Dissolving marriages involves untangling intertwined lives. A big part of dividing imperfect unions is splitting assets and debts.
When couples are still communicating, they may independently fashion an agreement. Otherwise, the legal system plays a role in determining the aftermath of a divorce.
Dividing assets during divorce
Divorcing couples have many assets in need of allocation. Possessions include savings accounts, financial investments, vehicles, and residences. Some states divide assets on the standard of community property. Illinois is an equitable distribution state. Thus, spouses may wind up receiving partial ownership of particular items. Each spouse often winds up having a stake in the marital home.
Dividing debts during divorce
Couples accumulate all types of expenses. They may share credit card debt, auto loans, medical bills, and mortgages.
Credit card debt stays with a specific party if only one name is on the account. Each spouse must bear the burden of cards if both names are on them.
With mortgages, the easiest solution is often to sell the home. Should one person want to keep the house, a judge may arrange for that individual to assume the balance.
Cars with titles in more than one name can be tricky. When one person fails to pay, it could result in late fees and collection costs. Selling the vehicle or refinancing the loan is one way of avoiding this sticky outcome.
Debt from hospital visits needs assessment. There are financial obligations stemming from illnesses or accidents. Then, there are those resulting from elective surgeries. With the latter, the patient will likely bear the entire cost.
Divorce courts follow specific protocols that make the process as fair as possible. Understand how judges make their decisions and avoid confusion.