Keeping good documentation for your records is more important than you might think, especially in long-term marriages. A case in point is the situation of Sarah and Michael, who have been married for 15 years. Before Michael entered the marriage, he had $150,000 in a retirement account and $90,000 in an investment account. Throughout their 15-year marriage, the retirement account was increased by employer distribution and the investment account holdings were reinvested. Now Sarah and Michael are getting a divorce and Michael wishes to claim those two accounts, or a portion thereof, as his non-marital property.
Pursuant to 750 ILCS 5/503(a), Michael may claim the accounts, or a portion of them, as non-marital because they were acquired before the marriage. Additionally, any appreciation or reinvested income from the accounts that resulted solely from market forces, without efforts or contributions during the marriage, may also be considered non-marital.
Here, in order to claim his accounts, or a portion thereof, as non-marital, it is Michael’s burden to provide the proof supporting his claim. The issue is that generally spouses who have been married for over a decade often neglect proper record-keeping (including statements from prior to marriage), unintentionally putting themselves at risk. Financial institutions typically don’t keep records past 10 years, which can lead to disputes over whether certain assets are marital or non-marital. When in doubt, keep good records.
Morgan L. Stogsdill, Equity Partner
For more on Ms. Stogsdill, please visit:
https://www.beermannlaw.com/team/morgan-l-stogsdill.
