The Division of Real Estate Assets During a Divorce

 Posted on February 24, 2023 in Divorce

One of the most significant assets a couple may own is their real estate, including their marital home. The division of real estate assets can be a complicated and emotional process during a divorce. It is essential to identify and value all real estate assets and determine how they will be divided fairly. Several factors are considered by the court when dividing real estate, including a couple’s marital home.

Identifying and Valuing Real Estate Assets

The first step in dividing real estate in a divorce is identifying and valuing the assets. This includes any properties the couple owns, such as their marital home, vacation homes, rental properties, and undeveloped land. The value of each property is determined by an appraisal or market analysis.

Once the properties have been identified and valued, the couple must decide how to divide them. This can be done in a few ways, such as one spouse keeping the property while the other receives other assets of equal value, or the couple selling the property and dividing the proceeds. It is important to note that the division of real estate may impact other aspects of the divorce settlement, such as spousal support and child custody.

The Division of the Marital Home During Divorce

The marital home is often the most significant real estate asset for a couple, and the division of this property can be particularly challenging. In Illinois, marital property is divided according to the principle of equitable distribution. This means that the property is divided fairly, but not necessarily equally.

When dividing the marital home, the court considers several factors, such as each spouse's contribution to the acquisition of the property, the duration of the marriage, and each spouse's financial situation. If one spouse owned the home before the marriage, the court may consider that when dividing the property.

In some cases, one spouse may wish to keep the marital home after the divorce. If this is the case, that spouse must be able to afford the mortgage and other expenses associated with the property. If the spouse cannot afford to keep the home, it may be sold, and the proceeds divided between the spouses.

Tax Implications of Real Estate Division

The division of real estate in a divorce can have significant tax implications. For example, if a property is sold, both spouses may be responsible for paying capital gains taxes. However, if one spouse keeps the property, they may be able to avoid these taxes if they later sell the property and meet certain requirements.

It is important for both spouses to understand the tax implications of dividing their real estate assets. We can help explain these implications and advise on strategies to minimize tax liability.

Contact a Will County Divorce Attorney

Our Naperville divorce lawyer can assist you with the division of your marital real estate assets during your divorce. We can provide you with guidance on the best course of action to ensure that you correctly address these issues and steer clear of any potential legal or financial consequences. Together, we will draft a divorce agreement that safeguards your financial interests and satisfies your ongoing needs. Contact the lawyers at Law Office of Ronald L. Hendrix, P.C. for assistance with real estate issues. For a free consultation, call 630-355-7776.

Source: 

https://www.ilga.gov/legislation/ilcs/documents/075000050k503.htm