3 Things to Know About Marital Debt During an Illinois Divorce

 Posted on December 13, 2022 in Divorce

Debt is often a significant issue in a divorce. Most people have some sort of debt, so it is vital to understand how to navigate the process of splitting marital debt during your divorce. If you or your spouse have student loans, credit card debt, personal loans, a mortgage, or any other type of debt, it is important that you know your rights and responsibilities during divorce. Here are four essential things to know.

1. Marital Debt is Divided Equitably 

Like marital assets, debts accumulated during the marriage are considered marital debts. Debts acquired by a spouse prior to getting married are usually non-marital debts. If the court divides marital debt, it will be divided equitably between both parties. This applies to long-term debts, such as mortgages or car loans, and short-term debts like credit cards or medical bills. Each party is responsible for paying its share of the marital debt.

2. Debt Assigned to One Spouse May Not be Discharged

It is important to note that just because debt is assigned to one spouse does not mean it will be discharged. In other words, creditors can still collect from both parties for the debt until it is paid in full, despite who it is assigned to. You could potentially be on the hook for your spouse’s debt long after the divorce.

3. Legal Separation Can Protect You From Your Spouse’s Debt

If you are worried about your spouse accumulating more debt during your separation or divorce, you may want to get a legal separation. Simply living apart is not the same thing as being legally separated. When parties are legally separated, any assets or debts they accumulate during the separation period are considered non-marital debts. 
Legal separation may be a useful step if you are concerned about your spouse’s spending habits influencing your post-divorce future. Getting legally separated does not end your marriage but it does provide important legal protections. 

Contact an Arlington Heights Divorce Attorney

If you are considering filing for divorce and need help with marital debt in Illinois, it is essential to understand how marital debt will be divided during the process. Our Rolling Meadows marital debt lawyer can help ensure your rights are protected and your marital debt is split equitably. Call 847-253-3100 or contact us online to schedule a free initial consultation.

Sources:

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

https://www.isba.org/public/guide/gettingadivorce