When your marriage is ending in Illinois, you have to divide property and settle financial matters. One of the biggest property division issues you are likely to face is what to do with your family home. According to Bankrate, divorce does not affect the status of your mortgage as far as the lender is concerned. If the mortgage is in both of your names, then it will remain that way after the divorce unless you make moves to change it. One of your options is to sell it.
You might face issues when you try to sell your home, though. It is important to first assess whether you are upside down on your mortgage, which means you owe more than the house is worth. If this is the case, you will have to figure out how to pay the rest of what you owe when you sell your home. If you are not upside down, then you might be able to sell your home and pay off the mortgage. Any extra money could then be divided up with the rest of your assets in the divorce proceedings. Of course, there is always the chance that your home will sit on the market and not sell for quite some time. You will either have to delay your divorce until the home sells or consider another option.
Alternatives to selling your home would include one of you assuming the loan or agreeing to pay the mortgage as part of the divorce agreement. Assuming the loan is a good option if one of you wants to keep the home, can afford to do so and can get a lender to agree to it, which can be tricky. Including the responsibility to pay for the mortgage as part of the divorce agreement is a common scenario. However, this should be clearly defined in the divorce papers to ensure there are no issues in the future. While this information should not be taken as legal advice, it can help you understand the process and what to expect.
