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Options for handling your Illinois home’s mortgage in a divorce

On Behalf of | Sep 22, 2022 | Divorce

Many couples who divorce in Illinois choose to sell their home after a divorce because neither spouse wants to keep it. In some situations, however, there’s conflict over who gets the house. So, you may want to go through mediation to resolve the dispute peacefully.


If one spouse plans to keep the home, then they need to refinance the mortgage in their name. They must be able to qualify on their income without the other spouse as a cosigner. Remember to change the title, so it’s only in your name if you’re keeping the house. If you forget to remove your ex-spouse’s name, they might still benefit from you selling the home later.

People who will receive alimony or child support for at least three years after the divorce may be able to include that income on their refinancing application. If there is equity in the home, you could apply for a cash-out refinance to pay your spouse their share while refinancing the property into your name.


Selling the home and splitting the profit is a common choice when neither spouse wants to give in to letting the other take the house. When negotiating a divorce settlement with your spouse, remember to consider the costs of selling. You may need to hire a realtor, carry out minor renovations, and pay capital gains tax and fees for selling the property.


Married couples with children sometimes consider the nesting strategy; this allows the children to live permanently in the home while parents split the time with them. Remember, losing the family home tends to be tough on the kids. Couples divorcing on more amicable terms might also split the cost of an apartment because only one of them would be living there at a time. If you go this route, you may want to negotiate terms in advance, such as how long the arrangement will last and what will happen if one of you gets into a long-term relationship.

You can sell, refinance or share your home after a divorce. What you choose to do with your mortgage depends on your ability to continue affording the payments and personal preferences.

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