Credit Card Debt During Divorce in Kane County

 Posted on December 15,2022 in Division of Property

Credit card debt is a common burden that afflicts many Americans. Out of frivolity or necessity, credit card debt can be easy to accumulate. In fact, as of 2022, the credit card debt of American citizens has risen to $925 billion, which is a 15 percent increase from 2021. When a divorcing spouse discovers, unbeknownst to them, that their spouse has accrued debt from one credit card or multiple credit cards, the divorce can become acrimonious. The equitable division of assets can also become even more convoluted than a divorce involving financial transparency.

Under Illinois law, most credit card debt is considered marital property as the non-offending spouse will be obligated to pay. A divorce attorney adept at identifying marital assets, which include debts, can evaluate your case and help strategize for a reasonable settlement.

Instances Where Credit Card Debt is Non-Marital

• Legal separation – Any credit card debt accrued after a legal separation is considered non-marital.

• Divorce – Marital and non-marital assets and debts are determined and allocated during divorce proceedings. Any debt amassed after a divorce is non-marital and only the spouse who acquired the debt is responsible for it.

• Debt acquired before marriage - Debt that an individual had before the marriage is usually non-marital. For example, if a spouse enters the marriage with student loans, it is usually his or her sole responsibility to repay the loans. However, there can be exceptions to this general rule.

Common Reasons Why a Spouse Secretly Accumulates Credit Card Debt

There are many reasons that a spouse may accumulate credit card debt without the other spouse’s knowledge:

• A spouse could amass debt from a secret credit card as a means to pay for their children’s basic needs.

• A spouse may accumulate credit card debt to punish or retaliate against the other spouse. This could potentially lead to a dissipation of assets claim.

• Before an impending divorce, an offending spouse may pay down debt to reduce marital funds.

• A spouse has a secret addiction to shopping, gambling, or substance abuse.

• A spouse spends more on the credit card than they earn.

Contact a Family Law Lawyer in Kane County

At The Law Office of Matthew M. Williams, P.C., trustworthy divorce attorney Matthew M. Williams diligently advocates for his clients and strives for fair and peaceful solutions. Matthew M. Williams, certified in both collaborative and cooperative law, understands the financial complexities associated with divorce and is adept at deciphering marital property and debt. Safeguarding his clients' financial interests is of utmost importance to Matthew M. Williams and the firm's team of professionals. If you are divorcing a spouse who accumulated debt from an undisclosed credit card, contact a Batavia divorce attorney at 630-409-8184.

Sources:

https://www.lendingtree.com/credit-cards/credit-card-debt-statistics/

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

https://docs.google.com/document/d/1DlSq_EiUNMv_yD0wXUMtBGETtl9KsFrgg2gu9q39sRU/edit