Once a Peoria couple decides to call it quits on their marriage, they have to choose what to do with their home. According to Nerdwallet, the first step is to assess the value of the home. Once that is accomplished, the equity of each spouse can be determined, which is the amount that each spouse owes on the home. From there, the spouses must make a choice regarding the future of their home.
One option is to sell the house. After the mortgage debt has been paid, taxes have been dealt with and all expenses related to the sale are settled, the remainder from the sale can be split between the spouses. Selling off the house offers each spouse a way to make a fresh start from each other. This might be the more preferable option if the relationship between the spouses has hit rock bottom and amicability is not possible.
Another option is for one of the spouses to hold on to the house. To do so, the spouse seeking to own the home will likely have to refinance the mortgage on the home to take the other spouse off the mortgage, pay off the remaining mortgage debt so that a new loan can replace the previous mortgage, and to release some cash to purchase the other spouse’s part of the home equity. However, this can be a challenge since some people simply cannot afford a mortgage without a partner with another income.
It is possible for a divorcing couple to simply keep the house. They may both live there, or one may choose to move out but continue to pay the mortgage. People pick this option for a number of reasons. Neither spouse may be able to afford a place to live, or they may owe too much on the house, or they just want to keep the children there until they grow up.
Keep in mind that this article is not written to provide the reader with legal counsel. It is only intended to convey general information about high asset divorce in the state of Illinois.