When a couple decides to divorce, many issues need to be addressed, especially if they have been married for a long time. One such issue is how to divide marital property and assets. One of the most common questions in a divorce is “Who gets the house?” Illinois is an “equitable distribution” state, not a community property state. This means marital property, including debt, does not need to be divided “equally.” Instead, the law requires property to be divided "equitably." Your house (or houses if you own more than one) is probably the largest asset you and your spouse own, so it is imperative to divide it in a way that is fair to both spouses in a divorce. 

Ways to Split Real Estate in a Divorce

Couples who are divorcing should keep in mind the sale of a home will likely have tax implications and therefore should be factored into the decision-making process. They should also consider what is in the best interest of the children if they have kids.

Options exist for division of real estate such as a house. Here are some clever tips for splitting a home or homes when going through a divorce:

If you are considering entering into divorce proceedings, you may be wondering what will happen to the property you own. Each state has its own laws that determine how to divide property in a divorce. In Illinois, the law states that property must be divided in an equitable, but not necessarily equal, manner. Before the court can make the decision regarding how to divide the property, the property first needs to be divided into two categories: marital property and non-marital property. 

Marital Vs. Non-Marital Property

Marital property includes any property or debts that were acquired during the course of the marriage by either spouse. The types of property that are considered marital assets may vary widely. The scope of what is and is not marital property does not stop at large purchases; it can be any type of physical property or financial assets that the couple has in their home or elsewhere. However, some assets may not be considered marital property even if they were acquired during the marriage, such as if the item was a gift or inheritance. 

Most non-marital property consists of assets that were acquired by either spouse before the marriage. However, non-marital property can also include property received in exchange for other property which was acquired before the marriage, property acquired by a spouse after a legal separation, or property not included as marital property because of a legal agreement between the spouses (such as a prenuptial agreement). 

A recent study has found that 13% of divorced people with student loan debt cite this debt as the cause of their divorce. Traditionally, financial concerns have been a common reason for the dissolution of a marriage, and it appears that student loan debt is a new aspect of this issue.

Student loan debt acquired by either spouse may present complex considerations in your divorce case. It is advisable that an attorney review your case to make sure that these and other debts are handled properly during your divorce proceedings.

Student Loan Debt Reaches New Highs

While not as commonplace in older generations, student loan debt has been increasing in recent years. Both the number of borrowers and the amount borrowed have significantly grown. More than 44 million people in the United States have student loan debt, and it is estimated that the total amount of this debt is $1.5 trillion. Those graduating college in 2017 left school with an average of $39,400 in student loan debt.