What Happens to Debt in an Illinois Divorce?

 Posted on August 08, 2025 in Division of Assets

When anticipating divorce, most people think about how they will need to divide assets like homes, retirement accounts, and vehicles. However, debt is also part of the marital estate, and how it is divided can have a major impact on your financial future.

In Illinois, divorce courts treat marital debt like marital property, meaning it is distributed in a way that is fair, even if it is not exactly equal. If you are facing divorce, our experienced Naperville, IL family law attorneys can help protect your financial interests. Together our attorneys have over 50 years of experience working in family law, and we are committed to providing our best effort and attitude in every interaction with and for our clients.

How Does Illinois Law Classify Debt in Divorce?

Under 750 ILCS 5/503 of the Illinois Marriage and Dissolution of Marriage Act, "marital property" includes both assets and debts acquired by either spouse during the marriage, no matter which spouse’s name is on the account or loan. Debt incurred before the marriage, or debt clearly tied to non-marital property (such as an inheritance that was kept separate), is typically considered non-marital and stays with the spouse who incurred it.

Common marital debts include mortgages on the marital home, car loans for vehicles used by the family, joint credit card balances, medical bills from treatment during the marriage, and personal loans that were used for family expenses.

How Do Illinois Courts Divide Debt?

Illinois is an "equitable distribution" state, meaning the court divides both marital property and debt in a way it deems fair, even if that does not necessarily mean it is split 50/50. Under 750 ILCS 5/503(d), judges consider several factors, including:

• Each spouse’s contribution to acquiring the debt or paying it down

• Each spouse’s income and earning capacity

• Who will keep certain assets associated with the debt (for example, a car loan if one spouse keeps the car)

• Whether either spouse dissipated assets or ran up debt for non-marital purposes, such as spending on an affair

The court may assign certain debts entirely to one spouse or split them between both, depending on the overall division of the marital estate.

What Happens With Joint Accounts and Co-Signed Loans in an Illinois Divorce?

Even if the divorce decree assigns a joint debt to your spouse, creditors are not bound by the divorce judgment. They can still pursue you for payment if your name is on the account. For this reason, many attorneys recommend refinancing or closing joint accounts during or immediately after a divorce to prevent future problems.

Contact a Naperville, IL Divorce Attorney Today

Debt division in a divorce can have just as significant an impact on your financial stability as the division of your marital assets. At Pesce Law Group, P.C., our DuPage County, IL divorce attorneys understand Illinois law and the practical realities of dividing marital debt. We offer free consultations and will work to protect your rights at every step. Call us today at 630-352-2240 to get started.