St. Charles Debt Allocation Attorneys

Allocation of Debt Lawyers Serving Clients in Kane County

When most people contemplate the financial aspects of getting a divorce, they focus on the division of assets. When dissolving a marriage, however, the division of debt is just as important. There are many debts that are considered marital debts, and each spouse may share some liability for marital debts.

At the Kane County divorce law firm of Goostree Law Group, we are experienced in handling divorces involving all types of debt. We strongly advocate for our clients' interests and make sure our clients are not unfairly burdened with debt from their marriages.

Distributing Marital Debt in Kane County

Marital assets are defined as any assets acquired during the marriage. Likewise, marital debts are defined as debts that are incurred during the marriage and prior to the date of separation. If a spouse comes into the marriage with debt, that is not considered marital debt. However, any debts acquired during the marriage, even those on loans or accounts in the name of one spouse, are considered marital debts. It does not matter whose name is on marital debt; both spouses can be held responsible for repaying the debt.

There can be some complicating factors when determining if a debt is a marital debt. If, for example, one spouse has a credit card in his or her name coming into the marriage, the balance on that credit card at the time the marriage began would not be marital debt. If that card is then used during the marriage for the benefit of the family or the marriage, those charges could be considered marital debt. Classifying what is and what is not marital debt can be a subject of contention and may need to be litigated.

Illinois Marital Debt Division

Once it is determined which debt is considered marital debt and subject to division, an arrangement must be made for how the debt will be repaid. This is part of a larger property division process and negotiation. While either spouse can be ordered to make payments on debt, even if it is not in their name, it is often recommended for each spouse to retain liability for the debt in their name. Higher debt burdens can be offset with a greater portion of assets. Taking responsibility for debt in your own name is a safety measure to prevent your credit from being affected if your ex-spouse misses a payment for any reason.

Contact Our St. Charles Debt Division Lawyers

If you are contemplating filing for divorce or are already involved in divorce proceedings, and you have marital debt, contact us at 630-584-4800 to schedule a free consultation. We will discuss your financial circumstances, answer your questions, and explain how Illinois law will apply to your divorce. Our attorneys work with clients throughout Northern Illinois, including Kane County and the surrounding areas.

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