What Happens to Credit Card Debt in an Illinois Divorce?

 Posted on October 15, 2024 in Divorce

Most people are familiar with many of the steps a couple needs to go through to finalize their divorce. They need to decide who will get what, when their child will be with either spouse, and how much child support or spousal support will be paid.

What some are surprised to learn is that debt amassed during marriage also needs to be divided during a divorce. If you are concerned you might get stuck paying for your spouse’s credit card debt in a divorce, contact a qualified Schaumburg, IL family law attorney to understand your options.

How is Debt Divided Among Spouses in Illinois?

Since Illinois divorce follows an equitable distribution model, assets and debts obtained during the marriage are to be divided fairly by the spouses. Equitable does not mean equal, so one spouse will likely end up receiving or paying more than the other.

Before figuring out how debt is divided, a couple needs to first determine what is marital debt and what is separate debt. Any credit card your spouse amassed before your marriage is generally considered her separate debt and you would likely not need to cover any of it. However, debt from purchases and payments made during the marriage is typically considered marital debt that you would both need to share responsibility for, even if the specific card in question only has your spouse’s name on it.

How Can Creditors Impact Your Divorce?

When a couple gets divorced, their creditors are not automatically updated and they are not obligated to reassign or cancel debt based on the divorce settlement. If your ex fails to pay the debt assigned to them in the divorce, the creditor can still hold you responsible for it, particularly if it is associated with a joint loan or account.

You should always notify your creditors when you are going through a divorce and let them know about any agreed-upon changes based on your division of debt. You might even be able to renegotiate your debt payment agreement.

What Happens if Your Ex Does Not Pay Their Debt?

There are a few options available if your ex fails to pay the debt assigned to them in your divorce. These include:

• Petitioning the judge to impose a judgment lien against their property

• Filing a motion to place your ex in contempt of the court

Any steps you take might not absolve you of liability with the creditor. The best thing you can do if your ex does not pay their debt is contact an experienced lawyer who can help you navigate this frustrating situation.

Contact a Schaumburg, IL Debt Division Lawyer

If you have questions about how your marital debt will be divided, a knowledgeable Schaumburg, IL family law attorney can answer them. At A. Traub & Associates, we understand how stressful and frustrating it can be to be saddled with extra debt and we will fight aggressively to protect your rights. Call us at 630-426-0196 to schedule a private consultation.