During divorce, couples must sort their financial affairs and determine who owns certain debts and assets. The start of debt division involves determining the total debt accumulated during the marriage, which can be done by obtaining credit reports from the three major bureaus. Debt division depends on whether the couple lives under community property or equitable distribution laws.
Distributing Debts Between Spouses
The next step in the debt division process requires an examination of each spouse’s credit report. By examining these reports, spouses and divorce lawyers in Yorkville, IL can determine which debts should be shared and which debts are singly held. Sorting shared debts can be complex, and divorcing spouses have several options.
Spouses can opt to pay the debt with their joint assets before the divorce process continues. This choice can help couples save the time, expense and hassle of determining who gets which debts.
Either spouse could decide to take a larger share of the couple’s joint debt in return for a greater portion of marital assets. While the other person may end up with less, they gain by having less debt to repay later.
The spouses can decide to evenly divide shared debts. In the view of creditors, this option makes both spouses equally responsible for the full payment of the debt.
How Courts Divide Debts After a Divorce
As part of a divorce decree, the court divides the spouses’ debts and assets. The presiding court will decide which person is liable for each debt. In most cases, community debts are equally divided, and courts typically balance debts to perform an approximately equal division. If one person pays a debt for which the other person is responsible, the person paying can petition the local court for a full reimbursement.
Should a Spouse Consult a Local Divorce Lawyer?
Divorces are complex, especially in cases where there are substantial debts and assets to be divided. It’s best for spouses to consult an attorney with when going through a divorce. Divorce lawyers in Yorkville, IL can represent the client’s interests in an unbiased, professional manner, and they can guide the spouses through the divorce’s legal processes.