What Will Happen to a Vacation Home in Divorce?

When married couples invest in a vacation property, it can give them a chance to create lasting memories and escape the worries and stress of daily life. Yet, when some of these couples part ways due to divorce, fighting over ownership rights of their beloved beach-front cottage or cabin in the woods can suddenly become a massive point of contention. 

In such cases, consulting with an experienced and knowledgeable divorce lawyer is crucial to safeguard your legal rights and interests. Your lawyer will be able to provide valuable advice on property division details, such as vacation property division.

How does Illinois state law divide vacation property?

In Illinois, a vacation home is joint marital property if the house was acquired during the marriage or with marital or shared funds. Both spouses have an equal right to homeownership or dividing the financial gains if the property sells during or after a divorce. 

There are a few ways in which a vacation home can be divided during a divorce in Illinois:

1. Sell the property and divide the proceeds: If both spouses cannot agree on who should keep the vacation home, they may decide to sell it and split the profits equally under a joint agreement outlined in a divorce settlement.
2. One spouse buys out the other: If one spouse wants to keep the vacation home, they can buy out the other spouse’s share of the property. A professional must determine the home’s value, and the buying spouse must pay the other half.
3. Shared ownership: Sometimes, couples may agree to continue co-owning the vacation home after the divorce. Shared ownership can work if the ex-spouses are on good terms and can agree on using the property and sharing expenses.

If one spouse owned the vacation home before the marriage, it might be considered separate property and not subject to division in the divorce. However, if the other spouse contributed to the property’s upkeep or mortgage payments during the marriage, they may be entitled to some portion of the property’s value.

How is property divided during a divorce?

During a divorce, partners should ensure that all assets and debts are accounted for and divided equitably. Division of assets includes property and cars, personal possessions, and financial accounts that may include the following:

• Retirement accounts
• 401Ks
• Social Security 
• Disability benefits
• Pensions
• IRAs
• Stocks and bonds

Contact us today to schedule a consultation!

Divorce is a complex and confusing process, but divorce can be handled quickly and efficiently with the right expertise and support. Our Illinois divorce attorneys at Arami Law, Inc. are here to provide all the legal guidance and financial know-how needed to ensure your rights are protected throughout the divorce process. 

With a clear understanding of Illinois laws, our legal team can work hard to find a solution that suits your needs and situation. We understand the nuances of Illinois family laws, so you can trust us to provide experienced professional representation and compassionate care as you navigate this complex situation.  Contact us today to schedule a consultation.