Dealing with the family home can be a difficult topic when Illinois couples decide to divorce. Unlike a bank account or a retirement fund, it is far more difficult to divide property. In addition, property division that involves real estate can carry an emotional cost that goes beyond the significant financial expenses involved in a divorce. People may feel emotionally connected to the family home, especially if they are parents who have raised their children there. Because of the complications of handling the home in divorce negotiations, many couples decide to sell their home as part of the settlement.
In many cases, this can ease the financial aspects of the divorce. Any remaining mortgage can be paid off with the proceeds from the home sale and the proceeds divided between the two partners to use toward their respective new accommodations. At the same time, however, those emotional bonds may lead many divorcing spouses to seek to keep the family home. There are some challenges that must be considered in order to prevent further difficulties from arising.
In the first place, the spouse remaining in the home will need to buy out the equity stake of the other spouse. This can be a challenge if the home has a high value significantly greater than other assets involved in the divorce. In addition, it is important to refinance the mortgage and transfer the deed into the name of the remaining spouse alone before completing the settlement. Otherwise, the other partner may retain unexpected rights and liabilities that linger long after the divorce is finalized.
Property division can be a challenging aspect of divorce negotiations, especially when sentimental assets like the family home are involved. A family law attorney may be able to work with a divorcing spouse to reach a fair settlement on a range of issues.