Understanding the Division of Marital Debt in an Illinois Divorce

Divorce can be a complex and emotionally charged process, and the “money stuff” doesn’t make it any easier. The truth is that most couples disagree about money at some point, and divorcing couples invariably do. One large part of the divorce process is figuring out what to do with all the joint debt a couple has accrued during the course of their marriage. This is a sensitive issue that deserves careful attention. It can also have a profound impact on the financial futures of both parties.

In Illinois, the Illinois Marriage and Dissolution of Marriage Act (IMDMA) provides a framework for addressing marital debts, and an experienced family law attorney can help you make sense of it all.

What Does the Law Say About Splitting Marital Debt?

The IMDMA, particularly 750 ILCS 5/503, outlines the principles governing the division of both marital property and marital debts during a divorce. The law distinguishes between marital property, which includes assets and debts acquired during the marriage, and non-marital property, which includes assets and debts that belong solely to one spouse due to inheritance, gift, or pre-marital acquisition.

Definition of Marital Debt vs. Non-Marital Debt

Marital debt is defined as all debt acquired by either spouse during the marriage, with certain exceptions. Debts incurred during the marriage, such as credit card debt, mortgages, and loans for joint purchases typically fall under this category.

Examples of marital debt include the following:

• Mortgages
• Joint credit card debt
• Auto loans
• Home equity lines of credit
• Medical debt of the parties and their children

Examples of non-marital debt include the following:

• Mortgage for any property purchased prior to the marriage
• Student loan debt
• Inherited debt

Principles of Equitable Distribution

Illinois follows the principle of equitable distribution, meaning that debts and assets are divided fairly in a divorce, which does not necessarily mean equally. The court considers the factors outlined in 750 ILCS 5/503(d) when determining how to equitably divide debts, such as the duration of the marriage, each spouse's contribution to the marital estate, tax implications, and the economic circumstances of both parties post-divorce, among many others.

The classification of debt can significantly affect the financial outcomes for both parties. Marital debts are typically divided based on equitable principles, while non-marital debts remain with the originating spouse.

Learn More About Allocation of Debt in Illinois Divorce

The division of marital debt in an Illinois divorce is governed by the principles set forth in the IMDMA, which emphasize equitable distribution based on various statutory factors. How and to whom the marital debt gets allocated is a big deal, and it can impact both you and your ex for the rest of your lives.

to a skilled and experienced family law attorney today for help negotiating how debt will be split in your divorce proceedings. The team at O. Long Law, LLC, is standing by and ready to help.