On behalf of Stange Law Firm, PC posted in Property Division on Tuesday, August 6, 2019.
People in Illinois who are considering keeping the family home in a divorce must first reach an agreement with their spouse about the value of the house and how much equity each person has in it. With this information, the spouse who wants to keep the home knows how much to pay the other spouse for it.
Some couples arrange for one person to keep more of the assets while the other keeps the home to make up this difference. This could mean that one person keeps another piece of property, a retirement account or other assets. Some people might be able to refinance or take out a home equity line of credit. In other circumstances, a person’s family may be able to help with a loan.
There are a number of reasons why a spouse may decide to keep the house. Some parents think it is better for their children because it gives them some stability during the upheaval of divorce. Others love the home and struggle with letting it go. Whatever the reason for wanting to keep it, there may be circumstances in which people have to face the fact that they cannot afford it. The couple may then want to sell the home and keep the proceeds.
A couple who is assessing the value of property for division should be sure that they take into account any expenses associated with the assets. For example, if one person wants to keep the family home and the other person will take the retirement account, it is important to look at whether there will be taxes on distributions from the retirement account. Furthermore, in addition to a mortgage, a home has other expenses associated with it, such as upkeep and insurance. Some people might be concerned about how liquid an asset is while others might want something that will give them long-term financial security.