Post-Divorce Surprises: When Hidden Illinois Debts Surface

 Posted on September 19, 2025 in Divorce / Family Law

Dividing assets and debts is one of the most complex, stressful aspects of an Illinois divorce. Usually, when the division of marital assets (750 ILCS 5/503) is complete, both parties breathe a sigh of relief. But what if months or even years after your divorce is finalized, you discover that your ex-spouse failed to disclose a significant debt? A credit card debt you were unaware of, unpaid taxes, or loans you never knew existed can topple your hard-earned financial stability.

Fortunately, Illinois law offers some options that can address financial deception, helping you seek relief when debts come to light following a divorce. If you have recently been unpleasantly surprised by an old marital debt you were unaware of, speaking to an experienced Oswego, IL family law attorney can help you handle this issue for the best possible outcome.  

Equitable Distribution Laws in Illinois

A handful of states still operate under community property law when dividing up marital assets and debts during divorce, which involves splitting everything right down the middle. The remainder, including Illinois, follows equitable distribution laws. Equitable distribution means marital assets and debts are not split 50/50; rather, they are split fairly.

Like assets acquired during the marriage, debts incurred during the marriage are generally considered marital debts. Since courts rely on full financial disclosure when dividing marital assets and debts, a spouse who has hidden debts may not be discovered during the divorce.

The Problems Associated with Hidden Debt

Examples of hidden marital debt include:

• Undisclosed loans and credit card debt
• Tax debt from unreported income on the part of one spouse
• "Fictitious" debts that occur when one spouse creates fake loans to friends or family members as a way of hiding assets and creating a false debt.

Hidden debt can significantly impact the fair and equitable distribution of marital assets. An unsuspecting spouse could end up with an unexpected liability, damaged credit, and difficulty recovering from the financial deception.

Are There Legal Remedies for Financial Deception During a Divorce?

Failing to disclose debts during a divorce can constitute fraud on the court and may even trigger perjury charges against the spouse who hid the debt. Illinois courts do allow parties to reopen a divorce decree when a material misrepresentation is discovered. This legal process can be challenging, requiring extremely strong evidence, persistence, and a timely petition.

Under Section 735 ILCS 5/2-1401, a final divorce judgment can only be opened under extraordinary circumstances. The petition must be filed within two years of the original judgment, although that timeline can be extended if the fraud was concealed and the motion is filed diligently following discovery.

If the courts grant the petition, the part of the decree affected by the misrepresentation will be reopened and relitigated. If this occurs, the courts may redistribute debts fairly, the concealing spouse may be held responsible for the hidden debt, and, in some cases, sanctions or attorney’s fees can be ordered.

Avoiding Discoveries of Hidden Debt Post-Divorce

A thorough financial discovery should be conducted during a divorce, using subpoenas, credit reports, and forensic financial reviews if deception is suspected. Written interrogatories and depositions that question both parties under oath can help ensure that the financial disclosures are correct and complete. In complex financial situations, a forensic accountant can investigate records and analyze financial documents to uncover any inconsistencies or hidden accounts.

Contact a Kendall County, IL Family Law Attorney

If you are just now discovering that your ex-spouse was less than truthful during the financial disclosure portion of your divorce, it is in your best interests to speak to a highly experienced Oswego, IL divorce lawyer from Loire Krajniak Law, LLC. Attorney Krajniak offers compassionate, personalized representation as she helps clients resolve all types of family-related legal matters. Call 630-448-2406 for a free consultation.