One main components of divorce litigation is to make sure that everything that was acquired during the union is now divided equally between both parties. When most people hear this, they consider splitting the time that is spent with the children, properties that have been purchased, and savings accounts.
Probably one of the most astounding pieces of information that couples going through a divorce discover, explains Arnold Goldstein, a prominent divorce attorney with Goldstein Law Offices in Illinois, is that when it comes to distributing debt that has accumulated during the course of the marriage, the courts don’t divide the balance in association with which party used or purchased the expenses. The entire philosophy in Illinois dictates that marital property debt is the same as assets, he says. So basically, if during the time you were married, your spouse starting using her credit card every day, some of that debt is now yours, too.
You can acquire most of these debts through common things that occur in many marriages, he says, including taking out a mortgage and borrowing against your 401k. But, when it comes down to all of the details, you’d be surprised at how much is actually considered to be marital debt, Goldstein explains, because it’s not just the big purchases like a home or a family vacation. For instance, if your wife repeatedly went to the beauty parlor to get her hair done, that is considered marital debt even if you never set foot inside of the salon yourself. Similarly, all of the groceries that were bought during the marriage, regardless of who bought or consumed the food, are also filed under marital debt. When assessing the debt, the court will also take into consideration expenses that were endured to benefit the family as a whole. These include furniture purchases, decorations for the home, child care, and children’s doctor visits.
Besides gifts or purchases that are deemed non-marital by the courts, like the diamond bracelet a husband bought for his girlfriend (not his wife) on the side, then it becomes the burden of both parties. The only other exception, he adds, are debts that either party attained prior to getting married. Typically this includes car and student loans.
The bottom line, Goldstein says, is that once you are in the throes divorce, you have to look at your marriage as a business. And, once you come to that realization, then you will be able to look at everything as being assets and liabilities, too.
This article is for informational purposes only. You should not rely on this article as a legal opinion on any specific facts or circumstances, and you should not act upon this information without seeking professional counsel. Neither publication of this article nor your receipt of this article creates an attorney-client relationship.
