Three Reasons Why You Should Avoid Buying New Property Before Your Illinois Divorce is Finalized

 Posted on June 09,2022 in Divorce

Once you know you are going to get divorced, planning for the future is only natural. Scheduling activities with your kids, deciding how to divide your personal belongings, and finding a new residence can all begin happening well before an Illinois divorce is finalized. But what happens if one parent moves out of the marital home and does not want to rent? Is it possible to purchase a home before a divorce is finalized so you can make the transition to life after divorce as easy as possible? Read on to find out. 

Is it Legal to Buy a New House Before Divorce? 

There is no law against buying a second home under your own name while you are still married. However, there are several reasons why doing so may not be a good idea. These include, but are not limited to: 

• Dissipation claims - Using marital funds for reasons that do not benefit the marriage can expose you to asset dissipation claims. Even if such a claim is untrue, it can be expensive and time-consuming to argue that you did not dissipate marital assets when buying your home. 

• Income - As long as you are married, your income is considered marital property, as are any savings or investments you accumulated during your marriage. Your salary or hourly earnings are not yours until the divorce is finalized and anything of value you buy before the divorce is finalized will need to be part of the asset division process. Even if you plan to buy a home exclusively with money that is your personal property, such as an inheritance, that money may be deemed part of the marital estate if you have commingled it with marital money in the past. 

• Marital asset division - Until you have finalized your divorce, you cannot be completely sure what your portion of the marital assets will look like. Illinois divorce law requires assets to be divided fairly, not equally, meaning your portion could be more or less than you anticipate. You could put yourself in a strained financial position by getting a smaller share of marital assets, or, alternatively, you could be in a far better position to buy a home after your divorce is finalized. 

For so many reasons, purchasing a home or making any other major financial move before getting divorced is ill-advised. If you are intent on buying property before you are formally divorced, consult with an experienced attorney to ensure you are not jeopardizing your property rights. 

Schedule a Consultation with an Arlington Heights Marital Asset Division Lawyer

If you are getting divorced in Illinois, be sure to consult with an experienced Cook County divorce attorney before making any major financial decisions. Decisions that seem simple enough can have a significant impact on your marital asset division. Call the offices of A. Traub & Associates today to schedule a confidential consultation and get answers to your questions. Contact our conveniently located Arthur Avenue offices at 847-749-4182. 

Source: 

https://www.ilga.gov/legislation/ilcs/ilcs4.asp?DocName=075000050HPt%2E+V&ActID=2086&ChapterID=59&SeqStart=6200000&SeqEnd=8675000