Are You Liable for Your Spouse’s Debts After Divorce?

 Posted on June 20, 2025 in Divorce

When a marriage ends, most people expect to divide assets, but few anticipate the financial hurdles that come with debt. From shared credit cards to medical bills or business loans, the question of who pays what after the divorce can quickly turn a difficult situation into a high-stakes financial puzzle. 

In Illinois, the law does not always treat debt the way people would assume. A bill in your spouse’s name could become your responsibility, or a debt you never knew existed might suddenly impact your credit.

Understanding how state courts classify and divide debt is vital to protecting your future. A Wheaton divorce attorney can help you untangle complex financial obligations and advocate for a fair division of assets and debts.

What Types of Debt Are Considered in an Illinois Divorce?

In Illinois, debts are categorized as either marital or non-marital. Marital debt includes anything borrowed or charged by either spouse while the couple was married, even if the account is only in one person’s name. Non-marital debt refers to debt taken on before the marriage began or after the couple legally separated. This can also apply to debts excluded by a valid prenuptial or postnuptial agreement.

For example, if a spouse took out a credit card during the marriage and used it to cover household expenses, that debt would likely be considered marital. However, if the card was opened before the marriage and used for personal expenses unrelated to the relationship, it may be classified as non-marital.

How Does Illinois Law Divide Debt in Divorce?

Under the Illinois Marriage and Dissolution of Marriage Act, marital property and debts are divided according to the principle of equitable distribution. This does not mean a 50/50 split. Instead, the court aims to divide assets and obligations fairly, based on several case-specific factors.

These factors include the length of the marriage, each spouse’s contributions to the household, the value of property assigned to each spouse, and the financial circumstances each party will face after the divorce. The court may also consider whether one spouse wasted marital assets or took on debt for selfish or destructive purposes.

For instance, if one spouse accrued debt from gambling or financing an extramarital affair, the court might assign that debt solely to the responsible party. However, debt used for shared expenses, like mortgage payments or car loans, will likely be divided between both spouses, even if only one name appears on the loan documents.

Am I Responsible for Debts in My Spouse’s Name?

Just because your name is not on a particular account does not automatically mean you are free from responsibility. If the debt was incurred during the marriage and used for the benefit of both spouses or the family, Illinois courts are likely to consider it a marital obligation, regardless of whose name is listed on the account.

For example, if your spouse opened a store credit card and used it to furnish your shared home, the court may decide that both parties should repay that debt. On the other hand, if your spouse took out a personal loan for business expenses unrelated to the household and did not use any marital funds to repay it, that debt may solely remain his or her responsibility.

What Happens If My Spouse Does Not Pay His or Her Share?

Even after a divorce decree assigns a particular debt to one spouse, creditors are not required to honor that division. If both spouses are listed on a loan or credit card, the lender can go after either one for repayment, even if the divorce agreement assigns the debt to just one person. This can lead to late payments, damage to your credit score, or even lawsuits, despite not being legally responsible for the debt under the divorce order.

To protect yourself, it is essential to take proactive steps like:

• Requesting indemnification provisions in your divorce judgment, which require your former spouse to reimburse you if you are forced to pay a debt that was assigned to him or her

• Refinancing or closing joint accounts wherever possible so that you are no longer legally tied to your spouse's financial decisions after divorce

Monitoring your credit report and quickly addressing any issues can also help minimize long-term consequences from your ex-spouse’s errors.

Can We Agree on How to Split the Debts Ourselves?

Spouses going through an Illinois divorce can negotiate a marital settlement agreement, which outlines how both assets and debts will be divided. Courts generally approve these agreements as long as they are equitable and made without coercion.

By negotiating the terms of debt division, you and your spouse can tailor the outcome to your financial realities. One party might agree to take on a larger share of debt in exchange for keeping a valuable asset, like the marital home or retirement funds.

However, it is crucial to have legal counsel review any proposed agreement to ensure that your rights are protected and that you are not accepting more responsibility than what is fair or manageable.

How Can I Protect Myself from Unfair Debt Allocation?

Protecting yourself from an unfair share of marital debt begins with proper preparation. You should start by gathering all financial records, including account statements, loan agreements, and credit reports. A complete picture of your marital finances will help your attorney build a strong case for equitable distribution.

You should also take steps to separate your financial ties as soon as possible. If you can pay off and close joint accounts before the divorce is finalized, you may be able to reduce your liability for debts your spouse could rack up in the future. You should also avoid co-signing any new loans or credit applications during the divorce process.

Additionally, it is important to include specific provisions in your divorce decree that shield you from financial issues if your spouse fails to follow through on his or her debt responsibilities. These provisions can serve as a basis for legal enforcement if problems later arise.

Contact a DuPage County, IL Debt Allocation Attorney

Dividing debt during divorce can be complicated, especially when marital and non-marital obligations overlap. If you are concerned about your financial responsibilities post-separation, a knowledgeable Wheaton, IL divorce attorney at Goostree Law Group can help you understand your options under Illinois law. Call us today at 630-584-4800 to schedule a free, confidential consultation.