Should I Sell or Keep My Home in My Illinois Divorce? 

 Posted on February 22, 2022 in Family Law

DuPage County Divorce LawyerOnce a homeowning couple in Illinois decides to get divorced, further decisions must be made: Who is going to move out? Should one of us try to keep the house, or sell it and split the proceeds? While each couple’s answers will depend on their unique situation and long-term financial goals, there are some things every couple should think about before they make a major decision about homeownership after divorce

Homeownership on One Income is Challenging

Many people, especially mothers who are reluctant to move their children during all the upheaval of a divorce, will negotiate other marital assets to keep the family home. But those who do this often find themselves with no savings plus the major financial burden of keeping a house afloat with just one income. If even a minor financial crisis arises, such as a spouse who stops paying child support or spousal support for any reason, the family may have no cash reserves to fall back on and the house could be in jeopardy. Experts recommend taking time to negotiate an equitable asset division that carefully considers whether maintaining a home on one income is feasible for either partner. 

Selling a Home Is Not Free

While a couple may dislike the idea of only one spouse owning the home after a divorce, selling a home has costs associated with it as well. Real estate agent commissions, inspections, repairs, and deposits or down payments on new residences can quickly eat through any equity a couple has in their home. Some experts say that the cost of selling a house can be as much as 10 percent of the sales price. If one spouse wants to keep the home while the children finish growing, but anticipates selling the home just a few years later, he or she will have to shoulder the entire burden of the expenses associated with selling. 

Consider All Tax Implications

A couple who sells a home and files a joint tax return can get a major break on any capital gains. An individual, on the other hand, may end up paying significant capital gains taxes. Another tax implication is that of city and state property taxes, which almost always go up rather than down. A small increase in local tax rates can mean a major additional expense for one taxpaying homeowner. 

Call a Hinsdale, IL Divorce Lawyer

If you are unsure whether keeping your home would make sense for you and your family, schedule a free case review with a DuPage County property division lawyer at Law Office of Martoccio & Martoccio. We offer our clients experience, skill, and results-driven representation. To learn more about what we can do for you, call us today at 630-920-8855

 

Source: 

https://www.ilga.gov/legislation/ilcs/ilcs4.asp?DocName=075000050HPt%2E+V&ActID=2086&ChapterID=59&SeqStart=6200000&SeqEnd=8675000 

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