Understanding Debt Division During Divorce in Illinois

 Posted on July 21,2015 in Division of Assets

Many couples consider drafting prenuptial agreements that cover the division of marital assets, and property or income that each spouse owned separately before the marriage, but few consider what will happen to any collective debt as a couple, if they decide to divorce. This can present a tricky situation for both parties, as some obligations can be on shared accounts, or may have benefited both parties in a way that both would be responsible for paying off the debt following a divorce.

One of the best ways for a couple to handle debt if they are planning on getting a divorce is to pay off or resolve the debt before filing to have their marriage ended. However, it can be difficult for both sides to come to an agreement on what their fair share of the debt should be. If a family court has to decide how to divide the debt, it will use the state’s guidelines for equitable distribution in order to decide how much debt each party will be responsible for after the divorce. These guidelines do not simply divide the debt down the middle and give half to each party, and the outcome can sometimes be less than favorable for one of the parties.