When you decide to get a divorce, there are a slew of things that must be decided. You will have to figure out where you will be living and how you will be able to afford to live on your salary alone. If you have kids, you will need to figure out how you will split parenting time with your spouse and where your children will live. One of the biggest decisions you will have to make is how you will divide your marital property. In Illinois, marital property is considered to be anything that was acquired by either you or your spouse after you were married. If your home falls into that category, you also have to figure out how you will handle ownership of your marital home.
Divorce and Real Estate
One of the first things you should do when you are getting a divorce and trying to decide what you are going to do with your home is to get it appraised. This will help you know the value of your home, and it will also help you decide what you want to do with it. There are basically three options when it comes to dealing with your marital home during a divorce:
Sell the home. The easiest and cleanest way to deal with your marital home during a divorce is to sell the home and split the profits. This ensures that both spouses are treated equally during the division process, and both spouses will likely end up with a little bit of cash (as long as you have equity in the home.) However, selling the home may subject you to capital gains taxes that may be owed on the home if it has appreciated significantly.
One spouse keeps the home. It is not uncommon for one spouse to want to continue living in the marital home. This situation is especially common in families who have children, since it will allow them to continue attending the same schools and avoid disrupting their lives too much. Though this option can be beneficial for the children, it can prove difficult when it comes to finances. If one spouse wants to keep owning the home, they will have to agree upon a value for the home and then qualify for a new mortgage in their name only. They will then have to “buy out” the other spouse’s share of the home’s equity with either cash or other assets.
You continue to jointly own the home. For some couples, this is the option that makes the most financial sense. If neither of you is able to qualify for a mortgage on your own, but you do not want to sell the family home, continuing to co-own the home may be your best option. This is most commonly a temporary situation until more permanent arrangements can be made.
Consult With a New Lenox, IL Property Division Attorney Today
It can be difficult to part with your marital home, especially if you have raised your children there. On the other hand, it may not be financially feasible for one spouse to own the home. These are the things you must consider when you are making decisions about ownership of marital real estate. At Wakenight & Associates, P.C., we understand how difficult it can be to make such a big financial decision, especially when combined with the many other decisions that must be made during your divorce. Our knowledgeable Will County property division lawyers can help you understand the repercussions of these financial decisions, and we will advocate for your best interests throughout the divorce process. Call our office today at 815-727-6144 to schedule a free consultation.