Divorce is a challenging process, and when a couple decides to part ways, one of the most significant assets to deal with is often the family home. Deciding how to split a house in a divorce can be a complex and emotional journey. In this guide, we will walk you through the essential steps and considerations to help you navigate this aspect of your divorce with confidence and clarity.
Property Valuation
Before anything is done with the house it is important to get a valuation done. Determining the value of the house is crucial. You can choose to hire a professional appraiser to provide an accurate valuation. Keep in mind that factors such as market conditions, property improvements, and the local real estate market will influence the value. If a valuation has not been completed, the courts may order one to be done.
What Affects Property Division
Property division is just one of many different issues that come up during a divorce. Divorce covers issues like property division, asset division, alimony, child support, and child custody. Each of these issues can affect the other, so it is important to look at the big picture. While there are many things that can be done with the house, if you and your spouse do not agree on how it should be split, then the court will consider the rest of your agreement when coming to a decision regarding the home.
Typically, if one parent is given sole custody of the child/children, then they will get to keep the house to help maintain stability for the children. This is just one example of how the rest of your agreement can affect the division of the home. Keep reading to learn more.
Understand Your Jurisdiction’s Laws
Divorce laws and property division rules can vary significantly from one jurisdiction to another. Some regions follow community property laws, while others adhere to equitable distribution principles. If you do not have a prenup, or cannot come to an agreement, then the court will follow one of these two principles. It’s crucial to understand the specific laws that apply in your area, as they will greatly influence how the house is divided.
Community property states split assets evenly between the parties while equitable distribution states seek a fair division that is not necessarily equal. Because of this, clients often ask if there are ways to get a divorce without splitting assets. To learn more, check out “Can You Divorce Without Splitting Assets?”
Methods of Splitting the House
The first step in splitting a house is to establish the ownership structure. If you and your spouse can work collaboratively to reach an agreement regarding the house, there are many options you can explore.
- Selling the House: Often the easiest way to split the house is to sell it and split the proceeds. This is often the most common approach to splitting a house.
- Sole Ownership: One spouse solely owns the house. They can buy out the other spouse’s share of the home, then they will be the only owner and the other spouse gets their money back. This can also be done by refinancing the home so only one party has ownership. The refinancing will also allow them to buy their partner’s share of the home.
- Joint Ownership: Both spouses share equal ownership. They can continue living together in the home if they choose to do so, or they can choose to rent the home out to cover costs. This turns the house into more of a joint investment and allows couples to recuperate costs.
- Partial Ownership: One spouse may own a larger portion of the house than the other. This can also be used for rental purposes.
Understanding your goals for the house will help in reaching an agreement. To learn more about co-ownership of a home after divorce, check out “What Happens When You Divorce And You Own A Home Together?”
Negotiation and Mediation
Divorce negotiations are often emotionally charged. It’s crucial to remain level-headed and considerate during the process. If you and your spouse can’t agree on the house’s division, consider mediation. A trained mediator can help both parties find common ground and reach a fair settlement. Mediation also allows the rest of the agreements to be customized. As long as both parties consent to the final agreement, couples can create their own terms for the issues in their divorce without alterations from the court.
It is important to note that any mediation agreement must still comply with your state laws, so finding the help of a qualified family law attorney in your area can help ensure your agreement is valid and enforceable. The final step is to execute the transfer of ownership. This may include the sale of the house, the transfer of title, or refinancing to remove one spouse’s name from the mortgage.
To learn more about mediation, check out your local county courthouse’s website and our article titled “10 Benefits of Divorce Mediation.”
Tax Implications
Don’t forget to consider the tax consequences of the house division. Depending on your jurisdiction and individual circumstances, there may be capital gains tax implications, especially if the value of the home is very high. Consult with a tax professional to ensure you are aware of all potential tax liabilities.
Conclusion: How to Split a House in a Divorce
Divorce is a challenging process, and deciding how to split a house can be emotionally and legally complex. To navigate this journey successfully, it’s essential to be informed, communicate openly with your spouse, and seek professional guidance from an experienced divorce attorney. By following the steps outlined in this guide, you can work towards a fair and equitable resolution when it comes to dividing your family home. Remember, the key to a smoother divorce process is clear communication and a focus on achieving a mutually beneficial solution.
MEET WITH AN ILLINOIS FAMILY LAW ATTORNEY TODAY
The Family Law attorneys at Koth Gregory & Nieminski understand that your family is the top priority, which is why we offer SAME-DAY APPOINTMENTS. If you need a divorce or other family law services, you can schedule your first meeting through our online appointment calendar. We look forward to meeting you.
Disclaimer: This article (How to Split a House in a Divorce) may contain information that is outdated as Illinois law continuously evolves. Meeting with an experienced family law attorney is the best way to ensure you are receiving the most current information on How to Split a House in a Divorce.
Published by Dustin Koth on October 18, 2024
