Who Gets to Keep the Vacation Home in Divorce?

Who Gets to Keep the Vacation Home in Divorce?

According to the National Association of Realtors (NAR), approximately 6.7% of residential properties nationwide are considered vacation homes. For high-asset couples who own a vacation home, a divorce can be especially complicated. You may be wondering: Who gets to keep our vacation home? The answer depends entirely on the specific circumstances of the case. Here, our Illinois property division attorney provides a guide to vacation homes and divorce. 

You Must Determine if a Vacation Home is Marital Property or Separate Property

When going through a divorce in Illinois, it’s important to determine if a vacation home is considered marital property or separate property. Marital property is property acquired during the marriage and subject to division in a divorce, while separate property is property owned before the marriage or received as a gift or inheritance during the marriage and is not subject to division.

If a vacation home is marital property, then it will be divided under the Illinois equitable distribution statute (750 ILCS 5/503). With equitable distribution, each spouse gets his or her “fair” share of the vacation property. 

Dividing Real Estate is Complex: Find the Right Option for Your Case

For divorce couples, real estate is often challenging to deal with. By definition, real estate—from the primary home to a vacation home to a rental property—can be difficult to split up. Here is an overview of your options for diving a vacation home that is a marital asset: 

• Share It: The vacation home will continue to be shared by the spouse post-divorce as part of some type of arrangement. This generally works best for people who are on reasonably good terms and may have children who can benefit from the continued joint use of the home. 
• Transfer It: As part of the more comprehensive property division settlement (or judgment), the vacation home could be transferred to the sole ownership of one of the parties.  

• Sell It: The divorcing couple could agree to sell the property—or potentially rent it out—and divide the proceeds. Sometimes, this is the cleanest and easiest way to deal with splitting up a vacation home. 

Speak to Our Illinois Divorce Lawyer for Help With a Complex Property Division Case

At SAM LAW OFFICE LLC, our Illinois high-net-worth divorce attorney has the skills and experience to help clients navigate complex property division matters, including those involving real estate. If you have any questions about what happens to the vacation home, we are here to help. Call us now or connect with us online for a completely confidential initial consultation. With an office in Rolling Meadows, we provide high-net-worth divorce services throughout the Greater Chicagoland area.