If you get a divorce, you may cede your Illinois home to your spouse. However, if your name is still on the mortgage before, during or after the divorce, you could still be liable for payments even if you no longer have a right to the property. There are several ways that you can remove yourself from the mortgage if you desire.
Sell the home
In many divorces, the family home is sold and the proceeds are used to pay off the mortgage. Any money that is left over is split between the two of you. Paying off the mortgage means that the loan has been satisfied and there is no longer a relationship between yourself and the lender.
Refinance the loan
Of course, it’s possible that your spouse will want to remain in the family home after the marriage comes to an end. In some cases, this is because your spouse will be your child’s primary caregiver, and remaining in the family home would likely be deemed to be in the child’s best interest. Regardless, the loan should be refinanced so that your name is not on it after the divorce is finalized. It also allows equity to be pulled from the home so that you can be bought out.
You could retain possession of the house
You do have the right to retain possession of the house if you can afford it. In such a scenario, you can choose to simply keep making payments per the terms of the loan agreement if yours is the only one on the mortgage. However, the loan will need to be refinanced in the event that your current wife’s name is on the loan as well.
In addition to the family home, a number of other assets may need to be divided in a final divorce settlement. Property division may be handled during mediation or in court.