Three Options When Dealing With the Family Home During an Illinois Divorce

 Posted on November 07, 2019 in Divorce

Getting a divorce is never easy, especially when it comes time to dividing your marital property and assets. One of the most valuable and treasured things you and your spouse own is most likely your family home. Divvying up such a big and expensive asset can create contention, making the rest of the property division process uncomfortable. For many couples, the family home can be a sentimental asset, especially if you have raised children in the home. When it comes down to it, there are three basic options you can choose from when deciding what to do with the home: continue co-owning the home, sell the home and split the proceeds, or allow one spouse to “buy out” the other spouse.

Co-Own the Home With Your Spouse

For some couples, keeping things just the way they are is the most beneficial option. If you have children who want to stay in the home, it can be helpful to keep the home ownership under both of your names. This can also be an option for spouses who cannot agree on what to do with the home or who want to defer decision-making regarding the home until a later date, such as when children have graduated from high school.

Sell Your Home and Split the Profits

The most popular option that couples choose when getting a divorce is selling the family home and dividing the proceeds that come from the sale. This is typically the easiest way to deal with the home, but it can have certain consequences. If your house has appreciated significantly, you may have to pay capital gains taxes on the sale, which must be paid when you file your income taxes. Divorcing couples who decide that this option is best will also have to take the time to find new living arrangements.

Have One Spouse Buy Out the Other Spouse

Another option is to allow one spouse to purchase the other spouse's share of the home's equity. This can be done if one wants to keep the home, and the other is willing to let it go, though there are some factors you will have to take into consideration. If you still have an outstanding balance on the home, the spouse who keeps the home will have to refinance the mortgage in their name. You will also have to figure out how you will buy your spouse out of their portion of equity in the home. This can be done by paying cash or negotiating with other assets.

A Wheaton, IL Property Division Attorney Can Help You Make the Best Decision

Dealing with the marital home can be stressful during divorce. Not only do you have to take into consideration your emotions and sentiments about the home, but you must also make a decision that will protect your financial stability. At the Goostree Law Group, we understand how big of a decision this is, and we can help you make the best choice for your situation. Call our skilled DuPage County property division lawyers today at 630-364-4046 to schedule a free consultation.

Sources:

https://www.forbes.com/sites/catherineschnaubelt/2019/04/01/dividing-your-home-in-a-divorce/#8e927551bcf4

https://www.nerdwallet.com/blog/finance/deciding-family-home-divorce/