Three Tips to Avoid Marital Debt in Your Divorce

 Posted on January 28, 2025 in Property Division

Property division in a divorce can be convoluted to sort out. Many people are surprised to find out that they could be responsible for their spouse’s debt, even if they seemingly had nothing to do with it. Thankfully, you can take steps to try to avoid marital debt in a divorce. An Illinois divorce attorney can help you plan around potential sources of liability, protecting you in the long run.

At Law Offices of Tedone and Morton, P.C., we have the experience to assist you with complex issues of property division, including debt division. We secure results outside of court through aggressive negotiations, but if necessary, we can take your case to court.

Separate Credit Cards

Credit cards can be an unexpected source of debt during a divorce. If you and your spouse shared a credit card during your marriage, you could end up paying for a portion of that debt even if you did not accrue it yourself.

Personal purchases that do not benefit the marriage are sometimes considered the responsibility of just one party, so if your spouse tends to be a spendthrift, maintaining separate credit cards may be a practical option for avoiding marital debt. However, keep in mind that a judge will have the final say about any division of debt in court. For that reason, you should consider working with an experienced divorce attorney who can advocate for your best interests in court.

Prenuptial and Postnuptial Agreements

Prenuptial and postnuptial agreements can be used to keep you and your spouse’s debts from commingling. These agreements are largely the same, with the only difference being that prenuptial agreements are signed before your marriage, while postnuptial agreements are signed after your wedding.

The main purpose of a prenup or postnup is to settle any property or financial disputes ahead of a divorce. For example, you could specify that you will not be responsible for your spouse’s student loans if you get divorced, even if your spouse’s education contributes to your shared income. A family law attorney can help you negotiate a fair agreement with your spouse, factoring in multiple sources of liability.

Refinancing 

Refinancing a debt may provide a legal way to take your name off of a loan, ensuring you will not be held responsible for any further payments. Multiple kinds of debt can be refinanced, most commonly home mortgages or car loans. Many spouses divide their debt during divorce in a way that allows one spouse to take on certain debt entirely, while the other spouse takes on other debt, allowing each to walk away with debt in their name only.

Although refinancing a debt can be convenient, it does not always come without complications. If you are considering refinancing a mortgage or other loan, the refinanced loan must still be approved by the lender. This is based on your or your spouse’s ability to pay the loan according to the new terms.

Furthermore, if your spouse takes on substantial debt as a result of refinancing, he or she may receive a greater share of property or assets according to Illinois’ laws about equitable distribution. And, ultimately, no matter whose name is attached to a debt, a court can order either spouse to pay it.

Meet With a Joliet, IL Divorce Lawyer Today

Divorces are full of unknowns. A Will County, IL family law attorney at the Law Offices of Tedone and Morton, P.C. can take measures to protect you from shouldering an unfair burden of marital debt. To schedule a free consultation today, call our offices at 815-666-1285.