What Happens to the Family Home in an Illinois Divorce?

Illinois divorce attorney, Illinois family lawyer,split your assets during the divorce. If you and your spouse purchased the house during the marriage, your house will be considered marital property. If one of you owned the home prior to tying the knot, then your home may be considered non-marital property unless you and your spouse refinanced the mortgage or put both of your names on the deed to the home.

There are basically three options that you and your spouse have when it comes to dividing the value of your home: you sell the house, one of you keeps the house, or you both keep the house. Everyone’s situation is different, so what may work for other people may not work for your family. Before you make the decision, you should weigh the pros and cons of each option.

You Sell the House

The easiest thing to do for most couples would be to sell the house, split the proceeds, and go their separate ways. This option is obviously ideal for couples whose home has appreciated in value, but couples whose home has depreciated in value may want to look at other options. If the house has appreciated in value, capital gains may be owed on the sale of the house and both spouses will be responsible for paying half of the bill.

One Spouse Keeps the House

This can be a tricky option. If one spouse wants to keep the family home, that spouse will have to become the sole owner of the home. To do this, the spouse will have to refinance the house with a new mortgage. The new mortgage would take the spouse’s own creditworthiness into consideration when refinancing and your interest rate could go up if this happens. You may also need to buy your other spouse’s half of the home from them, which could become expensive.

You Both Keep the House

Though it may be rather unusual, some couples may agree that the best option is to keep the home as a jointly owned asset. Most of the time, this is a short-term option for couples who either do not immediately qualify for a new mortgage, do not have the funds to buy out each other’s half, or just do not want to sell the house because of the children.

Consult with an Aurora, IL Property Division Attorney

Making the decision of what to do with the family home can be a tough one. Home is where you make memories and many people have a tough time letting go of that. If you are unsure of what option would be best for you and your family, a knowledgeable DuPage County property division lawyer can help. At the Law Office of Matthew M. Williams, P.C., we have extensive experience valuing and dividing all kinds of marital assets, including family homes. For more information or to inquire about a consultation, call our office today at 630-409-8184.

 

Sources:

https://www.nerdwallet.com/blog/finance/deciding-family-home-divorce/?trk_location=ssrp&trk_query=divorce&trk_page=3&trk_position=2

https://www.nerdwallet.com/blog/mortgages/how-to-handle-your-home-during-divorce/?trk_location=ssrp&trk_query=divorce&trk_page=3&trk_position=8

https://www.nerdwallet.com/blog/mortgages/how-to-split-home-value-in-divorce/?trk_location=ssrp&trk_query=divorce&trk_page=3&trk_position=5

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