Tag Archives: division of property

Could a Reverse Mortgage Help Your Gray Divorce?It can be difficult to continue to make house mortgage payments on your own after your divorce. However, you may be able to keep your marital home for the foreseeable future if you are able to get a reverse mortgage on your house. Reverse mortgages are available to people who are at least 62 years old and have a large amount of equity in their home – usually at least 50 percent. You use the money you receive from a reverse mortgage to pay off the remainder of what you owe on your home mortgage, with the surplus available for other expenses. Gray divorcees should consider whether a reverse mortgage could help them during the division of property, though there are risks.

How It Works

Assuming that you qualify, you can apply for a reverse mortgage – also known as a Home Equity Conversion Mortgage – with lenders who specialize in this type of loan. The amount of money that you can borrow will increase in conjunction with your age and the value of the property. With a reverse mortgage, you no longer make mortgage payments on your home or payments on the loan as long as you remain in the house. The loan and interest are due when:

  • You die;
  • You decide to sell or leave the home;
  • The home is unoccupied for a stipulated amount of time; or
  • The lender forecloses on your home.

The lender recuperates the money from the reverse mortgage when selling the home. You cannot owe more on the loan than your property is worth, but the lender will protect its investment by requiring you to keep up with property taxes, home owner’s insurance, and maintenance of the property. Failing to meet these standards allows the lender to foreclose on the property.

Continue reading

Should You Keep or Sell Your Vacation Home During Divorce?Owning a second home can complicate your high asset divorce. If you want to keep the vacation home for yourself, you will need to give up other valuable marital properties in return. Neither of you may want the property because you cannot foresee getting the same use and enjoyment out of it after you are divorced. Some divorcing couples choose to sell their vacation homes and divide the proceeds. You must weigh the positives and negatives when deciding whether to keep or sell a second home.

Keeping the Home

The financial and emotional value in owning a vacation home may be greater than what you could actually receive in a sale. By keeping the home, you have the option of sharing use of it with your former spouse or renting it to other vacationers. Your enjoyment from the home is also a valid reason to keep it. However, you should consider the practical cost of owning the home:

  • Can you afford the continued upkeep of the home, including months when it is unoccupied?;
  • Can you afford to pay property taxes on more than one home?
  • Will you be making mortgage payments on two homes?;
  • If sharing ownership, will you be able to work out a shared schedule with your former spouse?; and
  • Will you use the home enough for it to be worth keeping?

Selling the Home

The money you receive from selling your vacation home can compensate both of you for your lost assets and income after your divorce. You will save money on property upkeep and taxes, as well as avoid the headache of figuring out who will keep the home and which other properties you should exchange for it. However, you should not rush to sell your home without considering the consequences:

Continue reading

Should You Sell Your Wedding Ring After Your Divorce?You have a sentimental and monetary decision to make in regards to what you should do with your engagement and wedding rings after your divorce. There are three options:

  • Sell the rings;
  • Keep the rings; or
  • Give the rings back to your former spouse if he or she gave them to you.

Studies have found that Americans spend more than $6,000 on average for an engagement ring, and that average may be more than $8,000 in Illinois. Thus, the fate of your rings is highly valuable to you and your former spouse.

Selling the Rings

Illinois courts consider engagement and wedding rings to be gifts between spouses, which means they are separate from marital property. As the owner of the rings, you have the right to sell them and keep all of the proceeds. A premarital agreement could create an exception if the agreement states that you must either return the ring to the original purchaser or share its value as marital property. The value of your rings can still affect your division of property, even if they are not part of the marital property. The court has the discretion to compensate a spouse in the division of property if the other spouse has significant nonmarital properties.

Continue reading

Determining If You Need a Premarital AgreementFor all of the work that goes into creating a premarital agreement, you want to feel assured that your effort was worthwhile. Premarital agreements settle the same division of property issues as a divorce, which requires accounting for your individual properties and debts. You may feel uncomfortable discussing the possibility of divorce before you have married. Not every marriage needs a premarital agreement. However, you should weigh the potential benefits of an agreement before dismissing the idea because it is at least worth a discussion.

