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.

Few people know how challenging and complex the financial side of a divorce truly is. There are so many financial considerations that need to be made when a divorce is taking place. If the divorcing parties have children, which parent will pay child support? Or how will the distribution of marital property be handled? All of these financial questions and more arise when going through a divorce.

During divorce proceedings, an incredibly challenging subject and often an area of contention is whether each spouse is truthful regarding financial information. The situation can become even more complicated if one spouse acts in a way that causes financial harm to the other. For example, suppose you are getting a divorce and believe your spouse is recklessly indulging themselves in expenditures unrelated to the marriage, like using money to fuel a gambling or drug addiction. In that case, you may be able to file for a dissipation of assets claim. To understand how to proceed while ensuring your rights and best interests are protected, contact an experienced divorce attorney who has worked with cases where the dissipation of assets was a factor during divorce proceedings.

What Constitutes a Dissipation of Assets? 

All assets acquired by either spouse during a marriage are referred to as the marital estate. During a divorce, couples must split up the marital estate equitably. Unfortunately, there are certain cases where the reckless actions of a spouse led to a drop in the value of the marital estate. In some instances, these reckless actions may constitute dissipation of assets. If a spouse behaves in such a manner, the other spouse should bring these matters to the court's attention to ensure that the marital estate is divided appropriately. Asset dissipation can look like a lot of different behaviors, including the following: 

It is often said that there is nothing more challenging and contentious than getting a divorce. While divorces are often emotionally taxing, the financial implications of a divorce can be even more devastating. As a result, topics such as the division of marital property can be highly combative. Not only can the matter be contentious, but it can also be deeply complex. 

Of all the financial issues during a divorce, figuring out what happens to the marital home can be incredibly challenging. While it is not guaranteed that the marital home will need to be sold, it is usually brought to the table and discussed. Assuming both spouses own the house, they can either sell the home or stay in the home and deciding who gets to stay is tough. If you are seeking a divorce and the division of marital property is an issue relevant to your case, consult an attorney who can protect your rights and walk you through the pros and cons of selling the marital home. 

Pros of Selling the House

At the outset, both spouses should know the home's accurate value. This will likely involve getting the house appraised to see what the house is worth on the current housing market. It will also be essential to know the monthly and annual costs of the house. This may include mortgage payments, utilities, and homeowner's insurance. If it is decided that the marital home will be sold, the money from the sale is usually split between the divorcing parties. Sometimes, a spouse may choose to "buy out" their spouse. This refers to paying the spouse what they would have received had the house been sold to a third party.

Couples with a high net worth often have a broad portfolio of assets they use to diversify their investments and ensure their risk is spread out across both high-risk and low-risk areas. Rented real estate presents a prime opportunity for couples who can afford the down payments to have an asset that is all but guaranteed to increase in value while also providing rental income. 

Jointly owned investment properties are considered part of the marital estate and must be divided in an Illinois divorce. A couple may strongly disagree about how they want to manage both the value and the liability of an investment property, which can present significant challenges. 

How Much Is the Rental Property Worth? 

Before an asset of any kind can be divided in a divorce, its value must be assessed. Sometimes spouses prefer to sell an investment property and split the proceeds. In these cases, a property will simply be put on the market, and, once a suitable buyer is found, a couple will decide how to split the proceeds from the property’s sale minus whatever money a couple still owes on the mortgage. 

The legal and financial aspects of marriage are often overlooked in our romantic conception of relationships. However, finances are an important part of any marriage – and perhaps even more important in a divorce. One particularly difficult aspect of determining how marital property is divided in a divorce is the valuation and division of complex assets, especially when those assets and the individuals who own them have a high net worth. 

What is a Complex Asset? 

Complex assets include assets made up of multiple components, each of which may contribute to the asset’s value. For example, an investment portfolio that has funds in securities, bonds, and small-cap stocks can change in value from day to day and would be considered a complex asset. By contrast, cash in a savings account, a car, or any other asset which may be quickly sold for an easily estimated amount of money would not be considered a complex asset. 

Small businesses are one of the most common types of complex assets handled in a divorce. Even if a business owner started or acquired a business before getting married, that business may still be considered marital property. If the spouse contributed money or time to the business, he or she may be entitled to an equitable share of the company in the divorce. Spouses may be able to reach an agreement about the division of assets through negotiations or an alternative resolution method like collaborative law. If spouses cannot reach a settlement, the court may determine the division of assets.