proceed to litigation (a trial). That is a worst-case scenario, and the fact is that many divorcing couples are able to reach their own agreements about how to divide their property. When couples negotiate and can settle without a trial, courts usually will approve the agreement, as long as it is deemed to be fair. Only when spouses cannot agree does the court step in and issue a settlement order for them. 

How Do Illinois Courts Decide What Is "Fair" when Dividing Property in a Divorce?

Under Illinois law, divorce judges have been given wide discretion when deciding what an "equitable distribution" looks like in any given case. There are several factors that are considered, including:

• Each spouse’s financial and non-financial contributions to the family;
• The length of the marriage;
• How property was acquired, and how it has been used;
• Each spouse’s debts; and,
• How the division of property could impact taxes.

How Does the Court Handle Debts in Divorce?

Equitable distribution applies not only to property but also to debts. Mortgages, credit card balances and other loans are generally considered marital debts if they were taken on for the benefit of the household. The court will look at who benefited from the debt and decide how and by whom repayment should be made.

It’s important to note that while a court may assign the responsibility to pay off a debt to just one spouse, as long as both spouses’ names are on the debt, creditors can still try to recover the balance from both spouses. Dividing debt in a sensible way means accounting for this fact, and reducing your risk of exposure to future collection efforts. 

Contact a Hillside, IL Divorce Lawyer

Property division can be one of the most complicated parts of a divorce. At the Law Office of Vincent C. Machroli, P.C., we understand how high the stakes are when people need to divorce, but also need to protect their financial future. If this sounds like you, contact an Oak Park, IL complex property division attorney with over 38 years of experience at the Law Office of Vincent C. Machroli, P.C. today by calling 708-449-7404.