Illinois Divorce and the Division of Exotic Assets

 Posted on September 30, 2025 in Divorce

The division of marital assets has the potential to be one of the more contentious parts of an Illinois divorce. Marital assets must be separated from non-marital assets, and then the law of equitable distribution takes over. Unlike the handful of states that operate under community property laws (which split marital assets 50/50 regardless of contributions or extenuating circumstances), equitable distribution (750 ILCS 5/503) states seek to divide marital assets and debts fairly.

When exotic or unusual assets are involved, the process can become even more complicated than normal. From rare art collections and luxury vehicles to sports memorabilia and cryptocurrency, these assets rarely fit neatly into "standard" property division. The question becomes how a judge will value and divide items that are rare, hard to trace, or whose value is subjective. If you have questions regarding how your unique marital assets will be divided, a knowledgeable St. Charles, IL divorce  lawyer can help.

What is Equitable Distribution? 

Equitable distribution charges divorce courts with dividing marital property and debts fairly, but not necessarily equally, between spouses. The goal is a just outcome that takes into consideration factors like each spouse’s financial situation, contributions to the marriage, future earning potential, and the length of the marriage.

What Are Some of the Most Common Exotic Assets Married Couples May Have?

The most common types of exotic assets that may need to be divided include:

• Offshore and international holdings, including property, bank accounts, business interests, and trusts held in foreign countries.
• Cryptocurrencies such as Bitcoin and Ethereum
• Private companies or family businesses without a readily accessible market valuation
• Rare items, including classic cars, antique weapons, unique memorabilia, and fine art.
• Luxury vehicles, vacation homes, yachts, and other expensive boats
• Intellectual properties, including book and music royalties or patents and trademarks, can be challenging to value.
• Non-fungible tokens can be intangible, anonymous, and volatile.

Why Do Exotic Assets Add Complexity to the Equitable Distribution of Marital Assets?

Exotic assets complicate asset division because there are valuation, identification, and division challenges, as well as complex legal and tax implications. It can be much more difficult to determine fair market value for exotic assets due to market volatility, foreign markets, lack of public records, and the constantly changing value of items like collectibles and cryptocurrencies.

Why Is It Easier to Conceal Exotic Assets?

Financial disclosure can be undermined in a divorce that involves exotic assets, because these assets may be easier to conceal. One spouse may not even be aware of the existence of assets held in offshore accounts, digital assets, or collectibles stored in a private location. These assets can be difficult to value, even when both spouses are aware of their existence.

The Tax Implications of Dividing Exotic Assets During Divorce

There can be significant tax implications that arise when dividing exotic assets. Assets that have appreciated in value (collectibles, investment properties, etc.) can generate substantial capital gains taxes if they are sold during the division of marital assets. Transferring or selling assets across international borders can trigger cross-border taxes in one or more jurisdictions.

When investment portfolios or closely held businesses are being sold and divided during a divorce, the after-tax value should be considered along with the market value. If assets are transferred between spouses, the receiving spouse must take on the original tax basis, affecting any future capital gains taxes when sold.

Contact a Kane County, IL Division of Marital Assets Lawyer

If you are dealing with exotic assets in your divorce, retain specialists (forensic accountants, specialized appraisers, international asset experts), conduct a thorough financial discovery, and account for tax implications. Beyond that, always choose an experienced St. Charles, IL divorce attorney from Mirabella, Kincaid, Frederick & Mirabella, LLC who has the skill and the knowledge to guide you through the process.  MKFM Law serves family law clients at their offices in Kane County, DuPage County, and DeKalb County. To schedule your initial attorney meeting, call 630-665-7300.