Kane County Attorneys for Allocation of Debt
Lawyers for Allocating Debt in Divorce in St. Charles, IL
Dividing property in a divorce is a complex process that involves more than just dividing marital assets. Marital debts must also be divided, and both spouses often share liability for these debts. It is important to consider carefully all of the ramifications of how debt is allocated. At Shaw Family Law, P.C., our lawyers are experienced in dealing with allocation of debt within a divorce. We look at the big picture when handling property division matters and strongly advocate for our clients' interests in both negotiations and litigation.
Defining Marital Debt in Illinois
Marital debt is defined in the same way as marital assets. In general, both debt and assets that are acquired or incurred during the marriage are subject to division in a divorce. Debt that is incurred by one spouse prior to the marriage is not a marital debt.
For example, if a car is purchased during the marriage, the debt from the car loan would be considered marital debt. It does not matter whose name is on the loan or who drives the car. Conversely, if a spouse enters the marriage with thousands of dollars of credit card debt, that debt is not considered a marital debt and the other spouse does not share liability for repaying it.
Dividing Marital Debt
Classifying which debts are eligible for division in a divorce is the first step. The next step is to decide how that debt will be repaid and by whom. While both parties may share liability for a certain debt, it is often advisable to make an arrangement in which each party retains liability for debts that are in their names. This is a preferred arrangement because doing so makes each party responsible for their own credit report and does not allow one party's credit to be penalized if the other party fails to pay in a timely manner.
Because marital debt is part of the total property division agreement, it is possible for a party that assumes a greater responsibility for marital debt to be compensated for doing so with a greater share of marital assets. Our attorneys are skilled at crafting property division arrangements that are fair, make sense, and satisfy our clients desires.
If you are considering filing for divorce or your divorce proceedings have already begun, contact Shaw Family Law, P.C. by calling 630-206-3300 to schedule a free consultation. We will examine the financial circumstances of your divorce and discuss your options for dividing your marital debt. Our firm works with clients throughout Kane, Kendall, DeKalb, and DuPage Counties including St. Charles, Geneva, Aurora, Batavia, Wheaton, Yorkville, Elgin, DeKalb, and the surrounding areas.