Who Pays a Spouse’s Credit Card Debt in an Illinois Divorce?

 Posted on September 20,2024 in Adoption

Divorce is often a stressful experience to go through. As a couple navigates the division of assets and allocation of debts that is an important part of a divorce, you are probably wondering who will be responsible for paying for the credit card debt that your spouse amassed. A seasoned Kane County, IL debt division attorney can review your case and offer valuable guidance.

How Does Debt Division Work in Illinois?

Illinois follows a model of equitable distribution in divorce. That means that all the assets as well as debts that were acquired during a marriage are divided fairly, not necessarily equally, between the spouses. However, with debts as with assets, there is a differentiation between marital debt and separate debt.

Generally speaking, credit card debt accrued during a marriage is considered marital debt, regardless of which name appears on the credit card. If your spouse used her credit card to pay for things for your household or related to your children’s needs, this would be something you would need to split financial responsibility for. Any debt that your spouse had before you were married is considered her separate debt, and you would not share responsibility for it.

The Importance of Documentation for Debt Division

It can make a big difference for your case if you have careful records of your finances, specifically anything showing how the debt accumulated. Your lawyer can use bank statements, credit card statements, loan documents, payment receipts, pay stubs, and tax returns to advocate for an acceptable division of marital debt based on your contributions, ability to pay, and any extenuating circumstances.

How Creditors Factor in Illinois Divorce

Creditors are not automatically notified that a couple is divorced. Inform your creditor about your proceedings and any related changes in responsibility for the joint debt.

In general, creditors are also not required to cancel or reassign debt responsibility on the basis of a divorce decree. If your divorce decree requires your spouse to pay a particular debt but fails to do so, you could still be held responsible by the creditor if it was incurred in a joint account or jointly signed loan. You might want to negotiate a revised agreement with your creditor that reflects new debt payment arrangements based on the divorce.

If your spouse fails to pay their share of the debt that the court ordered them to cover, you have some options, including:

• You can request that the court place a judgment lien against your ex’s property.
• You can file a motion for contempt of court. However, this does not necessarily absolve you of responsibility to the creditor.

Schedule a Free Consultation with a St. Charles, IL Debt Division Attorney

If you are concerned about how your spouse’s credit card debt will affect you in divorce, a knowledgeable Kane County, IL divorce lawyer can help clear up some of the confusion. At Goostree Law Group, we use our years of experience to help clients reach settlements that protect their financial future. Call us at 630-584-4800 to schedule a free consultation.