How Will Our Debts Be Divided During Divorce?

 Posted on February 06, 2025 in Asset Division

Divorce can feel like untangling a knot of shared responsibilities, emotions, and financial obligations. While dividing property often takes the primary focus, deciding who will take on marital debts can be just as important, and just as stressful. Credit cards, car loans, and even student loans all need to be addressed. If you are facing divorce, understanding how Illinois handles debt division can give you clarity and help you plan for the future. Partnering with an Illinois divorce lawyer can protect your financial interests during every step of the process.

What Is Considered Marital Debt?

In Illinois, marital debt includes any debt incurred by either spouse during the marriage. This can include, but is not limited to, credit card balances, mortgages, car loans, student loans, and medical bills.

It does not matter whose name is on the debt. For example, if one spouse takes out a credit card in their name during the marriage, the balance is usually considered to be marital debt. However, debts from before the marriage or after the divorce are generally considered non-marital and will remain the responsibility of the spouse who incurred them.

How Does Illinois Divide Marital Debt?

Illinois follows the principle of equitable distribution when dividing both assets and debts in a divorce. This does not mean debts are automatically split evenly. Instead, the court will consider what is fair and equitable based on various factors, including:

• Each spouse's income and financial resources

• The length of the marriage

• Each spouse’s contribution to the debt

• Each spouse’s capability to pay the debt after the divorce

• Any prenuptial or postnuptial agreements that address debt division

Judges have discretion when dividing debts, and each case is reviewed based on its unique circumstances.

What Happens to Joint Debts Like Credit Cards or Loans?

The court may assign responsibility for joint debts to one spouse or divide it between both spouses. However, the division of responsibility in the divorce decree does not change your legal obligation to the lender. If your ex-spouse is assigned a joint credit card debt but fails to pay, the company may still hold you responsible for the balance.

To avoid potential problems, working with your attorney to negotiate a plan that eliminates joint debts before the divorce is finalized may be beneficial. This plan might involve paying off the balances or transferring the debt into one spouse’s name.

Are Student Loans Divided During Divorce?

Student loans are a unique type of debt that may be handled in different ways during divorce. If the loans were taken out prior to the marriage, they are typically treated as non-marital debt. If the loans were taken out during the marriage, the court will evaluate factors like who benefited from the education and whether the family finances were used to pay for tuition.

What Can You Do to Protect Yourself During Debt Division?

During the debt division process of your divorce, there are several steps you can take to safeguard your financial future, such as:

• Gathering financial records related to debts

• Closing joint accounts to prevent your spouse from accruing more debt during the divorce

• Negotiating a debt settlement plan that reduces your financial risks

• Refinancing joint debts into separate accounts, which can help ensure each spouse is responsible for their portion of the debt

Contact a DuPage County, IL Divorce Attorney for Guidance

Dividing marital debt during divorce is a complicated process, and the decisions you make can have long-term financial effects. To protect your interests, contact a Wheaton, IL divorce lawyer at Goostree Law Group. Call 630-364-4046 today to schedule a free consultation.