Financial Protection

A premarital agreement is most useful when the parties own several properties from before their marriage. In the agreement, you can:

  • Differentiate between marital and nonmarital properties; and
  • Determine which marital properties you will receive in case of a divorce.

The agreement will protect your ownership of key assets, such as your business interests and retirement benefits. An agreement can still be useful if you have not accumulated many premarital assets. Your spouse may have premarital debts, such as student loans, which you may share responsibility for during your marriage. A premarital agreement can separate the debts you are each liable for in case of divorce.

Continue reading

Redefining Winning in a DivorceThe divorce process is designed so that neither side will have a complete victory over the other. You will not keep every property that you owned during your marriage. If you are making more money than your spouse, you may be required to pay spousal maintenance as compensation. Unless there are unusual circumstances, you will be dividing your parenting time with your children. If you measure winning in absolute terms, then there are no winners in a divorce. However, redefining winning can help you feel that your divorce was successful:

  1. Winning with Realistic Goals: You should start your divorce negotiations with goals that you want to achieve. Identify marital properties that are priorities for you to retain. Understand what an acceptable allocation of parental responsibilities would be. Determine the value of the financial assets you will need for short-term financial stability and long-term prosperity. You will lose some marital properties to your spouse. Instead of losses, think of them as assets you are trading in order to retain other assets you value more.
  2. Winning with an Amicable Divorce: Spouses in a high-conflict divorce can feel defeated after the process is over. Negotiations often end in litigation, which is both time-consuming and expensive. You are more likely to be satisfied if you reach an amicable divorce agreement that does not require court intervention. Through compromise, you feel more in control of your agreement and less bitter about the outcome. The process will also be quicker and less costly.
  3. Winning for Your Children: Children are unlikely to feel that they are winning anything after their parents have divorced. The outcome will always be a divided family and disruption to their lives. When negotiating your divorce, you can decide that your children should benefit more from your agreement than anyone else. They should have enough time with each of you to maintain a healthy relationship. The parenting schedule should minimize disruptions to the children’s lives. You should meet all of your children’s financial needs through child support.
  4. Winning a New Life: Remember that the reason you are getting a divorce is so you can get out of an unhappy marriage and find fulfillment elsewhere. Short-term sacrifices are part of the price of achieving long-term happiness. Your divorce was successful if you were able to get a fresh start with enough resources to support yourself.

Your Victory

Your expectations during your divorce will determine whether you feel you have won or lost after it is over. A Kane County divorce attorney at Goostree Law Group can help you define what is a successful divorce for you. To schedule a free consultation, call 630-584-4800.

Continue reading
Goostree Law Group

Goostree Law Group

 555 S. Randall Road, Suite 200
St. Charles, IL 60174

 630-584-4800

 1770 Park Street, Suite 205
Naperville IL 60563

 630-364-4046

 400 S. County Farm Road, Suite 300
Wheaton, IL 60187

 630-407-1777

Our Illinois divorce attorneys represent clients in Kane County, DuPage County, Kendall County and DeKalb County, including Geneva, Batavia, St.Charles, Wayne, Wasco, Elburn, Virgil, Lily Lake, Aurora, North Aurora, Elgin, South Elgin, Bartlett, Crystal Lake, Gilberts, Millcreek, Maple Park, Kaneville, LaFox, Yorkville, Oswego, Plano, Sugar Grove, Big Rock, Bristol, Newark, DeKalb, Sycamore, Naperville, Wheaton, West Chicago, Winfield, Warrenville, Downers Grove, Lombard, Oak Brook, Streamwood, Hoffman Estates, Barrington, South Barrington, Lake Barrington, Schaumburg, Big Grove, Boulder Hill, Bristol, Joliet, Kendall, Lisbon, Minooka, Montgomery, Plainfield, Sandwich, Yorkville and many other cities.

ovc
Contact Us