In an Illinois divorce, debts are divided equitably, considering factors such as when and why they were incurred and each spouse’s financial situation.
Understanding Debt Division in Illinois
Debt division is an essential part of the divorce process. Illinois courts follow the principle of equitable distribution, which means debts are divided fairly, though not necessarily equally. The division is based on the circumstances surrounding the debt and each party’s ability to repay it.
Legal Context for Debt Division in Illinois
Under the Illinois Marriage and Dissolution of Marriage Act (750 ILCS 5), the court classifies debts as either marital debt or non-marital debt:
Marital Debt:
- Includes debts incurred during the marriage for joint benefit, such as mortgages, car loans, or credit card debt for shared expenses.
- Typically divided between spouses.
Non-Marital Debt:
- Includes debts incurred before the marriage or for personal purposes, such as student loans or credit card debt for non-shared expenses.
- Typically remains the responsibility of the spouse who incurred the debt.
Factors Courts Consider:
- The purpose of the debt.
- When the debt was incurred.
- Each spouse’s income, assets, and financial situation.
- Any misconduct, such as excessive spending or hidden debts.
Example Scenario:
A couple’s joint credit card debt used for household expenses may be split between both spouses, while one spouse’s student loan debt remains their responsibility.
Steps to Divide Debts During Divorce
- Identify All Debts:
Create a comprehensive list of debts, including mortgages, loans, credit cards, and other liabilities. - Classify Debts:
Determine whether each debt is marital or non-marital based on its purpose and timing. - Negotiate Debt Division:
Work with your spouse to agree on how to divide debts equitably. If no agreement is reached, the court will decide. - Present Evidence:
Provide documentation, such as loan agreements and account statements, to support your claims about debt classification and division. - Follow the Court’s Decision:
Comply with the court’s orders regarding debt repayment.
How Attorneys Can Help
An experienced family law attorney can:
- Help you classify debts as marital or non-marital.
- Advocate for a fair division of debts during negotiations or in court.
- Address hidden debts or financial misconduct by your spouse.
- Ensure the division of debts aligns with your financial interests and Illinois law.
Need Help With Debt Division?
Call (630) 366-1760 to consult with a family law attorney. We’ll guide you through the process of dividing debts during your divorce and protect your financial interests.
Disclaimer: This page provides general information and is not intended as legal advice. For personalized assistance, consult a licensed attorney.
