Call Us630-382-8050

2445 Dean Street, Suite G, St. Charles, IL 60175

Subscribe to this list via RSS Blog posts tagged in debt division

St. Charles divorce attorney debt division

Over the course of a marriage, a couple often accumulates significant property and assets together. However, the flip side is that they also often incur a significant amount of shared debt. In the event of a divorce, when the couple must transition from one financial entity to two, it is important to account for both assets and debts in the equitable division of property. This often makes for a complicated process, and it is important to understand how you may be affected if you and your spouse have to divide marital debt.

Common Sources of Marital Debt

The first thing you should know is that under Illinois law, marital debt can include not only loans that you and your spouse have taken out together but also many types of debt incurred by each of you individually during your marriage. Some of the most typical examples of marital debt include:

...

Kane County divorce attorneysA dissolution of marriage can be a difficult decision for a couple. Making drastic changes on your own can present more challenges than one would expect. Concerns related to your home, assets, businesses, and pensions are all worrisome topics that come to mind. Most concerning for many individuals facing a divorce, however, is the dispersion of debt between you and your ex. The state of Illinois recommends that a divorcing couple works together in order to divide their debts equally, however, decisions will be made by the judge if an agreement cannot be reached.      

Marital Debt vs. Non-Marital Debt

Illinois defines “marital debt” as any financial obligation acquired by either spouse after the marriage was finalized, and before the divorce is complete. An example of marital debt could be the amount owed on a credit card that was accrued while the marriage was intact. The court will take certain factors into account to ensure the accuracy of the determination, such as whether or not the credit card was opened prior to the marriage, or whether it is a joint or separate account. Hidden assets are commonly addressed in a divorce proceeding, as well. 

Non-marital debt, simply put, can be classified as financial obligations that are specifically assigned to the person that accumulated the debt. Non-marital debt typically happens before the marriage begins,but there are other ways for a debt to be considered non-marital. Examples of non-marital debt include:

...
Best Law Firm 2020 Emerging Lawyers Best 10 Avvo Leading lawyers Avvo
Back to Top