It can come as an unhappy surprise when you discover during a divorce that you have to pay for your ex’s debt – or a relief if the debt was in your name. By law, married couples share assets, debt included, so those accumulated in marriage technically belong to both of you. However, in Illinois there is leeway in terms of how the debt gets divided when a couple separates. It will be factored into a broader asset division formula that varies from case to case.
If you’re worried about going broke, a divorce attorney can be very useful in helping you negotiate an agreement that considers all of your financial needs and is fair to both parties.
What Does Illinois Law Say About Marital Debt?
Illinois law requires an equitable division of marital assets in divorces, and that generally applies to any debt that both or one party acquired during the marriage. Both spouses may try to divvy up these marital debt obligations on their own, particularly if the debt is directly related to expenses that contributed to the marriage, such as outstanding mortgages, money owed on a vehicle, credit card debt and a spouse’s medical school debt. However, disputes may arise if there was debt that one party was unaware of, and you can argue your case in court to achieve a more just agreement in your settlement.
Will You Both Pay the Same Amount?
Because Illinois is an equitable distribution state, you and your ex might not be required to pay the same amount of debt overall. The division of assets must be considered fair to both spouses, providing flexibility in how things get split up. As such, the court has discretion over how it will quantify and divide assets and debt alike between the two parties.
Judges Have Some Discretion Over How Much People Will Owe on Loans
In many marriages, the home is the biggest source of debt. As long as both people lived there, that expense might be split between the parties. However, our society makes it easy to accrue certain types of debt. Most Americans carry multiple credit cards, amounting to roughly $8,000 in credit card debt per credit card holder in Illinois, according to Lending Tree. While your spouse can’t take out a credit card in your name, they may be using your joint bank account to fund one.
That doesn’t mean they’re each on the hook for half the mortgage and half of credit card debt. Courts often weigh those expenses as they determine how much spousal support is owed, who keeps the family car, and so on. In the end, someone who gave up a career to raise the kids and has significantly less income could be held responsible for less of the debt expense. From a legal standpoint, the goal is to reach an equally fair result for both parties.
Are Both Spouses Responsible for Credit Card Debt While Separated?
If you get separated, then discover other credit cards sapping your shared account, your lawyer will help you determine how much you are legally obligated to cover. If you were aware of the cards while you were together, it would most likely be considered a marital debt in a court of law, and you may have to split the remaining debt as part of your divorce agreement.
However, debt incurred during a separation often leaves more room for negotiation, which is why getting good legal representation can be an effective strategy at this stage in your divorce. You may want help drafting a marital settlement agreement, filing your appearances, and getting a court date to resolve the issue.
Talk to Chicago Area Lawyer David A. King, P.C. About Debt During Your Divorce
If you and your spouse can come to an agreement over the division of your marital assets, debts included, a judge’s involvement on the issue may be avoided. Still, you will benefit from legal support as you comb through all of your financial documentation, especially after a lengthy marriage where there is a substantial amount of shared property.
Contact the Law Office of David A. King, P.C. to address any debt concerns in your divorce and get help resolving them as efficiently and fairly as possible.
