How is Marital Debt Divided During an Illinois Divorce?

 Posted on May 27,2021 in Property Division

When you get a divorce in Illinois, there are various things that must be taken care of before you can finalize the divorce. One of the issues that can have a huge impact on your life is the property division process. Many couples have some form of disagreement about property issues, but most are so busy arguing over their assets that they forget that they must also determine what they will do with their debts. Even though it may not be the most fun topic to talk about, all of your marital debts will also have to be included in your property settlement. The easiest way to deal with debt during divorce is to not have debt at all, but that is not feasible for many couples. Most couples will end up bringing some form of debt to the divorce that will need to be allocated.

Classifying Debt During Your Divorce

One of the first things you do when you begin the asset division process is to gather all of your information pertaining to your finances. Knowing the type of debt you have that needs to be divided will help you determine how it will be handled. Secured debt is any debt that you have that has physical property attached to it. For example, the most common types of secured debt that couples have are mortgages and auto loans. If one of you wants to keep either the vehicle or the house, you will have to refinance the debt under that spouse’s name. On the other hand, unsecured debt is debt that is not attached to a specific piece of physical property. The most common type of unsecured debt is credit card debt. Credit card debt can be easily transferred between accounts, so the balance or part of a balance on a credit card can usually be transferred to a new account in only one spouse’s name.

Contact Our Will County Debt Division Lawyers Today

While you probably will not be arguing with your spouse about who gets to keep certain debts, there is bound to be some sort of disagreement during the asset division process. At the Law Office of Ronald L. Hendrix, P.C., we understand how important it is to achieve an equitable balance of asset and debt distribution. Our knowledgeable Joliet, IL debt division attorneys can help you understand what the long-term effects of your decisions would be so you can make the best choices. To schedule a free consultation, call our office today at 630-355-7776.

Sources:

https://www.thebalance.com/dealing-with-debt-during-divorce-960632

https://www.ilga.gov/legislation/ilcs/ilcs4.asp?DocName=075000050HPt%2E+V&ActID=2086&ChapterID=59&SeqStart=6200000&SeqEnd=8600000