One question that frequently arises during a divorce is ‘what rights does a spouse have to a house owned by the husband or wife prior to marriage if they divorce?”
When couples marry, many cannot fathom their marriage might end in divorce, and as a result few consider what the financial consequences will be if the marriage ends. One situation that comes up time and again is where one spouse owns a house prior to getting married and the couple makes it their home during the marriage. In the event of a divorce, the non-owner spouse is often shocked to find out they have no legal right to the home even after devoting years to the marriage or raising a family in what they thought was their shared family home.
Property owned before marriage is considered separate property and therefore it remains so. However, what many do not realize is that during the division of marital property, any payments, improvements, maintenance on the home using marital funds. Additionally, when separate property appreciates, some or all of the appreciation can be classified as marital property subject to division.
Despite this, many who find out they have limited interest in a family home owned by a spouse prior to marriage are understandably disappointed. Much more so if they were hoping to remain in the home after the divorce.
The best way to secure your financial future if you are marrying someone who owns a home is to change the title on the home from separate property to a joint title where it becomes marital property, also known as transmutation. It is also a good idea to secure a prenuptial or post nuptial agreement to specifically address what will happen to certain assets, including the house, in the event of a divorce. This may include an offset of spousal maintenance or other property equal to half of the value of the house in the event of a divorce.
When you have questions regarding a house owned by your spouse prior to your marriage and Illinois property division or would like more information regarding a prenuptial or post nuptial agreement, contact the Lake county Illinois family law attorneys at Schlesinger & Strauss at 847-680-4970.
