How is Marital Debt Divided During an Illinois Divorce?

 Posted on June 17, 2026 in Property Division

When you get a divorce in Illinois, various things must be taken care of before you can finalize the divorce. One of the issues that can have a huge impact on your life is the property division process. Many couples have some form of disagreement about property issues, but most are so busy arguing over their assets that they forget that they must also determine what they will do with their debts.

Even though it may not be the most fun topic to talk about, all of your marital debts will also have to be included in your property settlement. The easiest way to deal with debt during divorce is to not have debt at all, but that is not feasible for many couples. Most will end up bringing some form of debt to the divorce that will need to be allocated.

At the Law Office of Ronald L. Hendrix, P.C., our Will County, IL divorce attorney can help you work out a tailored debt agreement in negotiations. With over 30 years of experience, our firm is equipped to assist with even the most complex cases.

Determining Whether Your Debt Is Marital or Separate in an Illinois Divorce

Not every debt that exists during a marriage belongs to both spouses. Marital debt is generally any debt either spouse took on during the marriage, regardless of whose name is on the account. It does not matter if only one spouse spent the money or signed the paperwork. If the debt was incurred while the marriage was intact, it may be treated as marital.

Separate debt is different. Debt a spouse brought into the marriage usually stays with that spouse. The same is often true for debt connected to property that was kept separate, or debt one spouse took on after the couple legally separated. For example, if one spouse maxes out a credit card on personal expenses after separation, that debt may not follow the other spouse out of the marriage.

The classification is not always straightforward. Separate debt can become marital debt if marital funds were used to pay it down, or if both spouses benefited from what the debt paid for. Courts look at the timing of the debt, the purpose it served, and how the couple treated it during the marriage.

How Is Debt Classified During an IL Divorce?

One of the first things you do when you begin the asset division process is to gather all of your information pertaining to your finances. Knowing the type of debt you have that needs to be divided will help you determine how it will be handled.

Secured debt is any debt that you have that has physical property attached to it. For example, the most common types of secured debt that couples have are mortgages and auto loans. If one of you wants to keep either the vehicle or the house, you will have to refinance the debt under that spouse’s name.

On the other hand, unsecured debt is debt that is not attached to a specific piece of physical property. The most common type of unsecured debt is credit card debt. Credit card debt can be easily transferred between accounts, so the balance or part of a balance on a credit card can usually be transferred to a new account in only one spouse’s name.

What Are the Risks of Improper Marital Debt Division in 2026?

Divorce agreements and court orders settle things between spouses. They do not bind the creditors who are owed money.

This is a problem that catches people off guard. If your divorce decree says your spouse is responsible for a joint credit card, and your spouse stops making payments, the credit card company can still come after you. Your name is on the account. From the creditor's point of view, the divorce never happened.

The damage can be serious. A missed payment will show up on your credit report. A defaulted account can drop your score significantly. In some cases, the creditor may sue you directly and seek a judgment against your wages or bank accounts – even though a judge already ordered your spouse to handle that debt.

How Does Equitable Distribution Affect Debt Division in Illinois?

Illinois does not split marital debt down the middle. Courts use equitable distribution, which means the goal is a fair outcome based on the full picture of the marriage and the divorce (750 ILCS 5/503). Several factors shape how a court divides debt between spouses:

• Each spouse's income and earning capacity at the time of the divorce
• The value of marital property assigned to each spouse
• Which spouse incurred the debt and for what purpose
• Whether the debt benefited the marriage or only one spouse
• The length of the marriage and the standard of living the couple maintained
• The economic circumstances each spouse will face after the divorce

Equitable distribution is a judgment call made by a court after weighing the facts specific to each case. A spouse who assumes most of the debt may receive more assets in return. One who kept finances separate and avoided shared accounts may face a smaller share. The outcome depends on the evidence presented and the arguments made on each side.

Can You Get Debts Discharged Before a Divorce?

Some people consider filing for bankruptcy before or during a divorce. It is a legal option, and in the right circumstances, it can change the debt picture significantly before any division takes place.

A joint bankruptcy filing can discharge certain shared debts entirely. If both spouses file together before the divorce is finalized, eligible debts may be wiped out rather than divided. That can simplify the divorce itself, because there is less to argue over. Medical debt, credit card balances, and personal loans are common examples of dischargeable debt.

However, not all debt can be discharged. Student loans, domestic support obligations, and debts tied to fraud or intentional wrongdoing typically survive bankruptcy. Secured debts like mortgages and car loans require the borrower to keep paying or give up the collateral.

Contact Our Will County, IL Debt Division Lawyers Today

While you probably will not be arguing with your spouse about who gets to keep certain debts, there is bound to be some sort of disagreement during the asset division process. At the Law Office of Ronald L. Hendrix, P.C., we understand how important it is to achieve an equitable balance of asset and debt distribution.

Our knowledgeable Joliet, IL debt division attorney can help you understand what the long-term effects of your decisions would be, so you can make the best choices. To schedule a free consultation, call our office today at 630-355-7776.