Common Mistakes When Dividing Debt in an Illinois Divorce

 Posted on May 28, 2025 in Division of Property

A key element of any divorce is drafting the terms of distribution of property, and part of that is the division of marital debt. While no definitive method for navigating the divorce process is perfect, there are key mistakes that you can avoid when dividing debt, and an experienced Rolling Meadows, IL debt division attorney can help you avoid these mistakes and make decisions that will benefit you in the short and long term. Consider some issues that may arise in your divorce and how you can handle them.

Not Accounting for All Debts in an Illinois Divorce

Part of the property division process is the full disclosure of assets and liabilities. A common issue is failing to account for every debt that could be characterized as marital property. To avoid this issue, carefully consider all debts, including but not limited to the following;

• Credit card accounts with balances 

• Outstanding mortgages

• Loans taken out by either spouse

• Student debt

• Personal loans, whether formal loans such as payday loans or money owed to family members

Analyzing and gathering financial documents, such as credit card bills and bank statements, will give you a better picture of the full scope of your liabilities.

Ignoring How Dividing Debt Will Affect Your Credit Score

When debt is split in an Illinois divorce, your name may remain on debts that your ex-spouse agrees to pay. That means that you could be held liable if they default on an account with your name on it. For example, if your spouse agrees to take over the mortgage for the family home that you own jointly, failure to make the payments while you are still a co-owner will impact your credit score. 

To protect yourself, pull your credit report before the divorce and read it carefully. Regularly review it after the divorce to ensure your credit is not taking a hit for anything. If you have joint accounts, cooperate with your spouse to close them, and try to settle shared debts during the divorce whenever possible.

Not Preparing a Plan for Debt Repayment in an Illinois Divorce

Taking on debts without considering whether you can afford them is a common issue in contested divorces. For example, getting the house or the car may seem like a "win," but giving it up or letting your spouse buy you out of your half could be more financially responsible. Evaluating each debt and talking to your attorney and financial advisor before you agree to take on any payments alone is critical for your future financial stability.

Not Seeking Legal Counsel for an Illinois Divorce

One of the most significant mistakes someone can make is not seeking professional assistance, especially if you own valuable assets. Divorce and property division can be highly complex for some people, and trying to navigate the process without guidance could be an expensive mistake. An attorney will protect your rights and represent your best interests, and a financial advisor will ensure you make responsible choices about debts. Both are invaluable in the divorce process.

Contact a Rolling Meadows, IL Divorce Attorney

Dividing debt during divorce is rarely a pleasant process, but the Arlington Heights, IL property division lawyer at the Law Offices of Donald J. Cosley will personally walk you through every aspect of the case. Call 847-253-3100 to schedule your free consultation today to learn more about the laws governing debt responsibility in an Illinois divorce.