Subscribe to this list via RSS Blog posts tagged in marital debt

Posted on in Division of Property

Hoffman Estates family law attorney, dividing debt, debt and divorce, marital debt, marital propertyOne of the perks of marriage is sharing and receiving benefits from a spouse’s property and income. However, this can become a huge negative when a couple divorces.

In addition to dividing marital assets, a divorcing couple is also expected to divide marital debt. Deciding how to handle these obligations can be tricky, and both parties may benefit from settling property division before a divorce is finalized, or at the very least, via a private agreement.

If the Court gets involved in deciding this issue, Illinois follows the equitable division of marital property system in divorce. Equitable division requires Courts to determine the fairest way to split a couple's marital property by taking into account a variety of factors set forth in Illinois statute. In practical terms, this may mean the division is not equal. Moreover, as the division concerns marital debt specifically, how the debt was accumulated can greatly influence how a Court decides to allocate that debt.

...

Palatine family law attorney, debt division, Illinois divorcesWhen a couple dissolves their marriage, all marital property, including both assets and liabilities, must be allocated between the spouses. Dividing marital debt is a similar process to dividing assets; however, there are unique issues that come with apportioning debt in a divorce.

Equitable Distribution

The best and simplest solutions are when spouses are able to either pay off their debt or collectively divide their debt before filing for divorce. However, these options are not always possible, and the Court may need to split the marital debt.

...

Illinois Equitable DivisionIllinois is an equitable distribution divorce state, meaning that all assets the spouses accumulated during the marriage, or any assets brought into the marriage that become marital property due to commingling, are divided equitably in the divorce. This usually, but not always, means the marital assets are divided equally.

Equitable distribution does not necessarily mean that every asset is split down the middle. Barring special circumstances that entitles one spouse to receive more than one-half of the marital assets, each spouse will be awarded 50 percent of the total value of the marital estate and 50 percent of all marital debt. This means that the spouses can get creative in how the assets are divided.

Equitable Division of Marital Assets – A Case Study

...
 

Call Today at 847.873.6741 for Your FREE Initial Consultation

We Accept:Credit Cards

Address800 E. Northwest Highway, Suite 321, Palatine, IL 60074

Phone847.873.6741     Fax847.221.3626

Facebook LinkedIn

Resources Privacy Policy Disclaimer Sitemap

© 2020 The Law Office of Nicholas W. Richardson, P.C.
800 E. Northwest Highway, Suite 321, Palatine, IL 60074 | 847.873.6741

OVC Logo