Divorce and the Family Home

May 21, 2025

The family home often holds significant emotional and financial value, making its division one of the most challenging aspects of divorce. In Illinois, several strategies can be employed to address this issue, each with its own set of considerations. Understanding these options and how they align with different divorce approaches is essential for reaching a fair and practical resolution.

 

Challenges of Dividing the Family Home

 

Dividing real estate during an Illinois divorce presents unique hurdles:

 

  • Valuation: Determining the fair market value of the property can be complex, especially if there are disputes about its condition or potential for appreciation.
  • Mortgages: If there is a mortgage, decisions must be made about who will be responsible for it, the time frame for refinancing, and how the mortgage will be handled if the property is sold or transferred.
  • Emotional Attachment: The family home often carries sentimental memories, making it difficult for one or both spouses to let go.
  • Tax Implications: The sale or transfer of real estate can have tax consequences that need to be carefully considered.

 

Strategies for Dividing the Family Home

 

Here are the common strategies that many people choose in divorce:

Selling the Home:

 

This is often the simplest option, especially if neither spouse can afford to keep the home or if both parties want a clean break. The proceeds from the sale are then divided between the spouses.

 

Considerations:

  1. Timing the sale to avoid market fluctuations.
  2. Covering costs associated with selling (e.g., realtor commissions, repairs).
  3. Addressing any disagreements about the sale price.

 

One Spouse Buying Out the Other:

 

If one spouse wants to remain in the home, they can buy out the other spouse’s share. This requires determining the home’s fair market value and calculating the equity. The spouse keeping the home typically needs to refinance the mortgage to remove the other spouse’s name.

 

Considerations:

  1. Affordability for the spouse who wants to keep the home. Can they afford the payments?
  2. Obtaining a fair and accurate valuation of the property. This can be agreed, but often, mortgage companies want an appraisal
  3. Handling the mortgage refinance process.

Co-Ownership:

 

In some situations, spouses may choose to co-own the property after the divorce, often temporarily (e.g., until the children reach a certain age). This can be complex and requires a detailed agreement outlining responsibilities for mortgage payments, maintenance, and future sale.

 

Considerations:

  1. Potential for ongoing conflict.
  2. Need for a comprehensive co-ownership agreement. This is even more important if both people will continue living there.
  3. Long-term financial implications.

Finding the Right Solution for Your Situation

 

The best approach to dividing the family home depends on the specific circumstances of your divorce. Factors to consider include:

  • Your financial situation — can you afford the house on one salary?
  • Your emotional attachment to the property
  • Your plans for the future
  • Your ability to cooperate with your spouse

 

If you’re in the Metro East and need guidance on navigating real estate issues during your divorce, please reach out to my office. Call my office to schedule a consultation and we can discuss your options and help you find a resolution that protects your interests.

 

Disclaimer: This blog post is for informational purposes only and does not constitute legal advice. It is essential to consult with an attorney to discuss your specific situation and legal options.