Questions to Ask When Addressing Debts During a Divorce

 Posted on July 29,2024 in Division of Property

Going through a divorce is tough, especially when you need to split up not only the assets but also the debts. In Illinois divorce, figuring out how to divide debt can be tricky, requiring the assistance of a trained attorney. During this process, you need to ask the right questions to make sure everything is fair. Here are some key questions you should consider if you have debt to divide in your divorce.

Did Your Spouse ‘Run Up’ the Balance on a Shared Credit Card?

Here is what to keep in mind:

• Timing matters – When did the balance increase happen? Was it before or after you decided to get a divorce?

• Intentional spending – Is there evidence that your spouse intentionally increased spending in anticipation of the divorce to burden you with more debt?

• Nature of purchases – Were the expenses related to joint needs or personal luxuries?

• Document everything – Do you have detailed credit card statement records and receipts to track expenses accurately?

Is the Debt Connected to an Asset Only Received by One Spouse?

Remember to consider these key points:

• Justifying the purchase – Did the debt help one spouse buy something valuable like a house or a car?

• Asset ownership – Which spouse will retain ownership of the asset financed by the debt?

• Equity considerations – Is there built-up equity in the asset that should be factored into the overall financial settlement?

• Debt responsibility – Should the debt be associated solely with the spouse awarded the asset, thereby removing it from the marital debt share?

Which Spouse Will Benefit?

Additional questions to consider:

• Beneficiary assessment – Who is directly benefiting from the expense that created the debt? For example, student loans for one spouse’s education should typically be attributed to that spouse.

• Debt fairness – Is the debt division fair and logically tied to the receiving parties’ benefits?

• Future liability—Does assigning the debt to one spouse better align with his or her ability to repay, considering future earning capacity?

Contact a Mt. Prospect, IL Marital Debt Division Attorney

Handling debts in an Illinois divorce means being careful and keeping good records. By asking these important questions, you can proactively ensure whatever debt is relevant to your divorce is divided fairly. As with all matters relating to divorce, hiring a legal professional is an important part of the process.

For a law firm with a successful record of helping clients divide debts effectively, contact the Palatine, IL marital debt division lawyer with The Law Office of Nicholas W. Richardson, P.C.. Attorney Richardson takes the pain out of the process and can help you obtain a favorable divorce settlement. To get started, contact 847.873.6741 for a free consultation today.