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Chicago, Illinois Real Estate Property Division Lawyer
Reliable Divorce Attorney for Dividing Vacation Homes, Rentals, and Investment Properties in Chicago, IL
A couple owning a home together is already enough to substantially complicate the process of dividing marital property in a divorce. In a high-asset divorce, when the parties own one or more additional real estate properties, dividing them can be even more challenging. As you attempt to negotiate a fair distribution of assets, it is crucial to understand how much your real estate property is worth, as well as how you can best protect your interests in it.
At The Law Office of George J. Skuros, we have significant experience with real estate law in addition to our decades of experience with family and divorce law. We strive to share our knowledge with you so that you have a comprehensive understanding of all of the possible legal and financial ramifications of dividing real estate property. With our assistance and representation, you can better prepare to achieve a favorable result.
Marital vs. Non-Marital Real Estate Property
Knowing whether your real estate property belongs to you personally or to the marital estate is necessary in order to protect your interests in the divorce process. While the marital home is often jointly owned by both spouses, it is more common for other real estate properties to be the individual property of one spouse. For example, a spouse may have inherited a home or real estate property from a deceased parent or another relative, or they may own one or more rental properties as part of a business venture that began before the marriage. However, any real estate property purchased during the marriage using marital assets will be subject to division in the divorce.
Valuing Real Estate Property for Divorce
Another important step when dividing real estate property during divorce is determining the value of all properties in order to ensure an equitable distribution. The best way to value real estate property for these purposes will likely depend on how the property is used.
If the property only has a personal use, perhaps in the case of a vacation home that your family regularly enjoys throughout the year, then valuing it as you would for a residential real estate sale is likely the best option. You may choose to enlist a real estate agent for assistance with a comparative market analysis, in which you would use the recent selling prices of similar properties in the area to determine a fair market value for your property. Alternatively, you could hire a licensed appraiser to perform a more comprehensive analysis of your property's value that takes into account market trends as well as the property's condition and amenities.
The valuation process will likely be more complicated for real estate property that generates any kind of income. Such properties could include:
- Full-time or part-time vacation rentals and homestays
- Homes, apartments, or condominiums rented to long-term tenants
- Land developed for commercial purposes
For these kinds of properties, a better option may be to value them like any other business, considering not only their market value, but also the amount of income they are likely to generate over time.
Distributing Real Estate Property
Often, it is possible to negotiate with your spouse to reach a settlement regarding real estate and other marital property. In a high-asset divorce involving multiple real estate properties, you could actually have more flexibility when it comes to reaching a fair agreement. For example, you might decide that one of you should be granted full ownership of your primary residence, while the other is granted full ownership of a second home. You could even decide to remain joint owners of certain properties, perhaps continuing to act as partners in a rental business or sharing use of a vacation home. However, you should be sure that the decision you make is financially sound and sustainable. If you cannot reach a satisfactory resolution regarding a certain property, a better option may be to sell it and divide the equity. Keep in mind, though, that if the property has increased in value under your ownership, both spouses could owe capital gains taxes on the income.
Real Estate Property Division FAQs
What Kind of Lawyer Do I Need to Handle Real Estate and Investment Property Division in an Illinois Divorce?
You need an Illinois divorce or family law attorney with experience handling complex property division. If real estate and investment properties are involved, it helps to work with a lawyer who regularly handles financial issues in divorce cases. These cases often require knowledge of issues related to property valuation, equity, debt, and tax considerations.
Illinois follows the rule of equitable distribution. This means property is divided fairly, though not always equally. The court may look at factors such as when the property was acquired, each spouse’s contributions, and the overall financial picture before deciding how to divide different assets. Spouses can also come to their own agreements in a negotiated settlement.
Property acquired during a couple’s marriage is usually considered marital property. Property owned before the marriage, or received as a gift or inheritance, may be non-marital. However, if marital funds were used to pay the mortgage on a property or improve the property, part of the equity in the property may become marital property.
Rental property can be valued in several ways, whether by looking at recent sales, the income the property generates, or how the property has depreciated or appreciated over the years. The methods that may be used will vary from case to case. For instance, an investment property may be valued based on its potential to generate income. Courts may rely on professional appraisals to determine fair market value.
While not always required, a professional appraisal is strongly recommended. It will provide an independent estimate of the property’s value. This can reduce disputes and help both parties negotiate from a clear starting point.
Yes, some couples choose to keep investment property jointly owned after getting divorced. This usually requires a clear written agreement about management, expenses, and profit sharing. These arrangements will only work well if both parties can cooperate.
Selling the property can create a clean break and divide the proceeds. A buyout will allow one spouse to keep the property and pay the other for his or her share of the equity. The best option may depend on each party’s finances, market conditions, and long-term goals.
Equity is typically calculated by subtracting the mortgage balance from the property’s value. The spouse keeping the property may need to refinance and pay the other spouse for his or her share of the equity. The division does not always have to be exactly 50/50.
A property division lawyer is a divorce attorney who focuses on dividing assets and debts. They will gather financial records, work with appraisers or other professionals, and negotiate settlements. If needed, they can present evidence to the court.
Costs can vary depending on the complexity of a case and how much conflict is involved. Many attorneys charge hourly rates. The total fees may depend on how long the case lasts and whether it settles or goes to trial.
Cases involving multiple properties or high-value assets often cost more. Disputes over valuation, hidden income, or refinancing can increase legal fees. Cooperation between spouses can significantly reduce the overall costs.
What Evidence or Documents Are Needed to Prove the Value of a Rental or Investment Property in a Divorce?
Common documents include mortgage statements, deeds, tax returns, lease agreements, and repair records. Bank statements and proof of rental income can also be helpful. A recent professional appraisal of a property can provide strong evidence of its current value.
Contact a Chicago Property Division Attorney
For a free initial consultation regarding the valuation and division of real estate property in your divorce, contact us at 312-884-1222 today. The Law Office of George J. Skuros represents clients throughout Cook County and the Chicago area, including the North Shore and surrounding areas. Our Chicago asset division lawyer can provide you with counsel and advocacy for your needs.
Serving Counties Across Illinois
From our offices in Downtown Chicago & Park Ridge, we serve clients throughout Cook County, including the North Shore and the Northwest Suburbs of Schaumburg, Arlington Heights, Mount Prospect, Des Plaines, Inverness, and more. Our services also extend to surrounding areas in DuPage County, Lake County, Kane County, and Will County.
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312-884-1222
1580 N. Northwest Highway, Suite 12, Park Ridge, IL 60068
From our offices in Park Ridge and Chicago, we serve clients throughout the Chicagoland area, including but not limited to Cook County, DuPage County, Harwood Heights, Rosemont, Schaumburg, Des Plaines, Elmwood Park, Norridge, Schiller Park, Lincolnwood, Edgewater, River Grove, Austin, Niles, Morton Grove, Skokie, Norwood, Logan Square, Bucktown, Oak Park, Wheeling, Hoffman Estates, Rolling Meadows, Palatine, Cicero, Evanston, Northbrook, Mt. Prospect, Elmhurst, Glenview, Humboldt Park, and the Loop, as well as Naperville, Wheaton, Lombard, and Glen Ellyn.
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