Can Credit Card Debt Affect Your Illinois Divorce?

 Posted on October 09, 2024 in Division of Property

Significant credit card debt can be a factor in the decision to divorce and can also cause problems during the divorce. A concerning trend of "financial infidelity" has been shown to influence the breakdown of marriages. A full 70 percent of respondents to a recent poll cited credit card debt as a reason for their divorce. Many of these respondents said they or their spouses had concealed debt and that this played a major role in the divorce. Perhaps equally alarming, almost 40 percent of those who ended their marriage due to marital debt saw their credit scores nosedive by more than 50 points following the divorce.

Since many divorcees found themselves solely responsible for debts that had previously been shared, financial challenges only escalated after the divorce. Illinois is an equitable division state in terms of the division of assets. This means marital assets and debts are divided fairly, although not necessarily equally. An experienced Rolling Meadows, IL asset and debt division lawyer from Law Offices of Donald J. Cosley can help ensure the division of your assets and debts is equitable.

The Difficulties Associated with Untangling Marital Debt

Married couples may have a mortgage together, car loans, joint credit card accounts, and student loans for one or both. If they own a business, they may also have business loans. Aside from this, a spouse may have "secret" credit cards on which they have run up significant debt. This can make separating marital debts complex.

About two-thirds of all married couples have shared debt, while about a third of all spouses keep their debts separate. Unfortunately, many couples do not believe the marital debts were split fairly during their divorce. Among those who remarried, a much higher percentage (71 percent) opted to keep their debts separate from those of their spouse. Almost a fifth of all divorcees will be forced to get a second job in order to continue paying their share of the marital debt.

How to Manage Marital Debt During a Divorce

Divorce, in and of itself, does not have to come at the expense of your own financial freedom. There are ways to manage shared marital debt during your divorce that can help you get off to a good start for your new future. Some of these tips include:

• Retain a highly skilled divorce attorney.

• Take stock of any debts you have, either on your own or marital debts you are responsible for.

• Review your credit report and make notes regarding how much you and your spouse owe as a couple and how much you owe on your own.

• Reach out to your creditors to let them know of your new circumstances. On accounts that are under your name, have your ex-spouse removed as an authorized user.

• During the divorce, while waiting to see what debts you will be responsible for, do not stop paying your obligations.

• Keep a detailed record of all your contributions in case your ex is required to reimburse you for payments you made toward shared debts.

Contact an Arlington Heights, IL Asset Division Lawyer

Attorney Don Cosley personally handles all aspects of his cases. When you call Law Offices of Donald J. Cosley with questions, you will speak directly to Don and will never be passed off to a paralegal. Retaining a Rolling Meadows, IL asset division attorney gives you a much better chance of receiving your fair share of the marital assets.  Call 847-253-3100 to schedule a free consultation to speak to Attorney Cosley regarding your Illinois divorce and division of assets.