How Does Divorce in Illinois Affect the Family Home? 

 Posted on March 17, 2026 in Asset Division

Most couples buy a home at some point in their marriage. The family home is often the most valuable asset a couple owns, and the prospect of figuring out how to divide it in a divorce can be daunting. Fortunately, Illinois courts have established means of handling property division during divorce, and homes are no exception.

At Goostree Law Group, we have received more than 100 5-star reviews for our dedicated representation in complicated divorce cases. Our Wheaton, IL property division attorneys can help you resolve disputes over the family home, pursuing realistic solutions in and outside of court.

Is Your House Considered Marital Property in Illinois?

Before the home can be divided, the court must determine whether it is marital property. In general, property obtained during the marriage is considered marital property. This usually includes a house that was purchased while the couple was married, even if only one name is on the title. Marital property is subject to division during divorce (750 ILCS 5/503).

However, not every home automatically counts as marital property. A house may be considered non-marital property if one spouse owned it before the marriage. Property received as a gift or inheritance may also remain non-marital. Even then, the situation can become complicated.

For example, a home owned before marriage can sometimes become partly marital property. This may happen if marital income was used to pay the mortgage, make major improvements, or significantly increase the value of the property. When that occurs, the court may determine that the marital estate has an interest in the home.

Which Spouse Keeps the Family Home During an Illinois Divorce?

Sometimes, it is necessary for a divorcing couple to sell the family home and share the profits. However, it is common for one spouse to keep the home. Which spouse will be may depend on a variety of factors, including each spouse’s financial situation, employment, and personal preferences. If there are children involved, that can factor into the judge’s decision. The spouse who leaves the home may be able to recover their share of the home’s value in one of several ways.

The spouse who stays in the home will usually do one of the following:

• Buy out the other spouse’s equity.

• Give the spouse the home’s value in other assets.

• Keep the home instead of receiving alimony, known as spousal maintenance.

• Continue to co-own the house and make payments together.

Your attorney can help you determine what works best for you and your family and fight to protect your rights.

How Is the Value of a Home Calculated in a Divorce?

Once the court determines that a home is marital property, the next step is determining its value. The value of the home plays a major role in how property is divided between spouses. In many cases, couples hire a professional appraiser to determine the fair market value of the home. An appraisal looks at several factors. These may include the home’s size, condition, location, and the recent sale prices of similar homes in the area.

The court will usually consider the fair market value of the home and then subtract any remaining mortgage balance. The amount left after the mortgage is called the home’s equity. Equity represents the portion of the property that the couple actually owns.

For example, if a home is worth $400,000 and the remaining mortgage balance is $250,000, the marital equity may be about $150,000. That equity may be divided between the spouses as part of the overall property division.

What Are the Risks of Buying Out a Spouse’s Share of the Home During a Divorce?

Buying out a spouse’s equity is not a fail-safe method for keeping a home, and it has some risks. The spouse remaining in the home may not have enough marital assets to buy out the other spouse all at once. They may need to make payments to the other spouse in addition to the mortgage. The spouse who is staying in the home could also lose substantial equity in retirement or investment funds they use to buy out the leaving spouse.

Spouses who stay in the home will also likely need to make mortgage payments on their own and pay for the upkeep of the house by themselves. The value of the house may depreciate or appreciate significantly, putting either spouse at a disadvantage. If divorce proceedings extend over a long period of time, spouses may want to get the marital home evaluated at the start of proceedings and then again at the final judgment.

Is It Worth It to Co-Own the Family Home With Your Ex-Spouse?

Spouses who can get along and who would be at a significant disadvantage by selling their home or buying out their spouse may decide to continue co-owning their home together. This can cause complications for the spouse who moves out and needs to obtain other living arrangements, since the cost of the mortgage will still appear on their credit. 

Refinancing Your Mortgage After Divorce

If one spouse plans to keep the marital home after divorce, refinancing often becomes necessary. Refinancing removes the other spouse’s name from the loan and makes one person fully responsible for the debt.

Many divorce agreements include deadlines for refinancing. Courts often expect the refinancing process to occur within a reasonable period after the divorce is finalized. In some cases, the deadline may be six months to a year.

However, refinancing is not always simple. The spouse keeping the home must qualify for the new loan based on his or her income, credit history, and debt levels. If refinancing is not possible, the couple may need to consider selling the home and dividing the proceeds.

Contact Our Wheaton, IL Divorce Lawyers Today

Asset division in a divorce is complicated. If you are considering divorce and wondering how the process will affect the ownership and value of your family home, speak with the DuPage County, IL family law attorneys at Goostree Law Group. We have decades of combined experience and can help you understand how a divorce could impact your finances. Contact us today at 630-584-4800 for a free, confidential consultation.