The family home may be one of the most important assets for couples in Illinois who decide to divorce. For many people, the marital home is the most valuable item that they own, far outstripping other investments. In addition, it can come with sentimental attachments, especially for couples with children. Many people decide to sell the home during the divorce. This way, they can move forward after paying off the mortgage and splitting the remaining proceeds as part of the property division process. However, others may want to make an effort to stay in the family home.
It can be expensive for one spouse to buy out the other as part of the property division process. The amount of equity each spouse has in the property should be determined. This process includes an assessment of the value of the home as well as the mortgage remaining on the property. If there is a mortgage, the spouse staying in the home will usually need to refinance into his or her name alone. They may also pursue a larger mortgage to buy out the spouse. However, the spouse must be able to get approval for a larger loan from the bank based on his or her credit and income alone.
In other cases, people with other large assets may essentially trade them for one another. Those who own multiple homes may simply divide them and agree to remove one name from each deed. Others may trade home equity for a larger stake in a substantial retirement fund or investment account.
Property division can be one of the most significant aspects of a divorce, especially as the decisions made will have long-term, lasting effects. A family law attorney may represent a divorcing spouse to negotiate a fair settlement on asset division, spousal support and other matters.