When couples divorce, they may wish to sell the family home and split the proceeds. Other times, one spouse may wish to stay in the home while the other moves out. In the latter case, divorcing couples may use a quit claim deed to fulfill the requirements of property division in a divorce. A quit claim deed is used to change joint ownership of a property into sole ownership.
Even with the ownership of the family home established, any debt owed on the property remains an issue. Sometimes the party who is awarded the property will be ordered to pay the mortgage and all other expenses associated with the property such as property taxes, home insurance and routine maintenance. In some cases (often where minor children involved), one party may be awarded the property while the other spouse has to pick up the mortgage and related expenses, or alternatively, two spouses will sometimes share expenses.
Whatever the arrangement, it is important to remember that a quit claim merely changes ownership, not the obligation for both parties to pay the home loan assuming they took it out together. In a divorce settlement scenario where property is awarded to your ex, both of you will remain responsible for the mortgage in the eyes of the lender regardless of a court order stating who will pay for what – a failure to make timely payments will negatively impact both of you.
To avoid issues, you and your spouse may want to consider refinancing the family home in ‘his or her name only’ to avoid being on the hook for delinquencies or having to carry a loan into the future which may impact your ability to qualify for other loans. If financial conditions prevent your ex from being able to qualify for a loan, it may be better sell the home using the proceeds to find a more financially suitable dwelling following a divorce if you have concerns. The best way forward depends on the unique circumstances of your case.
Questions about a Quit Claim Deed in an Illinois Divorce?
Contact Experienced Illinois Property Division Attorneys for Answers
If you have questions regarding the family home in a divorce, it is important to work with an experienced Illinois property division family law attorney who can provide you with information and guidance with regard to Illinois property division in a divorce. Contact the Law Offices of Schlesinger & Strauss LLC at 847-680-4970 for assistance today.