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Illinois Law - Can Separate Property Become Marital Property Without a Gift? When marital and non-marital property are commingled in such a way that the identity of the non-marital property is lost, then the non-marital property becomes marital property. When marital and non-marital property are both used to finance a marital acquisition, the thing purchased is marital property. The main situation where this occurs is when the couple buys a house. It does not matter where the money for the down-payment comes from. If the house is taken in joint names, then the house is marital property. However, the contributor of the separate property is entitled to reimbursement, as long as the contribution must be proved by clear evidence. However, if the contribution was at the time a gift to the other spouse, there will be no reimbursement. The main effect of this is set-up that, if the house increases in value, the separate property contribution does not increase accordingly. Section 5/503(c).
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