When you marry someone, you expect to share your life. Part of this includes your finances.
Many couples have joint checking accounts and retirement savings. They live in a home together, purchase valuable items, and purchase insurance policies under their names.
Upon divorce, you likely know that property and asset division is a big part of the process. However, do you know what happens to your debts?
Illinois follows the equitable distribution of assets and debts
Many divorcing couples don’t realize that the equitable distribution rules apply to assets and debts in Illinois.
When you split your savings and retirement accounts, you will also split your credit card debt and other liabilities you have taken on during your marriage. This applies to debts acquired during the course of the marriage, even if they are only in one person’s name.
The divorce judge will consider the balance of all your debts and factor these obligations into property distribution decisions. Any debt acquired during the marriage will be included, and spouses will likely be required to share the repayment responsibilities.
Splitting debts in an Illinois divorce
When it comes to splitting debt in a divorce, there are many factors a judge will consider. These include each spouse’s income and the length of the marriage. Remember, equitable division does not mean that assets and debts will be split 50-50. Instead, it is based on each person’s financial situation and needs.
Knowing your rights for property division
Property division is a big part of any divorce. Understanding how debts are handled can help you protect your rights in this situation and ensure you are not saddled with more debts than you can handle.