Do I Have to Pay For My Spouse’s Debts After a Divorce?

 Posted on November 22, 2024 in Asset Division

Recently, a husband discovered his wife of thirty years had secretly accrued almost half a million dollars in debt. The husband stated that his wife had always handled their marital finances while he focused on his career and brought home the paycheck. While admitting that he "…always felt like things were not quite right," he claimed that while he had a cursory understanding of the couple’s finances, he failed to grasp the severity of the situation.

Once he realized the couple’s bank accounts were frequently overdrawn and that multiple loans had been taken out in his name without his knowledge, the husband decided to take over the handling of the couple’s finances. He said that what he found "horrified" him. The couple was more than half a million dollars in debt, their home had multiple mortgages on it, and all their credit cards were maxed out.

Although the husband decided to stick it out and work on paying off their debt rather than seek a divorce, many spouses would not be so understanding. In fact, money issues are among the top reasons couples divorce, with 36 percent of divorced spouses saying financial reasons were the main cause.

If you are in the middle of a divorce and find out that your spouse has racked up thousands in debt without your knowledge, are you equally responsible for that debt? In many cases, the answer to that question is more than likely "yes." If you find yourself in such an untenable situation, speaking to a Wheaton, IL divorce attorney skilled in the division of marital debt is extremely important for your future.

What is the Illinois Equitable Distribution Rule?

A handful of states still operate under community property law, while the majority, including Illinois, are equitable distribution states. In a community property state, all marital assets and debts are divided 50/50, usually regardless of any extenuating circumstances. Equitable distribution holds that marital assets and debts are divided fairly, although not necessarily equally.

This means one spouse is likely responsible for the other’s debts except in very limited circumstances. Some spouses have "separate" debts or debts with which they came into the marriage. These debts are usually considered the sole responsibility of the spouse who initially incurred them – with a caveat. If marital funds were used throughout the marriage to pay for a spouse’s separate debt, the lines can be fuzzy, and one spouse may seek reimbursement for these payments.

Under Illinois Equitable Distribution Rules, Do I Have to Pay My Spouse’s Debt?

What about a debt one spouse incurred without the other’s knowledge or a debt incurred after the couple’s initial separation? Depending on the circumstances, a judge might consider such debts a dissipation of marital assets and will adjust the division of assets to reflect this decision. In a scenario where one spouse was having an affair and accrued significant credit card debt for gifts and trips for that person, a judge would likely see this as a dissipation of marital assets.  

However, if the other spouse was incurring credit card debt for nice clothing, jewelry, and furniture for the home, a judge may or may not consider this dissipation of marital assets—even if the other spouse was somehow unaware. The judge will also consider which spouse has the income and ability to pay off the debt. Each case is based on the unique circumstances surrounding the debt, but under the equitable distribution laws of Illinois, the judge has discretion when dividing the assets and the debt.

Contact a DuPage County, IL Divorce Lawyer

If you are concerned about how your assets and debts will be divided during your Illinois divorce, speaking to a knowledgeable Wheaton, IL divorce lawyer can be advantageous. Mediation can help resolve disputes during a divorce, including financial disputes.

At Andrew Cores Family Law Group, we have helped many clients resolve issues surrounding credit card debt, personal loans, and other financial issues. Attorney Andrew Cores is currently a Fellow of the Collaborative Law Institute of Illinois. Contact Andrew Cores Family Law Group at 630-871-1002 to schedule your free consultation.