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Residential Real Estate Solutions for Divorce Proceedings in Illinois

real estate, division of property, Kane County Family LawyerDivorce proceedings are rarely pleasant experiences as they are commonly fraught with a plethora of challenges. Some of the biggest hurdles divorcing couples must contend with are decisions regarding how to divide and/or share their residential real estate assets.

Illinois is an Equitable Distribution State

Illinois law dictates that money or property acquired while a couple is married will be divided equitably upon the event of divorce. However, equitable does not necessarily mean that the split will be 50 percent for each partner. In Illinois, family courts are mandated to decide what an equitable division of assets is based on the specific circumstances of each case. Some of the factors that the court will consider can include, but are not limited to:

  • Each spouse’s work history and income;

  • Educational achievements of each spouse;

  • Each spouse’s future earnings potential;

  • Educational achievements of each spouse;

  • Standard of living enjoyed over the course of the marriage; and

  • Each spouse’s personal debt level as well any debt attributable to the marriage/partnership.

 

Three Solutions for Dividing Residential Real Estate Assets

When parties can use mediation to come to an amicable agreement regarding the division of residential real estate assets, it is generally better for everyone involved. Here are three potential solutions for division of residential property that you may wish to consider:

1. Buy Out

If you have the liquid cash available or if you can qualify for a new mortgage, you may wish to consider buying out your spouse’s interest in the property. Of course, this will require both parties to come to an agreement regarding each spouse’s percentage of ownership. If you and your spouse both agree to split the percentages as 50/50 that is your right, regardless of the fact that Illinois is not a community property state.

2. Sell Now and Share the Profits

This solution will also require that you and your spouse agree on a percentage split of the proceeds of the sale. However, there will not be a federal tax burden on your post-divorce home sale profit as long as your situation fits the following IRS guidelines:

  • As a single filer, your profit doesn’t exceed $250,000;

  • The property was your principal residence for two of the past five years; and

  • You have not claimed the home-sale profit exclusion in the past two years.

3. Sell Later (with a Twist)

You and your spouse could elect to either both move out of the house or have one of you remain. If you have young children, you may want to consider the option of “rotating parents” so that your children can remain in the home while the parents split their time between the original home and their respective, new residences. Maintaining three residences may not be an affordable option for every family but it is an interesting one.

At the law firm of Bochte, Kuzniar & Navigato, P.C., we provide our clients with personalized service and always endeavor to offer innovative solutions. If you are considering or have questions about divorce proceedings please contact a Kane County divorce lawyer at our firm today. There is never a charge for your initial consultation.

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