Whether it is from medical bills, student loans, credit cards, or another source, most adults have debt. In fact, the average American is about $38,000 in debt. If your spouse has a high amount of debt, you may have questions about who is responsible for paying this debt after you get divorced. You may assume that any credit cards or loans that are in your spouse’s name will be his or her sole responsibility after you end the marriage. Unfortunately, this is not always the case. There are several different factors that influence how debt is divided in an Illinois divorce.
Debt is Divided Similarly to Property
Illinois is an equitable distribution state. Any property that was obtained during the marriage is considered part of the marital estate and is subject to division during divorce. Property that a spouse obtained before getting married is considered separate property and is not subject to division. Debt is handled in a similar way. Any debts that were acquired by either spouse during the marriage are generally considered to be marital debts shared by both spouses. Debts acquired before the spouses got married are typically considered separate and are assigned to the spouse who acquired the debt.
However, there are exceptions to these generalities. For example, if a spouse’s student loans led to a higher salary and therefore increased standard of living for both spouses, it is possible that both spouses would be responsible for repaying the loans. On the other hand, if a spouse’s gambling addiction accumulated significant debt, the other spouse may not be responsible for paying it off since the debt did not benefit both spouses.
Paying Off Marital Debt May Be The Best Option
If both spouses are responsible for certain debt and one spouse fails to make payments, creditors may pursue the other spouse. It is very possible that your credit score could be damaged if your spouse does not pay his or her share of the debt. This is why many divorce lawyers suggest paying off shared debt before finalizing the divorce whenever possible. Some spouses choose to use the proceeds from selling their home or other assets to pay the marital debt.
Contact a DuPage County Divorce Lawyer
Financial concerns during divorce are often the greatest source of confusion and contention. At the Stogsdill Law Firm, we provide personalized legal guidance that is based on our client’s unique circumstances and needs. For dependable legal support regarding the division of assets and debts, child custody, child support, spousal maintenance, and more, contact one of our skilled Wheaton divorce attorneys today. Call 630-462-9500 for a confidential consultation.
Sources:
https://www.cnbc.com/2018/08/20/how-much-debt-americans-have-at-every-age.html
https://creditcards.usnews.com/articles/how-credit-card-debt-is-handled-in-divorce