Do We Have To Sell Our Home During a Divorce in Illinois?

 Posted on June 30, 2025 in Property Division

Dividing a marital home is one of the most emotionally and financially significant aspects of the divorce process. For many couples, their house is both the largest asset and the place most closely tied to family memories. 

Whether or not you have to sell your home depends on several factors, including who the house belongs to, how much equity you have in the home, and your willingness to cooperate with your spouse. A Chicago divorce attorney can help you understand your legal rights and walk you through the property division process of divorce.

Is the House Martial Property in an Illinois Divorce?

The first step in dividing assets during divorce is to classify everything, including the marital home, as marital or non-marital property. Statute 750 ILCS 5/503 deals with property and debts, and under this law, marital property generally includes all assets acquired by either spouse during the marriage. This includes real estate like homes and investment properties. Even if only one spouse’s name is on the deed, the house is likely considered marital property if it was purchased or paid for during the marriage.

However, exceptions apply. If the house was bought or inherited by one spouse before the marriage, it may be considered non-marital property. Even in those cases, any contributions made by the other spouse, such as mortgage payments, renovations, or tax payments, can complicate the classification and division process.

What Are the Options for Dividing the Home in Illinois?

Illinois law does not demand that you sell your marital home during divorce, but under section 503(d) of the Illinois Marriage and Dissolution of Marriage Act, it does require the equitable distribution of all marital property. Most often, one of the following options occurs:

• Sell the house and split the proceeds: After paying off any mortgage and transaction costs, the equity is divided between the spouses. This option is often the cleanest solution and works well when neither party can afford to keep the home independently or when both spouses want to move on.

• One spouse buys out the other: One spouse may choose to keep the house by refinancing the mortgage and paying the other spouse their share of the equity. This can work if the buyer has enough income or assets to qualify for a new loan and can compensate their ex-spouse fairly.

• Co-ownership after divorce: Some couples agree to continue owning the home together temporarily. This is more common when children are involved and the goal is to provide stability. The divorce agreement should clearly outline who pays for the mortgage, taxes, insurance, and maintenance during this time.

• Deferred sale: In rare cases, the court may order a deferred sale of the home, especially if doing so is in the best interests of young children. The parent with primary custody may stay in the home until the children reach a certain age, after which the home is sold and the equity is divided. 

Each option has financial and tax implications. Before making any decisions, both parties should have an updated appraisal of the home’s value and talk to their attorneys about the legal options available based on the circumstances.

Contact a Chicago, IL Divorce Attorney for a Free Consultation Today

Whether you are trying to keep your home or you just want it to be divided fairly, an experienced Cook County, IL divorce lawyer at The Law Office of George J. Skuros can guide you through what you need to do. We focus on helping our clients truly understand the legal issues at hand so they are prepared for all possible outcomes. Call 312-884-1222 today to schedule a free consultation.