How is Debt Dealt With During an Illinois Divorce?

 Posted on January 10, 2020 in Asset Division

Dealing with the marital estate is arguably one of the most difficult aspects of a divorce. Contention over who gets to keep the family home and who gets the money in savings accounts can be the cause of many arguments during the asset division process. One thing to note is that property and assets are not the only things that must be divided during this division process — you must also allocate your debts between the two of you. Allocating debt can prove to be a stressful process, especially since debts created by one spouse may need to be divided between the two of you.

Is it Marital or Non-Marital Debt?

The first thing you must do is determine which of your debts are actually part of the marital estate and which of your debts are personal debts. According to the Illinois Marriage and Dissolution of Marriage Act (IMDMA), any property or debts acquired between the day you were married and the day you filed for divorce are considered to be part of the marital estate. If the debt was acquired before you were married or after you filed for divorce, it will probably be considered individual debt. Marital debt can include:

• Credit card debt

• Auto loans

• Home mortgages

• Medical debt

• Student debt

Who Has Responsibility For the Debt?

When it comes to dividing marital assets and debts, Illinois is an equitable distribution state. This means that each spouse will be allocated a “fair” amount of the marital estate, including both property and debt. If you leave it to a judge to determine what is fair, the judge will use a variety of factors to make the determination. These factors may include each spouse's financial resources and ongoing needs, as well as how decisions about child custody will affect each party's financial situation.

Talk With a Wheaton, IL Debt Division Attorney Today About Your Options

Allocating your marital debt between you and your spouse presents a significant set of obstacles that you must overcome during the divorce process. If you are having a difficult time determining how your assets and debts will be allocated, you should talk with a knowledgeable DuPage County property division lawyer today. At the Goosetree Law Group, we have more than 80 years of combined experience helping couples come up with unique solutions to divide their assets and debts. To schedule a free consultation, call our office today at 630-364-4046. 

Sources:

http://www.ilga.gov/legislation/ilcs/documents/075000050k503.htm