In this Learn About Law video, Kevin OFlaherty explains the division of debt in Illinois divorces, including “types of debt in Illinois divorce”, “what impacts how debt is divided in Illinois divorce?” and “the process of dividing debt in Illinois divorce”. Most couples think about the division of assets and property, but may forget about the division of debt in a divorce, which is an important financial aspect of divorce. #Divorce #IllinoisDivorce Have any questions that weren't answered here? Let us know in the comment section! Subscribe: https://www.youtube.com/channel/UCY4Q... Read the article: https://www.oflaherty-law.com/learn-about-law/how-is-debt-divided-in-illinois-divorce More Learn About Law videos, podcasts, and articles: http://www.learn-about-law.com Schedule a Free Consultation or Learn More about O'Flaherty Law: http://www.oflaherty-law.com Please call us today at (630)324-6666 to schedule a free consultation. Like us on Facebook for weekly videos: https://www.facebook.com/oflahertylaw/ Do you need marketing, editing or audio/video production work for your business or website? BLTV is happy to help! Let us know what we can do for you by emailing us at marketing@oflaherty-law.com. O'Flaherty Law has convenient offices located in Downers Grove, Elmhurst, Naperville, Tinley Park, St. Charles, and Lake in the Hills, Illinois, serving DuPage County, Will County, Cook County, Lake County and McHenry County. Its attorneys focus on providing quality legal work, above-and-beyond customer service, and affordable rates in the following practice areas: divorce & family law; estate Planning, wills & trusts; probate & estate administration; litigation, civil law & dispute resolution; business representation & corporate law; guardianship, elder law & special needs law; residential & commercial real estate law; immigration; bankruptcy; and DUI law and traffic & criminal defense.
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In this article we will explain the division of debt in Illinois divorces, including “types of debt in Illinois divorce”, “what impacts how debt is divided in Illinois divorce?” and “the process of dividing debt in Illinois divorce”. Most couples think about the division of assets and property, but may forget about the division of debt in a divorce, which is an important financial aspect of divorce.

In this article we will explain the division of debt in Illinois divorces, including “types of debt in Illinois divorce”, “what impacts how debt is divided in Illinois divorce?” and “the process of dividing debt in Illinois divorce”. Most couples think about the division of assets and property, but may forget about the division of debt in a divorce, which is an important financial aspect of divorce.

Types of debt in Illinois Divorce

Types of debt in Illinois Divorce

Debt is included in considerations of marital property. To review, you might be interested in our article “How Is Property Divided in a Divorce?”. As a reminder, marital assets will be divided through the divorce, non-marital assets are the property of one spouse.

Debt that was taken on at some point throughout the marriage is considered shared debt and will be split between the spouses. Anything that either spouse incurred before the marriage is their own debt and responsibility. For example, credit cards that were opened before marriage and are in only one spouse’s name are personal debt, whereas credit cards that were opened by the couple are marital debt. Debt can also be incurred from loans and joint accounts.

What impacts how debt is divided in Divorce?

The state a couple lives in has an impact on how debt is divided and whether it is evenly split or fairly split based on the specific circumstances. Factors courts consider when dividing debt in an Illinois divorce include specific spousal needs, length of the marriage, and which assets and awards each spouse is already receiving. The nature of purchases made on a credit card may also be considered in determining whether they related to the marriage or not.

The Process of Dividing Debt in Illinois Divorce

Illinois is an equitable distribution state, which means that rather than splitting debt 50/50, the debt will be split fairly between the couple. Courts split debt fairly with multiple factors, such as who is most responsible for the debt incurred.  However, debt may be balanced out and made fair through distribution of assets. It is likely that if one spouse receives a particular asset, such as a car, they also receive the debt associated with that asset, such as the car payment.

One of the most important things to remember is that both spouses are still responsible for the debt, and if one fails to make payments, creditors will pursue the other. Therefore, it is often advisable that couples make an effort to pay marital debt before the divorce process so that debts are not as big of an issue in divorce determinations.  

Posted 
November 16, 2020
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