How Debt is Handled in an Illinois Divorce

 Posted on December 21, 2023 in Divorce

In Illinois, debt is considered when dividing marital assets during divorce proceedings. The amount of debt one spouse receives over the other is determined by multiple factors, which include:

• The specific needs of each spouse
• How long the marriage lasted
• What marital assets each spouse is already receiving

Illinois being an equitable distribution state means that the debt will be split relatively rather than 50/50. It is a good idea to know exactly what debt is yours in marriage before you reach this part of the divorce process. When one spouse is not being forthcoming about how much debt they have accrued during the marriage, contact a divorce attorney.

Marital Assets

All property acquired over the course of your marriage is considered marital property. This includes debts as much as it does assets. The only property that is legally yours and considered a non-marital asset would be any non-commingled property you owned before marriage, anything declared in a premarital agreement, gifts or inheritance, and premarital debt.

What About Non-marital Debt That The Other Partner Took On?

In the case both spouses choose to pay toward the non-marital debt of one spouse, then that debt becomes shared debt and is considered during the asset divide in divorce. So, credit cards opened before marriage that both partners use during the marriage can be considered shared debt. Joint accounts and loans can also be deemed shared debt in this regard.

How Can I Keep My Debt Separate From My Partner’s Debt?

The simple answer would be to never commingle your debt with theirs. Do not pay for their debt; never let them pay for yours. Once one spouse begins to pay on another’s debts, the debt can be considered shared property and is subject to division by the court. Another way to separate your and your spouse’s debt would be to refrain from opening joint accounts that can accrue debt. When opened jointly, credit cards, loans, mortgages, and similar accounts are all subject to shared debt. Lastly and most importantly, you should pay off your debts so that there is nothing to divide except property in your divorce. This is the most obvious and straightforward way to ensure your debt does not fold into your partner’s debts.

Contact a Kendall County, IL Divorce Attorney

Keeping debt to a minimum and avoiding joint accounts are great ways to ensure minimal impact during the division of marital assets. A Yorkville, IL divorce lawyer from the The Law Office of Matthew M. Williams, P.C. can help you figure out where you are with your debts and how they might affect a court’s final decision. We can offer counsel and advice on how best to minimize your debt and discover any debts your spouse may have hidden from you through discovery. Contact our office at 630-409-8184 for an appointment to discuss your unique situation.