According to the Illinois Department of Human Services (IDHS), about 400,000 people in the Prairie State have a gambling addiction. The IDHS states that a further 700,000 are highly likely to develop a gambling addiction in the near future – implying that countless spouses are currently struggling with this legitimate psychological disorder. Although a gambling addiction can affect a family in many ways, one of its most serious consequences is divorce. Spouses who have experienced this first hand may wonder how a gambling addiction could affect asset division. What happens if one spouse gambled away the family fortune? How do family courts in Illinois approach this issue in an equitable manner? These are questions worth exploring alongside an experienced asset division lawyer in Chicago. Call (312) 319-4444 to continue this conversation with Johnson O’Keefe.
A Gambling Addiction Can Lead to Dissipation of Marital Property
Like most states, Illinois follows a system of “equitable distribution.” Under 750 ILCS 5/503, family courts consider a range of factors when approaching asset division. The goal of this system is to achieve an “equitable” division of property – and this might not necessarily be an “equal” split. Illinois courts recognize that simply splitting all marital property in half might not be fair, and they understand that spouses often destroy the value of family fortunes through misconduct or financial irresponsibility. If one spouse has “dissipated” their marital property, then a judge could decide that the other spouse should receive more of the remaining wealth. In other words, family courts in Illinois punish spouses for wasting marital property.
Under this equitable distribution doctrine, family courts may see gambling as a form of dissipation. For example, one spouse might develop a gambling addiction and secretly visit casinos or place sports bets throughout the marriage. The other spouse might assume that their family has considerable financial security – perhaps due to the high-paying job of their partner. However, this wealth may trickle away due to repeated losses, and the spouse may eventually discover that there is virtually nothing left. In some cases, this discovery leads to a divorce. In other situations, spouses only discover the extent of the gambling addiction after accessing financial records during the divorce process. This is a classic example of dissipation of marital property, and the “guilty” spouse in this scenario would likely receive less of the remaining wealth during asset division.
Am I Liable for My Ex’s Gambling Debts After Divorce?
Although the equitable distribution system may award more marital property to the spouse of a habitual gambler, this is meaningless if there is no marital property left. In fact, a gambling addiction often leads to excessive debt – and spouses may enter divorce with more liabilities than assets because of this issue. Spouses who find themselves in this situation may wonder whether they will be liable for the gambling debts of their exes.
In some cases, both spouses will become liable for these debts after the divorce. Asset division in Illinois applies not only to property, but also liabilities. Family courts will divide both in a roughly equal manner – and a spouse may need to help their ex pay off gambling debts for years after the marriage ends. That being said, the equitable distribution system in Illinois may allow some spouses to avoid debts related to marital dissipation. If a spouse can prove that this dissipation occurred without their knowledge, a family court may free them from liability for gambling debt. Spouses trying to escape these gambling debts by proving dissipation must adhere to strict timelines and regulations – and they may want to act quickly with help from Johnson O’Keefe.
Do I Get a Share of My Ex’s Gambling Winnings?
Although it is true that the “house always wins,” some may be lucky enough to walk away with considerable sums after gambling. Spouses who discover or suspect these winnings may wonder whether they could receive their fair share. The answer is usually yes, as family courts classify these winnings as marital property. Consider the stock market, where people also “bet” on companies. Since spouses must divide their stock portfolios during a typical divorce, it would not be fair to treat gambling winnings any differently.
On the other hand, spouses may argue that the equitable distribution system unfairly favors the non-gambling spouse during divorce. If a spouse loses a bet, they may become 100% liable for that debt due to dissipation laws in Illinois. If they win, however, they may only keep half of their winnings after a divorce. In other words, the non-gambling spouse often accepts zero risk while experiencing all of the benefits of a winning bet.
Uncovering Gambling Activities May Be Challenging
In order to receive a greater share of the marital property, a spouse must prove that the dissipation actually occurred. This could be challenging in the context of gambling for various reasons. First, the gambling industry often caters to those who appreciate confidentiality and discretion. Someone might walk into a casino with a few dollars and walk out with thousands in cash. These winnings can be difficult to document, and in some cases, they may be completely untraceable.
The digital world has transformed gambling, and various online gambling websites help users hide their gambling addictions from spouses and other parties. For example, someone might transfer a few thousand dollars to their account on an online gambling site. When their spouse views the credit card transaction, there may be no mention of the online gambling company. Instead, the transaction might mention a holding company with a vague, generic name like “Acme Financial Services.” Cryptocurrencies make this problem even more challenging, making it theoretically possible to gamble online using tokens with virtually no “paper trail” – and with complete anonymity. According to the Center for Public Justice, 20% of the entire adult male population have online sports betting debt – or have experienced it in the past.
Learn More About Asset Division With an Experienced Attorney From Johnson O’Keefe
While a gambling addiction can affect asset division in various ways, it is not the only factor worth considering during divorce. According to the equitable distribution system in Illinois, family judges may take many other factors into account – including the length of the marriage and the health of each spouse. These factors depend heavily on the unique characteristics of each marriage, and online information may only provide broad, generic guidance. To receive more specific legal advice, it may be worth speaking with an experienced divorce lawyer in Chicago. Consider calling Johnson O’Keefe at 312-319-4444 to discuss this complex subject in more detail.