You might think that the Illinois divorce process is over when you receive your divorce decree from the court, a document formally known as a Judgment of Dissolution of Marriage. After all, that document includes an itemized list of all your marital debts and assets, with each item either assigned wholly to one spouse or divided between spouses into percentage shares.
However, your work is not yet over. The divorce decree does not legally transfer the title of major assets like cars and real estate from one person to another, nor does it legally relieve a spouse from liability for marital debts. You must take separate legal steps to ensure that your name is added to or removed from each asset title and debt obligation. This is important to protect your credit rating in the event that your ex fails to stay on top of loan or credit card payments.
Deadlines for Asset Transfers Incident to Divorce
Gifts and asset transfers between married spouses are generally not taxable transactions, even if the asset has risen in value since the time of purchase. However, the same transaction between divorced spouses could be treated as a sale and subject to income tax if there is a gain on the sale....