Dividing Debt in a Divorce
Payment of debts during and following a divorce is often a difficult issue to resolve. The reality is that both spouses may struggle financially during a divorce, simply because one household has split into two separate households, each of which has its own share of expenses. Since non-payment of debts can have such a lasting impact on your credit and your financial future, it is imperative that you enlist the assistance of our experienced Chicago family law attorney who can help you reach an acceptable resolution to the payment of your marital debts.
Why Dividing Debt During Divorce Is So Important
Dividing marital debts in your divorce is just as important as dividing marital property. If you and your spouse have any joint car loans, mortgages, personal loans, credit card accounts, or lines of credit, you both are financially responsible for those debts. This means that even if your spouse is supposed to pay a particular debt, but he or she doesn’t do so, you are still legally responsible for paying that joint debt. To be sure, the creditor can take legal collection actions against you for that debt, even if your now-ex-spouse is supposed to pay for it. Additionally, even if your spouse separately incurred a debt during your marriage, you could be held responsible for it, depending on the situation. These facts make it essential that you work closely with experienced divorce lawyers who can help ensure that you don’t end up saddled with all of your spouse’s credit card debt.
How a Court Divides Marital Debts
In many cases, spouses are able to come to an agreement about who will pay what debt. In other cases, however, it is up to the divorce court to make a decision about a fair and just allocation of debts between you and your spouse. The court will consider different factors, such as your income, assets, existing liabilities, earning potential, and current employment situation in determining which spouse is responsible for each debt. If you are in a significantly better financial position than your spouse, for instance, and earn substantially more income, then you may end up with more than half of the marital debt, or even being responsible for debts that your spouse solely incurred. It is up to the discretion of the court to devise a resolution that is just and equitable for both parties involved. Your Chicago family law attorney will make sure that the court is aware of all the factors necessary to ensure a fair division.
Contact Our Chicago Family Law Attorney Today
If you are interested in seeking help from a family law attorney in Chicago, we are here for you. We know that if you are seeking help from a family attorney, you are likely dealing with a great amount of stress in your life and we would like to help take some of this burden off of your back. Family disputes, divorces, and child custody battles can all become quite messy and it is helpful to have an attorney on your side who can guide you through the process and give you the facts before making decisions and signing any documents. Want to see how we can help you? Contact our team at Hurst, Robin & Kay, LLC now.