How is Credit Card Debt Handled in an Illinois Divorce? 

 Posted on December 15, 2022 in Property Division

Credit card debt is an issue for so many people across the United States. You may be shocked to learn that in 2021, a typical American's average amount of credit card debt was $5,525. If not taken care of proactively, credit card debt can significantly hinder people financially. Sometimes, debt may be carried for years and become a tremendous burden.

While credit card debt is an issue for most Americans, it becomes an even bigger issue in the event of divorce. If you and your spouse are pursuing a divorce, you may be interested in what happens to credit card debt. If you are getting a divorce and are concerned about how credit card debt will be handled, consider contacting a knowledgeable Illinois divorce attorney who will ensure your rights remain protected throughout the divorce process. 

How Is Credit Card Split in Illinois Divorce? 

Understand that if the credit card debt were acquired during the marriage, the creditor would likely cite you and your spouse as the party responsible for it. On the other hand, if either spouse incurred the debt before they became married, the debt is likely to be considered personal debt and must be paid for by whoever bought the items.

Illinois is an equitable distribution state, which means that jointly held debt is not necessarily divided exactly 50/50 by the court. Instead, the judge will weigh several factors when splitting the debt. These factors may include the following:

• The financial resources of each spouse

• The personal assets of each spouse

• The length of time the marriage lasted

• The amount of child support and spousal maintenance each spouse will pay or receive

The judge may also consider who benefited from the credit card purchases. For instance, if the spouse who bought the items was the only person who benefited from them, then the judge may classify that debt as personal debt for whoever benefited from it. However, if the purchases benefited the family while married, the judge may consider this an example of marital debt, even if it is held under the name of just one spouse. 

Safeguarding Your Credit Score During a Divorce

Protecting your credit score is essential during your divorce proceedings. Understanding more about your financial accounts and debt, creating a budget for how you will spend money after your divorce, and removing your spouse as an authorized user of any credit cards you may possess, are all ways you can protect your credit score as you go through your divorce and prepare for your future. 

Contact a DuPage County Divorce Attorney

Getting a divorce is challenging enough. Do not let worries about credit card debt weigh you down like an anchor as you try to transition to a new stage of your life. Instead, contact the compassionate and dedicated Wheaton, IL divorce lawyers with The Stogsdill Law Firm, P.C.. Call 630-462-9500 today for a comprehensive consultation. 

Sources:

https://www.annuity.org/personal-finance/average-credit-debt/

https://www.ilga.gov/legislation/ilcs/documents/075000050k503.htm