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You may still be answerable for debts post-divorce

When you part ways with your spouse, you will share out the assets and debts acquired during the marriage. In Illinois, marital property is divided equitably, based on what is fair.

Property and debts are divided similarly. This means that you may end up with certain debts while your spouse handles the others. However, divorce does not relieve you from legally binding financial obligations. Creditors may still come after you to recover the debt assigned to your ex.

When can this happen?

As mentioned, debt liability does not change upon divorce. Creditors will still want their money back. If you were a signatory to a joint debt, you are legally obligated to repay it even if it was assigned to your ex. Should your ex default on making payments as agreed, creditors can come after you too. It includes joint credit card debt or a mortgage you both took on the house, among other joint debt.

It is ideal to repay all marital debt before finalizing the divorce, although it is not usually possible in most instances. The best solution is to refinance your debt and transfer debt accordingly. For example, you can take your name off an auto loan if your ex will keep the car as part of the divorce settlement. You will, however, have to agree with the lender on the changes.

Protecting your finances during a divorce

Sorting financial issues during a divorce can be complex and daunting. If you are not careful, you might end up with less than you deserve or significantly more debt.

Understanding what goes on during the property division process of your divorce can help you protect your financial interests and ensure you end up with what you deserve in debts and assets.