Division of Debt During Divorce in Illinois
A couple can accumulate a lot of things during the course of their marriage. This includes children, friends, memories, property, and debt. When a couple divorces, dividing up debt is every bit as important as the division of property and the custody of children.
The division of debt can be a complicated phase of the divorce process. It often leads to one or both spouses feeling that they've been saddled by more debt than they should owe. You have the right to receive a fair divorce settlement as you transition and begin to rebuild your life. It’s important to hire an experienced family law attorney to represent you throughout your divorce proceedings.
The expert Chicago legal team at Nottage and Ward, LLP has represented people going through divorces for over 25 years. We serve Cook, DuPage, Lake, and McHenry Counties.
Call our Chicago divorce debt division lawyers at (312) 322-2915 for a consultation.
What Kind of Debt Can Be Divided?
Every individual case is different, but the following types of debt can typically be divided up between divorcing couples:
- Debt from jointly signed loans, such as automobile loans and home mortgages
- Debt on jointly held credit cards
- Credit card debt amassed during the course of a marriage
- Debt from a jointly owned company
One spouse won't be assigned debt the other spouse incurred before they were married, unless they become a co-signed user of that credit source or contribute to its payment.
How is the Debt Assigned?
The courts assign debt based several factors, including your personal financial situation, and your future earning potential, compared to that of your ex partner. This sometimes results in one spouse being assigned outstanding debt that they didn’t actually have anything to do with.
For instance, if you earn significantly more money than your ex spouse, you may be assigned debt from loans and credit cards that aren't even in your name. Also, even if the court assigned a certain debt to your ex spouse, banks and other loaning institutions can take collection action against you if you were ever a co-signer and your former partner doesn't make payments.
Divorce settlements are considered private contracts and they DO NOT protect you from credit institutions seeking to enforce the terms of their contract with you.
The court will also take into account your relationship history and financial history when assigning debt. If your spouse worked and supported you while you got your education, you may be assigned a certain amount of debt they amassed during that period.
Getting a Fair Settlement
A divorce is a difficult time for all those involved, and you want to make it painless as possible. Getting a fair settlement when dividing up assets and debts can help you during your transition into a new life. Experienced Chicago divorce attorneys like those at Nottage and Ward, LLP can represent your interests during every phase of your divorce.
Call us for a consultation at (312) 322-2915.
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Leslie has been the strongest representation I could ask for
Leslie has been the strongest representation I could ask for in a very complicated, emotional matter. She has continuously looked out for my best interest and the best interest of my son. She is always prompt in getting back to me and in keeping me well informed about my case.
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