During the process of divorce, determining who will get the family home is frequently a major source of contention. It is not uncommon for someone navigating Illinois divorce proceedings to concentrate on the emotional connections the individual has to the marital home and ignore the financial consequences of keeping it. There are several options to consider in keeping the home, though each comes with financial considerations.
Buyout and cash-out refinancing
A divorcing individual who wishes to keep the family home has the option of buying out the other party. With a buyout, one spouse allocates various assets to the other spouse to make up for that individual’s share of the home’s value. The other assets may be business interests, retirement accounts, investment accounts, bank accounts or something else.
A cash-out refinance is another option. In this manner, equity in the home can be accessed to pay the other spouse his or her agreed-upon share. However, when interest rates are climbing higher, this option may not be viable, as it translates to a higher monthly mortgage payment for the individual who keeps the home along with the refinanced mortgage.
Help and support readily available
Figuring out how best to address the division of marital property during divorce can be overwhelming. Fortunately, an experienced family law attorney can help those in Illinois going through a divorce to make informed decisions about how to approach the family home and other assets, such as real estate and even family heirlooms. One’s attorney will seek the most personally favorable outcome for his or her client, keeping the client’s best interests and rights at the forefront of the divorce proceeding.