Illinois Debt Division Lawyer & Rockford Marital Debt Attorney

Non-marital debt generally includes liabilities that either spouse incurred prior to the marriage. Spouses may designate debt as non-marital by executing a written agreement. For example, debts related to a gift or inheritance to only one spouse, such as an inherited house, can be detailed in such an agreement.

Common types of debt that are divided in Illinois divorce cases include:

• Car, truck, or motorcycle loans
• Home mortgages
• Credit card balances
• Student loans
• Medical bills
• Personal loans
• Tax obligations
• Business debts

Illinois is a non-community property state, meaning that all marital property and debt must be equitably distributed. However, equitable distribution does not equate to equal; rather, Courts must divide debt based on what is fair in accordance with the specific circumstances of the parties.

If ex-spouses can come to an agreement regarding debt division, it can significantly influence a court’s final determination. As such, it is critical to retain an experienced divorce attorney who can zealously advocate for a favorable outcome.

If you are going through a divorce, we invite you to call our office to schedule a free consultation to learn how experienced Rockford divorce attorney James O. Teeter Jr. can handle your asset and debt division from start to finish.

Under the Illinois Marriage and Dissolution of Marriage Act, both parties are required to present an accurate accounting of their finances to the divorce court, known as a Financial Affidavit.[1]

Attempts to furnish false information on a financial affidavit are punishable by economic sanctions, including attorney’s fees. Consequently, it is critical to ensure that all information and documentation are accurate.

As a divorce law firm that has been serving Rockford and the surrounding communities for years, we regularly assist in preparing comprehensive Financial Affidavits, as well as assemble required documentation that must accompany an affidavit, including:

• Recent income tax returns;
• Recent pay stubs or other proof of income;
• Recent bank statements; and/or
• Other documents supporting statements about expenses, debts, and assets.[2]

[1] Financial Affidavit, Illinois Courts, https://www.illinoiscourts.gov/forms/approved-forms/forms-approved-forms-circuit-court/financial-affidavit/.

[2] Getting Started Financial Affidavit (Family & Divorce Cases), Illinois Courts, https://ilcourtsaudio.blob.core.windows.net/antilles-resources/resources/af7686e0-cdf7-4dbd-ba96-098ec95a5a1b/FA%20Getting%20Started.pdf.

It is not uncommon for one spouse to handle most of the finances and bookkeeping. Under these circumstances, divorce and debt division proceedings can expose liabilities that the other spouse was unaware of. If the unknowing party can prove he or she was completely unaware of the debt, the court may assign it solely to the ex-spouse, especially if it was not used for the benefit of the marriage or family.  However, just because a spouse does not know about such debt does not automatically mean that they will not be responsible for any part of the debt.