Question By: Divorce can be a difficult and complicated process, especially when it comes to dividing assets and debts. In the state of Illinois, marital property is divided according to the principle of equitable distribution, which means that property and debt are divided in a fair and just manner. In this blog, we will discuss how debt is divided in an Illinois divorce.
What is Marital Debt?
Marital debt refers to any debt that was incurred by either spouse during the marriage, regardless of whose name is on the account or loan. This can include credit card debt, car loans, mortgages, personal loans, and any other debts that were acquired during the marriage.
Illinois is a common-law state, which means that property and debts acquired during the marriage are presumed to be marital property unless they were acquired through inheritance, gift, or were specifically designated as non-marital in a prenuptial or postnuptial agreement.
How is Marital Debt Divided?
In Illinois, marital debt is divided according to the principle of equitable distribution. This means that debt is divided in a fair and just manner, but not necessarily equally. The court will take several factors into consideration when dividing debt, including:
- The income and property of each spouse
- The length of the marriage
- The contributions of each spouse to the marriage, including homemaking and child-rearing
- The needs of each spouse
- The age and health of each spouse
- The ability of each spouse to earn income and support themselves
The court may also consider any other factors that it deems relevant to the case. Once the court has considered all of these factors, it will divide the marital debt in a way that it deems fair and just.
It is important to note that the court can only divide marital debt. Non-marital debt, such as debts incurred before the marriage or debts acquired through inheritance or gift, will not be subject to division. However, if marital funds were used to pay off non-marital debt, the court may consider this when dividing marital property and debt.
What Happens If Your Spouse Hid Debt?
In a union where one spouse handles the finances, it is common for there to be debt the other was unaware of. While you can be held liable for the marital debt, your debt division lawyers could argue that hidden debt should be assigned to your ex. Speak to your lawyer if you discover debts from the marriage you did not know about. It may be possible to show that your ex took out the debt without telling you. Also, your ex-spouse may have run up credit card debt on unnecessary expenses that did not benefit the marriage.
The judge may see that you did not know about how your spouse hid debt. In this case, she could provide you with more marital assets or alimony payments to account for your additional debt payments. Remember that proving that you were not involved in running up excessive credit card debt in the marriage is challenging. This is where having a seasoned Naperville debt division attorney can pay large dividends.
Conclusion
Divorce can be a difficult and emotional process, especially when it comes to dividing assets and debts. In Illinois, marital debt is divided according to the principle of equitable distribution, which means that it is divided in a fair and just manner. If you are going through a divorce in Illinois, it is important to consult with an experienced family law attorney who can help you navigate the complexities of property and debt division.
There are many legal and financial considerations during a divorce. One of the most common problems is dividing marital property and debts. You need a Naperville debt division lawyer fighting for your rights when there is so much on the line. You could have a smaller debt bill after your divorce with the proper legal assistance. The attorneys at Keller Legal Services can help you.
For more details, visit https://kellerlegalservices.com/blog/2023/01/30/how-is-debt-divided-in-illinois-divorce/
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