Can I Keep My Home After Getting a Divorce?

 Posted on July 31, 2024 in Divorce

Getting a divorce involves many emotional and financial challenges, one of which is the question of what will happen to the family home. For many people, their home is not only a significant financial asset, but it is also a place filled with memories, and it is likely to have significant sentimental value. Understanding how home ownership may be addressed during the property division process can ensure that a person will be able to protect their financial interests and achieve their goals in a divorce. An experienced attorney can help divorcing spouses navigate this complex process and take steps to address and resolve concerns related to home ownership.

Addressing the Family Home When Dividing Marital Property

Illinois law requires marital property to be distributed fairly and equitably between divorcing spouses. In most cases, a couple’s family home will be a marital asset, and a couple will need to determine how it will be handled as they separate their lives and finances. If one spouse owned the home prior to the couple’s marriage, it might be considered separate property; sometimes, however, the home may have been commingled with marital assets, which can complicate the property division process. A lawyer can provide guidance on how to determine whether a home is marital or separate property and can ensure that home ownership will be addressed correctly when dividing marital assets.

A couple may use one of the following options when determining how ownership of their home will be handled:

• Selling the home: It may be best for a couple to sell their home and split the proceeds. This option allows both parties to make a clean break, and it can provide each spouse with funds to put toward a new home.

• One spouse buys out the other: If either spouse wishes to maintain sole ownership of the home, they will need to buy out the other’s share of the equity. This will require a fair market valuation of the home, and the mortgage will need to be refinanced in one spouse’s name.

• Co-ownership: In some cases, ex-spouses may choose to retain joint ownership of their home. This may be an option if they want to make sure their children will not be uprooted. Co-ownership arrangements can be complex, and spouses will need to have a full understanding of their responsibilities for making mortgage payments and addressing other expenses, as well as the options for selling or transferring ownership of the home in the future.

Benefits and Drawbacks of Maintaining Home Ownership

There are a variety of reasons why a person may wish to maintain ownership of their family home, including:

• Stability for children: A parent may wish to ensure that their children will be able to continue living in a familiar environment. Continued ownership of the family home can ensure that children can maintain relationships with neighbors and others in the community and that they will be able to continue attending their local schools.

• Emotional attachment: The home may hold significant sentimental value. A spouse may want to maintain stability during the turbulent divorce process and avoid making major changes to their living situation.

• Investment value: A person may not want to walk away from the money, time, and effort they have invested in their home. Continued ownership may provide financial advantages, especially if the property is likely to increase in value in the future.

It is also important to be aware of the potential drawbacks that may come with continued home ownership, which may include:

• Financial strain: Maintaining ownership of a home on a single income can be challenging. A person will need to make sure they will be able to make ongoing mortgage payments while covering other expenses, including utilities and maintenance.

• Liquidity issues: A home is an illiquid asset, meaning that it can not be easily converted to cash. This can pose problems if immediate funds are needed or if a person encounters financial difficulties in the future.

• Potential for conflict: If spouses choose to maintain co-ownership of their home, they may encounter disputes about what types of maintenance may be necessary, who will be responsible for paying certain expenses, and whether either party will be able to purchase a new home in the future.

Contact Our Oakbrook Terrace, IL Property Division Attorneys

During your divorce, the decisions you make about ownership of your family home can have long-term consequences. To explore your options and determine what steps you can take to protect your financial interests, contact the DuPage County asset division lawyers at Farooqi & Husain Law Office. Call 630-909-9114 to schedule a consultation and receive the guidance and legal help you need to achieve your goals during your divorce.